While businesses today are gathering and storing more data than ever before, many still struggle with how to use the collected information. Building a data-driven culture that can leverage the massive amounts of data helps organizations become more nimble, innovative and responsive to shifting markets and customer expectations.
Building a data-driven culture also means having the tools available to sift through the data to find actionable insights. Fortunately, today companies can use enterprise resource planning (ERP) and business intelligence (BI) solutions as the foundation. Here’s a closer look at ERP solutions, BI, and the data-driven culture.
Why a data-driven culture is critical
In a 2018 survey of business intelligence users and consultants, the research firm BARC said building a data-driven culture was the top trend driving the BI market among North American respondents. It was the number two trend among South American respondents and fifth worldwide.
“This represents a major shift in today’s business world,” said BARC founder and CEO Carsten Bange. “Creating a data-driven culture is about replacing gut feelings with decisions based on data-derived facts.”
A data-driven culture is essential in today’s competitive environment because it offers a fact-based approach to solving business problems. What can a data-driven approach offer? Here are a few advantages:
- Cost reduction. A Harvard Business Review article noted that nearly 50 percent of Fortune 1000 executives had started to see a decrease in expenses by using Big Data.
- Better collaboration. With a data-driven approach and using an ERP solution, employees can see and use the same data in real time, leading to new insights, perspectives and partnerships.
- More accountability. With a data-driven culture, there can be more accountability for decisions made, using data gathered and analyzed before and after a new solution is used.
- More ROI on investments. Companies today are investing more in tools to collect, transmit and store data. By leveraging and even commoditizing that information, companies are better able to demonstrate a return on those investments.
- Specific targeting. A data-driven culture allows your organization to develop more personalized and customized solutions for your best customers and prospects using predictive modeling, artificial intelligence, automation and data mining.
- Informed decision-making. While it may appear obvious, having the right information available when decisions are needed is important. You need the ERP and BI tools available in the moment, with real-time information, to make better decisions faster and with confidence.
Building a data-driven culture
Creating a data-driven culture does not happen overnight. However, there are steps leaders can take now to build an organization that embraces and uses data, including:
- Focus on democratizing data by giving employees the power to collect, analyze and use it.
- Stress data quality to ensure that information is collected properly and accurately.
- Establish data governance policies that spell out how data is collected, stored, accessed and used.
- Promote data literacy.
- Connect data to core business objectives to show why data matters.
- Use the right tools.
At NexTec, we help companies choose the right ERP and BI solutions that collect and use data to meet pressing business needs. Having the right ERP/BI partner helps accelerate the process of becoming a data-driven business and reaping the rewards.