Data driven strategies improve decision making and enhance business performance. In this monograph we help you to make the right use of data.
Spanish companies face a number of challenges in order to stay competitive and be successful in their sector. Because of the increasing amount of data available, datadriven business strategies, also known as data-driven strategies, become especially important for self-employed and SMEs, as it allows them to make informed decisions and increase their competitiveness.
According to the Spanish National Statistics Institute's survey of the first quarter of 2022 ICT in companies, in general terms, only 3.77% of companies with less than 10 employees used Big Data in their organisations. The extrapolation of this information allows us to elucidate that it is a tool that is little used, despite its great usefulness and ambivalence.
But what is this tool, how useful is it and why is it so valuable in today's world?
A data-driven strategy is characterised by the incorporation of data and the maximisation of its value for your business, supporting and reinforcing its performance. It involves a number of features such as the integration of data and advanced analytics into corporate strategy, the provision of structures, roles, processes, policies and services geared towards the intelligent use of data, the development of this culture and the establishment of an enabling technology architecture and infrastructure.
However, this approach consists of several levels, which will vary depending on the business model of each company, so it is a tiered and differentiated process between: Data-Incipient, Data-Opportunistic, Data-Tactical, Data-Managed and Data-Driven.
The process can involve complicated stages, therefore a strategic data model is established consisting of four interrelated dimensions that help to answer questions about how to establish this data-driven strategy: Business Value, Data Governance, Data Culture and People and Architecture.
The correct implementation of the strategy, following the established steps for its achievement, is also of utmost importance. These steps are as follows:
- Identify opportunities for implementing a data-driven strategy. By identifying opportunities for data-driven decision making, SMEs can focus their efforts on the areas of their business where data can have the greatest impact and generate the most value.
- Data collection and analysis. Having identified opportunities to implement this strategy, the process begins with data collection. It is important to choose the right data sources and tools based on the existing opportunity, specific and global objectives, needs, budget and resources, etc.
- Implement a data-driven strategy. Having identified the opportunities for developing a data-driven strategy, and having collected and analysed the data, implement the strategy effectively.
Ultimately, implementing a data-driven business strategy can be particularly beneficial because, by providing a solid foundation of data to inform decisions, a self-employed or SME can increase efficiency, reduce costs, improve customer satisfaction and increase sales and profitability.