Data has become such a prominent buzzword in the business world that it seems impossible that any company would ignore its clear and obvious advantages when it comes to decision-making. Shockingly, though, some organizations stubbornly hang on to outdated, inefficient methods. Misconceptions about how to handle data—namely, the feeling that Data-Driven Journey will run the company rather than the other way around—keep businesses from embracing the possibilities.
“It’s really hard to force someone to use something if they don’t want to use it,” says Travis James Fell, a software product owner specializing in data management and analysis. Impatient executives are also likely to prematurely disregard the importance of data if they fail to see immediate results.
“It’s not, ‘If you build it, they will come,’” says Eric Axelrod, founder of Cloud Data Summit. “You have to come after this with a specific objective. You can’t just say, ‘We’re going to build the data lake, and I’m going to find insights.’ It doesn’t work like that.”
The Data Sugar Factory
Ultimately, one of the biggest barriers for companies regarding data is that they simply don’t know how to use it and aren’t sure where to start. Forrest Gump’s mother may have compared life to a box of chocolates, but to help businesses understand the power of data, Fell discusses the “data sugar factory.”
“How do we get those little white crystals we pour in our coffee every morning?” he asks rhetorically. “Raw sugarcane can come from many different parts of the world. And it can come in many different species of sugarcane plants.” Following that, the sugar finds its way to a factory and undergoes a series of treatments: shredding, oiling, processing, spinning, packaging, etc. This gets us to those white crystals that sweeten our coffee. However, it can also be used as an ingredient in cookies, cakes, and other treats.
Similarly, Data-Driven Journey can be acquired from many different sources and forms. It can then be analyzed and interpreted using a variety of methodologies to answer a variety of questions. And of course, those findings can be disseminated into a multitude of solutions.
Don’t Let Data Take Control
Becoming Data-Driven Journey does not restrict natural instinct and acumen from its necessary role in conducting business. On the contrary, using data properly requires the human element. Otherwise, you will end up with a surplus of details but no actual objectives.
“A lot of the systems that even the largest companies in the world run, they don’t really know what they actually bought,” says Axelrod. “The person who signed that invoice should know, but there’s not a system of record that they can go into and get excellent deep data about the stuff that they’re buying.” Companies need to establish regulations that ensure consistency and accuracy. “It’s all based on how much information that they were able to encode into that short description that they’re allowed to enter and what kind of standards they apply to do that,” he says. “A lot of organizations don’t have any standards.”
Likewise, organizations should understand that data is essential in informing decisions—not outright making them. Take Target’s catastrophic, short-lived expansion into Canada. The chain had long sought to establish a presence in the Great White North, but when the opportunity presented itself, they chose to emphasize encouraging data points while ignoring critical pieces that would slow down—but ultimately improve—the process.
“When we deal with clients in the consulting world, [we tell them] the product’s going to take a year and they’re like, ‘What if you throw [more] people at it?’” Axelrod recounts. “It doesn’t matter how many mothers you have; it still takes nine months to have a baby.”
This sort of “data snacking” has become “a default mode for way too many analytics organizations,” says Fell. “To be really effective at data storytelling, I think it requires a full course meal of data governance, data infrastructure, data architecture, managing governance risk, and compliance, upholding data quality, agile customer engagements, and product development…all those different pieces of analytics have to be in place to have a truly sustainable and impactful analytics regime.”
Katalyst Can Help
Don’t allow data to get the best of your organization. The experts at Katalyst can lead you to practical, uncomplicated solutions no matter your experience level. Contact us to start your path to a data-driven workplace.
