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High-performing organizations can stay ahead of their competitors by achieving their data and analytics goals and fostering a data-driven work culture.
To achieve the same, one must improve upon the following points:
- Easily accessible data: With data readily available to frontline employees in high-performing organizations and incorporated into day-to-day operations, it can help achieve business objectives and ensure you are one step ahead of your competitors.
- Adopt new technologies: With new tools and technologies being developed every day, one must learn to use them concerning data and analytics to overcome the challenges of achieving scale.
- Adapting the organization: Having a data-driven culture will not only help you achieve the goals of the organization, but it will also help in leveraging the new technology that is being introduced in the market, and will make sure that there is a learning environment in the organization, which will ensure the longevity of the organization.
Digital Transformation programs are today at the forefront of every organization. Data and analytics have helped businesses grow in both magnitude and scope, continuously reshaping the industry and their core businesses.
A recent McKinsey survey on data and analytics suggests that the gap between leaders and laggards has been widening, as data and analytics have boosted the business’s revenue and earnings. To ensure businesses stay at the top of the game, they have been developing strategies in data and analytics for the long run and have made this part of employees’ workflows to educate them and build a data-driven culture.
Findings
20%+ Respondents from the high-performing organizations reported that their data and analytics initiatives contributed at least 20 percent to earnings.
47% of the respondents state that data and analytics have changed the nature of competition in the past three years.
McKinsey Survey on Data and Analytics
Strategic Importance of Data & Analytics The creation of a strategy is the most critical element in achieving the business’s objective, according to the respondents, as a lack of strategy can become an obstacle to success. Having a data and analytics strategy has been ranked as the most important factor for success by 21% of respondents.
McKinsey Data and Analytics Survey
57% of the respondents working in the high-performing companies are more likely to alter their long-term strategy in response to data and analytics.
60% of respondents working in high-performing companies understand how strategies should be aligned with data and analytics, compared to 44% in other companies.
A data-driven culture in the company is also important for achieving business objectives. The data and analytics practices in high-performing companies include having at least one C-suite leader, readily available data for frontline employees, and a culture that tolerates failure.
McKinsey Data Practices at Respondents' Organizations Survey
Respondents working in non-high-performing organizations said their companies struggle to encourage the use of data and analytics, compared with high-performing organizations, where executives and managers possess knowledge of data and analytics and leverage it. Education plays a vital role in this, as knowing the data and analytics can help achieve the objectives.
McKinsey at High-Performing Organizations Survey
Having technologies that can exploit data and analytics in a data-driven culture is equally important as having a better data architecture than a non-high-performing organization.
McKinsey More Common Among High-Performing Companies Survey
When data and analytics are infused into the organization’s culture, it can be a source of momentum and ensure that the organization’s mission is aligned with business operations. To stay at the top of the game, businesses are investing in data and analytics to grow in both magnitude and scope, but they should not forget that data should be driven by business needs, not by technology.