More Data Doesn’t Guarantee That Analytics Will Deliver Digital Transformation
Capitalizing on digital transformation opportunities with analytics isn’t something that can be achieved by merely capturing, storing, and processing more data. Real, lasting change comes from turning that data into trusted, timely, and actionable insights that drive growth and profitability.
More than ever, businesses of all sizes are acquiring vast amounts of structured and unstructured data at extraordinary rates. In fact, worldwide, quintillion bytes of data are produced every day through a stunning range of digital sources, devices, transactions, and networks that connect to, among other things, people, objects, and devices.
Every email; social media post; text message; online search history; app interaction; and financial, consumer, and healthcare transaction contribute to data volumes that are larger than anything we’ve seen before. It’s often estimated that nearly 90% of the data we have today was generated just in the last few years. This same volume, velocity, and variety of data collection almost equally apply to business transactions.
However, we often overlook the presence of disconnected and fragmented data silos – making it impossible to paint a complete picture of the business because different segments linger in detached states or isolated buckets. Left disintegrated, these data buckets rust in data warehouses and lakes – unless they evolve into cohesive and compatible building blocks that form the foundation of an intelligent enterprise.
Here are the top 10 reasons why analytics-driven digital transformation requires businesses to go beyond generating more data.
1. Data empowers us to make better-informed decisions, but not necessarily better decisions
The concept of “better-informed decisions” is distinctly different than the concept of “better decisions.” History is filled with examples of leaders making “bad” decisions, even with access to an ample volume of data.
Better-informed leaders don’t always make better decisions. However, better decisions almost always start with better-informed leaders.
2. Access to more data is useless when we do not ask the right questions
Having more data doesn’t do much good if we aren’t asking the right business questions or don’t understand the assumptions behind them.
Through critical thinking, we need to carefully examine evidence based on what’s relevant to the question before reaching any conclusions or making any decisions. That starts by asking questions, which is a prerequisite for asking the right questions.
3. Leadership is the ultimate driver for success with enterprise data, even if we don’t have more of it
The process of creating value with data begins and ends with business leaders who promote a culture of data-driven decision-making. When it’s absent, we lose direction and guidance and cannot make a significant impact.
Leading by example, data-driven leaders are eager to not only consume data, but also apply insights derived from data assets to make decisions that matter. This experience demonstrates firsthand a mindset that sets an example for the rest of their teams. By recognizing data as a strategic asset, they provide a clear and consistent message for everyone to follow when delivering business outcomes.
4. Business intelligence platforms make better-informed decisions possible, but can’t guarantee them
Coupled with the right technology, the ability to design, implement, and manage enterprise reporting and analytics platforms can deliver a fundamental aspect of business intelligence: Insight into the right data, for the right role, and at the right time.
At the same time, our teams’ talent plays a more pivotal role than technology. Their passion, regardless of the challenges they face or the resources available to them, will be the determining factor, not technology alone.
