Data is the new oil. Those that figure out how to use it more effectively than their competitors are realizing significant, strategic benefits. But what's so unique about data-first companies? Technology? People? culture? It turns out, there's more than meets the eye.
Data usage is changing the competitive landscape. The businesses that know how to leverage it are changing the rules of the game, whether they are true disruptors or companies that have found a way to out think their competitors.
Even gradual changes, given their accelerated rate, can be confusing, let alone game-changing shifts. A common assumption among those falling behind is that Technology will make all the difference, but there's more to the story. Companies have to change the way they think and operate.
The Natives Have an Advantage
Despite being categorized as something else -- ecommerce giants, entertainment subscription services, or ride-sharing services -- it's data that drives companies such as Amazon, Pandora, Netflix, and Uber. Because analytics has been baked into their DNA from Day One, it's a natural part of their technology stack and an integral part of their culture. Other organizations that historically have not considered analytics part of their core competency are having to change the way they think and operate as more of what they do becomes digitized and connected.
All companies have data, of course, but not all of them are using it with the same level of mastery. More organizations are using analytics, but for many of them it can be difficult to operationalize their data, particularly when "business as usual" is getting in the way.
Agility comes naturally to most data-first companies because they're primarily software companies. Their young engineers and founders "grew up with" agile software development practices, so the overriding theme is continuous improvement. From a business standpoint, that means executing on a vision while simultaneously anticipating change. From a product standpoint, they're constantly experimenting, learning, and refining, often in production, using their vast user bases as live labs for A/B experimentation.
Technology and business models are changing so rapidly that any company clinging to its past will find itself outdone by a more forward-looking competitor.
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