Digital Transformation: Why be a data-driven company?
The digital transformation we are experiencing has provided us the possibility to create new business models.
Enterprises that until recently seemed well consolidated are now modifying their performance in the market through data science.
Continue to understand the importance of thinking about implementing a digital business model, and see how to use the data that already exists within your company to create innovative business solutions!
The Digital Revolution
Let us start by putting the Digital Revolution into context, a term we have heard more lately. It refers to the rapid leap in information technology, from analog to digital.
An exciting way to visualize this movement in practice is to see how communication habits digitized in recent years—as of 2010, mobile communication, via the Internet, reached 70% of the world’s population.
With new devices constantly hitting the market, and innovation that piques consumer interest, digital technology has become as common as driving.
This revolution has also reached the corporate world – in fact, at this point, it’s difficult to say whether companies have joined or been driving digital technology in society as a whole, but that doesn’t matter.
You need to know that no business can afford not to have a strategy to take advantage of the digital revolution.
Digital Transformation and the new data business models
Within the digital revolution, an interesting phenomenon is played out by companies: Digital Transformation.
We say that a company is in the digital transformation when it implements processes for exploring digital technologies, to make adjustments in its operations and strengthen its strategies, among other things.
It is also correct to say that many companies are unconsciously experiencing this transformation, that is, without a well-defined strategy. Transformation without a clear plan is what we refer to as an unstructured digital transformation. Changes do not permeate all levels of the company or tie into any strategic objective.
Organizations where digital transformation is thought out and follows clear guidelines usually use digital resources to create new business models.
It’s one thing for a traditional company to adhere to systems and applications in the hopes of modernization processes. It’s another to employ these digital resources to innovate and generate market value.
The value of data in a world of digital transformation
You can’t talk about revolution and digital transformation without first understanding the value of data. In this new world, it takes an active role and can be employed to generate real business value.
A company that has already taken on digital transformation as a strategy can understand and analyze market trends with the help of Big Data services and tools.
Take, for example, customer buying patterns. By understanding them, a business can anticipate demands, ensuring that the most sought after products are always available, which positively impacts customer service.
Big data is the perfect tool to get a good view of your customers. It can “predict” your needs in advance and therefore provide better results in customer service. User problems can be minimized and resolved on time. Any negative feedback on your social media channels or websites can be detected quickly, allowing you to take immediate action.
Proper data analysis management, which involves Big Data, Business Intelligence, and Analytics platforms, has helped many companies make their processes more automated and practical, saving money and boosting productivity.
Let’s take a look at a practical example. US Cellular, an American company specializing in smartphones, managed to obtain 23% more visitors through e-commerce with predictive analysis of large volumes of data. It used data mining techniques, modeling, machine learning, and artificial intelligence to create an in-depth study focused on the future.
In the past, the company was not sure if it could improve the foot traffic of physical stores by merely increasing its online presence.
They discovered that for the average online customer, finding recent offers is more important than knowing product specifications. By improving the layout of limited-time sales and new launches, the company increased not only online traffic, but also sales conversions.
Why be a data-driven company
The best scenario for those who want to take advantage of the digital age and transform their business is to make management data-driven.
Data-oriented management is using data throughout diverse business processes systematically and continuously.
Data-driven companies establish processes and operations to facilitate the acquisition of necessary information by employees and are transparent about access restrictions and governance methods.
A recent report by the Economist Intelligence Unit (EIU), based on a survey of more than 500 senior executives, mostly C level, indicates that companies that make decisions based on data tend to do better financially.
A similar study by Harvard Business Review found that data-driven companies make better decisions and increase profits and become faster and more productive.
More innovation capabilities
Business models in which data is considered a valuable asset, and is even used to generate products and services, also tend to be more innovative.
Data integration is what makes startups so disruptive, and this potential can be exploited by traditional companies as well, and in the most varied market segments.
Capturing, analyzing, and monitoring information such as sales data, industry trends, news, and social media activities also helps with strategic medium and long-term planning.
In addition to the predictive analysis that can be performed continuously with specialized tools, business executives’ analytical capacity also helps them visualize how their decisions will resonate in the future, increasing competitiveness, especially at higher levels.
How to build Digital DNA in your company
Here are some tips on how to build up Digital DNA within your company with full awareness, aiming at tangible results.
Invest in talent
Searching, developing, and retaining talent is a significant challenge that can hamper digital strategies’ success.
From small startups to multinational corporations, organizations must be prepared to adapt to create an environment that continuously attracts and engages digital talent.
Invest in tools
However, a talented workforce won’t be enough if people don’t have the right software, apps, and digital equipment.
The good news is that it’s getting cheaper to buy digital solutions. It’s also much faster to implement and use them effectively. For example, with cloud computing, most technological resources can be acquired and used virtually without the need to make profound changes to the internal IT infrastructure.
Seek expert help
Finally, some practical advice: seek expert help to turn the key and transform your company digitally.
The fresh eyes of a consulting agency, for example, can help your business find and take advantage of opportunities, not visible to the naked eye. Choose partnerships with companies focused on innovation and digital transformation. The expertise brought by these organizations will surely be a game-changer in your business.