What is data-driven mindset?

Before we go any further about implementing data-driven mindset for business success, let’s start with what the data-driven mindset is!

Data-driven mindset is a mindset that directs business professionals in an organization to see value in the information built from the data. People who implement data-driven mindset are empowered to resolve problems by having the most data possible on their side, so that they can build responsible decisions making. Based on its meaning, we can conclude that data-driven mindset is critical for business success.

Why is data-driven mindset important for business success?

As we have mentioned before, data-driven mindset is about resolving problems and making decisions based on data. By putting data at the center of decision making, a company will have these following benefits:

1.  Measuring company performance

In this case, the statement “you can’t improve what you don’t measure” adage comes into play. If we do not know the position of our ompany  right now  and where it is in the future — then it will be so hard to hit its goals. Some relevant metrics for measuring company performance are how well the company uses its resources and business processes, customer satisfaction and employee satisfaction.

By putting data at the center, we can measure company performance as well as improving our business productivity.

2.  Better decision-making

Data-driven mindset helps companies to make better decision with expected result. The implementation is suitable for every departments. For example, accounting departments can use data to make revenue predictions and develop accurate forecasts; sales can use data from CRM to track leads, and HR departments can leverage data to manage recruiting employees and improve the flows.

3.  Improving marketing efficiency

After all, the more company understand their customers, the better company can serve them. In today’s digital era, we can get all information about what customers previously bought which products or services. It is increasingly becoming more predictive. It is useful for providing relevant products or services for customers in the future. Therefore, implementing data-driven mindset is the right strategy for companies to improve their marketing effort and simultaneously improving their sales performance.

Before digitalization era, taking risks in business may pay off, but now it has changed. Data-driven approach is good to reduce the risks of business decision.

Data-driven mindset is crucial for all employees, especially for business leaders. Bceuase it helps them  to make wise business moves. To be able to implement data-driven mindset across organizations, you need supporting tools to unleash the value of every data you have. Modern data analytics platform (link) can be the right solutions for companies to collect, save, analyze, and unleash the value of data.

References:

https://www.teradata.com/Trends/Data-Management/Data-Driven-Culture

https://www.mdm.com/blog/technology/4-reasons-to-adopt-a-data-driven-mindset/

https://www.forbes.com/sites/brentdykes/2019/03/28/the-four-key-pillars-to-fostering-a-data-driven-culture/?sh=394d2a2c7d90

https://www.atinternet.com/en/glossary/data-driven/