Nowadays, companies around the world take different approaches and implement different business strategies in order to gain a competitive advantage and beat their competitors, however, one of the most successful tactics is shifting the focus of a company from trusting your gut to analysing data when it comes to making important business decisions. James Barksdale, former CEO of Netscape, once said: If we have data, let’s look at data. If all we have are opinions, let’s go with mine. Business data is an infinitely better source of knowledge than your intuition or even multiple Excel sheets completed manually as they are simply highly prone to errors. What enables you to collect and analyse data in a quick and effortless way is business intelligence tools. They automate the process of gathering information and provide you with a deep insight into your business operations. What can your company really gain from making data-driven decisions?
Benefits of making data-driven decisions
There are many factors which enable companies to succeed, including skilled employees, healthy work environment and favourable market conditions, however, the real secret of a successful business is making data-driven decisions. Using business intelligence tools enables companies, regardless of their industry, to:
- Gain flexibility – gaining a wide business knowledge enables you to become more agile and adjust your company to the ever-evolving market. You can easily follow not only your business operations but also the market trends in general and thus be ready to innovate
- Improve customer experience – with a deeper insight into your customers and their behaviours on every step of their journey, you can effortlessly become more customer focused and provide your clients with an excellent customer service to make sure they are willing to build a long-lasting relationship with your company
- Drive sales – gaining access to real-time business data allows you to provide your clients with exactly what they are looking for. By determining what are the most popular products or services you offer, you can refocus your marketing campaigns and thus gain more clients
- Detect new opportunities – by collecting and analysing valuable information on your company, its operations and the industry in general, you may find it easier to detect any possible errors and spot new or missed business opportunities. Next time they occur, your company will be ready to take them
- Streamline employee collaboration – when all employees have access to historical and present business data, you can easily build a transparent and healthier work environment. Your team can now reach the same level of business knowledge and, thanks to that, improve their cooperation
How to become a more data-driven company
Storing large volumes of data is not enough to gain insights into your business operations, on the contrary, it can often slow down your systems and be highly cost-consuming. If you want the data to become valuable, you need to analyse it using suitable tools and implementing suitable strategies. What allows you to collect and analyse business information with minimum effect but great results is:
- Build data-driven strategy – analysing all of the data gathered by your organisation is a time-consuming and not always efficient process. Before implementing necessary tools, try to determine from which information your business can benefit the most and which processes you want to improve. Building a business strategy to make more accurate data-driven decisions will streamline the next steps of the process
- Acquire business intelligence tools – there is a reason why business intelligence has been one of the hottest technology trends for a while now and it is its simplicity combined with the results it allows to achieve. BI is a set of tools which collect given data and present it in a graphic form for you to better understand it. What makes BI unique is the fact that it does not tell you what to do, it allows you to estimate it yourself by gaining deep insight into your business at the same time. You can find more on Business Intelligence here
- Integrate your systems – it is important to remember that different departments in a company often use separate systems which may lead to inaccurate data reporting. In order to ensure seamless dataflow in an organisation, it is best to integrate the systems as it not only builds a universal source of information for everyone in the company, it also improves the productivity of your employees by automating multiple tasks. You can discover more benefits of systems integration here
TO SUM UP
Today, the market is highly challenging. If you want to stay in the game, it is vital to improve the decision-making processes in your company by relying on an accurate and compelling data source. Introduce business intelligence tools to your organisation and gain insightful information on what you may improve to grow your business.