Business

Give speed to decisions in your company with these 7 steps of data strategy

7 min read

The opinions expressed by collaborators are personal.

“We will not return to normality because normality was the problem”, is an anonymous message from an author that describes very well what is happening in the social, economic and political world.

Give speed to decisions in your company with these 7 steps of data strategy
Give speed to decisions in your company with these 7 steps of data strategy

And in a new world, with new rules, “you have to do new things because what has always worked has stopped working. It's time to get out of our comfort zone, ”says Pascual Parada , IEBS director of innovation.

During the fifth live class: “Data Strategy, the true data driven strategy”, organized by and IEBS through the HomeSchool initiative, Pascual points out that we are facing a world of exponential speed and full of opportunities, for which unfortunately the Most people are not prepared.

“The Covid-19 virus is exponential, but our decisions are still linear,” says Pascual. “We need to think exponentially and make decisions about the predictive analytics that comes out of the data and how we are going to be in a few days.”

Proof of this is how Apple and Google are chasing the coronavirus with the transmission of data by bluetooh.

Pascual explains that the concept of competitive advantage is expiring and now an analytical advantage must be considered, which is the ability to capture, store and manage data to make increasingly intelligent business decisions.

Data-Drive Companies

A data-drive company is one that has an analytical advantage, that makes business decisions based on data rather than intuition. Although the final decision will be made by the leader, Pascual clarifies. Those decisions are expected to become increasingly robust.

These are some examples.

  1. Netflix. Through the data, this platform discovered that its subscribers wanted content directed by David Fincher and that Kevin Spacey should be the protagonist. In addition, the stories of political corruption were very popular, they even knew the color of the cover. This led them to buy the rights and order 26 chapters, when the usual number was only 8.
  2. John Deere. An agricultural machinery manufacturer that has experienced world wars and many other crises. In 2010, it transformed to data and launched its sensor platform into farm machinery where data is accumulated that is uploaded to a platform and crossed with pest, crop information to offer by subscription to its suppliers.

“As business leaders we must know that we have more than enough data, we must only learn to use it,” says Pascual.

Data Strategy Methodology

In the data revolution there will be winners and losers. What side do you want to be on? To be on the winners' side, Pascual shares seven steps that include a big data strategy to revolutionize any company.

1. Orientation

If you are going to apply such a strategy we need to put 1 or 2 strategic objectives that you can identify with these questions. Why can data and analysis help the organization? Do they make sense of the organization? Is there a department, section or division indicated to benefit from the data? Will the data make us say things we don't know? Is vision more achievable?

Then write a data policy , a manifest of values ​​that must be communicated and followed.

2. Smart Analysis

With everything you know and with the right data you can achieve anything. The significant data to understand the clients of now is enough to have 2 or 3 years ago.

Do not start with the data, but with the questions you must answer and then, yes, go find the exact data.

The questions must be asked from four different dimensions and always think about what data can help you solve the questions.

  • Value proposition panel . What are the benefits or results that our clients want to obtain? What can we solve? What bothers our client? Do we have adequate products to increase the benefits provided to our clients?
  • Customer panel. What is our target market? What do we know about the customer segment? Can we apply segmentation analysis? What do we need to know better about our clients? What factors drive customer loyalty? Customers are what the data tells us about our customers.
  • Operation panel. Do we work with suppliers, distributors and other key partners? To what extent are such collaborations good? How to optimize our value chain? What should we do that we still don't know? Do we have the right organizational structure?
  • Finance panel. What is the monetization model? It can improve? How much does it cost to produce the product? Do we know the exact margin? What is the optimal price of our product?

3. Formulation

Let's define the analytical advantage of what is the ability of companies to manage data, internal and external, to extract information and make more efficient business decisions based on such knowledge.

It is important to state the strategy.

4. Data

No data is more important than another, it will only have value if it helps answer Smart questions. Of all the questions asked, we will try to answer a single question: the one that concentrates the essence of your business.

For example, in the case of IEBS, Pascual formulated the following: How to know which teachers are excellent over the good ones? I want a score from the teacher. That is the first project.

5. Analytical

It can be descriptive analysis. What happened ?; diagnostic analysis, why did it occur ?; predictive analysis What will happen ?; prescriptive analysis what will we do if it happens?

Tools are available from Amazon Web Service, Watson from IBM. All companies can access algorithms that are economically very accessible in the market.

“The problem is not in the algorithm, it is getting the data and knowing what question needs to be answered. The data sometimes knows more about us than we do. So we have to throw away the customer segments and make new ones with today's data ”, says Pascual.

6. Communicate

“The brain is made to see connection patterns, not to read tables,” says Pascual. So you need to convince managers and the board of the importance of this information. A data advance is not communicated with a graph, we need storytelling. What stories do the data tell you?

7. Transformation

If this strategy is not applied, all the previous work was useless. You need to sit down with the CEO to see how new business models can be created; with the CMO to view customer issues; with the COO, to see the implementation at the operations and personnel level; with the technology CTO. “You have to make a visual roadmap with the great actions to be carried out by the organization according to its faculties.”

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