Data-Driven Management: An increasing number of companies are using data as a primary source of information for good management.
This is because virtually all devices emit some data, whether structured or not. It is possible to draw insights for decision-making in various sectors, from computers to sensors, including home appliances, with a good structuring and data mining tool.
This trend is called data-driven or data-driven and has been increasingly absorbed by companies. It is not an easy cultural change, especially in more traditional companies commanded by more conservative executives. However, the truth is that the competition will certainly absorb those who do not adapt.
This post will better understand what data-driven is and its practical benefits for adopting this strategy. Check out!
What Is Data-Driven?
Data-driven is a term increasingly used in the corporate world and refers to how a company positions itself and how internal processes are planned for the data produced. This means that, with the volume of data that companies are producing, it is the way management deals with this information that will define whether its performance is data-driven.
In other words, we can say that data-driven starts with a culture change within the company to make data processing smarter — almost always using data science to seek insights and solutions that optimize decision-making at all levels. Sectors like:
Marketing — with data-driven, professionals can better understand customer behavior and profile;
Sales — sellers can identify the customer’s willingness to close deals, making their approaches more accurate and efficient;
People management — with data analysis, it is possible to assess the level of productivity of each employee, and team, increasingly aligning with the company’s expectations;
Innovation — increases the chances of identifying new ways of offering a service or product according to the expectations and needs of customers.
A series of combinations can be made with the crossing of data to favor the company’s development. In this scenario, the IT sector gains prominence, as it is the area that presents, makes available, and creates policies for the use of digital tools, in addition to being the sector in which professionals responsible for data science will be.
What Are The Benefits Of Data-Driven For Companies?
With good data, the company can know its target audience, pain points, and demands, increasingly refining its activities. See below what are the advantages that data-driven can bring to your company:
Consumer Segmentation
Structuring the data, segmenting audiences, and identifying strategies to reach each customer profile is easier. The company can launch personalized campaigns on the internet, in addition to anticipating trends according to the behavior of a certain group of people.
Quality Content Creation
If you have a website, you certainly want to attract more visitors to reach your goals, and the best way to achieve that goal is with relevant content. Suppose the site administration is done data-driven. In that case, it will be much easier to identify which is only the most relevant content for your audience, current trends, and even what your competitors are publishing.
A/B Test Production
A/B tests are extremely important for the company to identify which strategies are working and which should be eliminated. For example, with some differences, the company launches two campaigns for the same strategy and analyzes the data to identify the one that gave the most results. In this way, it is possible to have a continuous improvement process based on data, not impressions.
Results Acceleration
Data-driven enables companies to anticipate market trends, allowing for much faster decision-making. It will depend on qualified data and automated tools, which make the intersections and can autonomously map the insights.
Integration Between Marketing And Sales
This integration becomes natural with data-driven if there was already a prominent need for a union between the marketing and sales sectors before the digital transformation. The sales team can analyze data from the marketing teams’ work results in real time, creating a complete intelligence center and increasing conversion chances.
What Is The Importance Of The IT Sector In Data-Driven?
We can explain this relationship based on a basic principle: if their objective is to collect, structure, and retrieve large volumes of data, companies must have an IT infrastructure capable of processing them and an autonomous tool for data mining. Data, which can be equipped with artificial intelligence and machine learning.
This includes the need for the company to have good servers and high-performance structured databases. In addition, it will be necessary to implement IT governance, which is focused on Big Data, with guaranteed data protection, through good firewalls, access control, and the development of a security culture.
Cloud computing also plays an important role for companies using data-driven philosophy. This is because its virtualization resources deliver greater ease and require a lower investment compared to physical infrastructures. A good IT manager should promote an innovative environment, change the IT team’s culture, and always clarify the importance of data for the business as a whole.
Assemble A Qualified Team
In addition to worrying about the entire infrastructure, it is up to the IT manager to assemble a qualified team with specialized professionals in the important areas for data analysis. This team must be prepared to guarantee the availability of all infrastructure that guarantees data-driven strategies.
In addition, hiring professionals focused on a more strategic scope may be necessary who can handle data beyond the obvious. For example, larger companies may need to hire a data scientist, a professional specialized in analysis, identifying insights and statistical models based on database analysis.
Also Read: What Is Low-Code And No-Code Development?
