In present times, when there is cut-throat competition and businesses rely more on stats than gut feeling, it is essential to understand the importance of data analytics in digital transformation. It is an essential asset that can drive the digital transformation efforts of your organization and help you achieve desired results.
Still, only 50% of corporate strategies mention data analytics as critical component of data transformation.
But this will change soon. Businesses will start realizing the importance of data analytics in digital transformation. According to a report from Gartner, 90% of business strategies will start considering information as a valuable enterprise asset and analytics as an essential competency by the year 2025.
Here is what Douglas Laney, a distinguished VP analyst at Gartner has to say about the role of data and analytics in digital transformation:
“A company’s ability to compete in the emerging digital economy will require faster-paced, forward-looking decisions. So, data and analytics leaders need to assert themselves into corporate strategic planning to ensure that data and analytics competencies are incorporated within the highest-level public-facing enterprise plans.”
Hence, it is the high time to amplify the data analytics discussion and make it an essential part of the enterprise strategy. That’s what leading organizations are going to do. They will start treating data analytics as a competitive weapon, operational accelerant, and innovation catalyst.
How Can You Use the Power of Data Analytics in Digital Transformation ?
1. Build a Data-first Culture
A data-first culture is what will help you gain a deep understanding of your target audience and make smarter business decisions. It will also you give an idea of how you can achieve your digital transformation goals and which areas you should focus on. So, start by building a data-first culture for your organization.
Learn how to build a data-first culture for digital transformation in your organization.
2. Create Data Analytics Leaders
Data analytics leaders bridge the gap between data science and market strategy. So, companies need to hire more of these data & analytics leaders so that they can help powerful business strategies.
However, just hiring these people is not enough. You must also empower them so that they can ask the right questions about data and give the right suggestions about it. Only then, they can make the right contribution.
3. Hire a Chief Data & Analytics Officer
The chief analytics officer will guide data analytics leaders and help you develop a data-driven culture for successful digital transformation. So, we would advise you to begin investing in roles like Chief Analytics Officer or Chief Data Science in your company.
4. Focus on Data Quality, not Data Quantity
Most organizations collect data only for the sake of collecting it. Avoid falling into the same trap. Instead of gathering any type of data, follow a lean approach. Gather data only when it helps in optimizing the experience of your target customers, better predict future behaviour, or help in smart decision-making.
5. Separate the Signal from Noise
For making the use of data and analytics in digital transformation, you must learn how to separate relevant information from raw data. You must understand what works for your organization and what doesn’t. It will help you better understand your target customers and deliver the product that suits their requirements.
6. Build Central Data Repositories
To better understand your prospective customers and make smart decisions using data and analytics, you should build central data repositories to store data gathered from different sources. Doing so will ensure that the data science department can access the data for analytics from a single place rather than having to access it from diverse locations.
7. Collaborate Data Science and IT
Data science and IT needs to operate in collaboration if you want to make the best use of data and analytics in the growth of your business. It is because the unstructured data needs proper navigation and processing before you can use it. Otherwise, data will not aggregate, and your company will risk losing insight return from it.
How Team Softobiz can Help?
Given the increasing importance of data analytics in digital transformation, we put a major emphasis on it in our organization. We have established a data-first culture that focuses on gathering relevant data, hiring data leaders, and using appropriate tools to turn the collected data into actionable insights.
You can leverage our data science and digital transformation expertise to make more informed decisions and significantly grow your business.
Talk to our experts if you are also looking forward to using data analytics in digital transformation. We can provide you the much-needed guidance.