Data is king 👑 for building the right strategy. Challenges are around the corner 🙀
Data-driven decision-making is key for growth. Data related to consumer behavior, cookies, or payment methods are insights to give the clients products and services ad hoc to their necessities and their willingness to pay. Companies could adapt to the market changes through data.
Companies have statistical methods to analyze that data amount. Random forest or multilinear regressions are some models to crunch data to align strategies. In a market with multiple relevant variables such as weather, competitors, complement products, and marketing, among others, it could be difficult to find the right variables which will give the north star for the business.
Gut-feeling companies have a lot to catch up with data-driven companies. It is not just required to get the data or the models, it is important to have a clear data understanding to choose those variables able to move the needle.
But in a data-driven company, data availability is a big issue. Here are some relevant barriers that the industry is facing:
- Cultural change: The information serves very little time due to the dynamic society. 92% of executives pointed out that cultural obstacles are the main barrier to becoming data-driven
- Unstructured data: 80% of all new data is not easily captured or trackable, such as sensor data, pictures, or sentiments. These are difficult to capture and analyze to create ad hoc business strategies
- Data volume: Tech companies could track every detail of the user interaction with them. Its collection is complicated and storage is expensive. There is a trade-off that companies face between collecting all data over time or just the relevant variables.
- Ethical data: Regulation to collect data is increasing. EU now requires users can opt-out of cookies and companies like Apple or servers such as Brave now allows users to block trackers.
Until now, just 26.5% of organizations report having established a data-driven organization.
Fail fast, learn faster
To get immersed in data-driven technology could be so grateful for companies to gain insight and knowledge to obtain market share. Leaders should focus on the long term based on the results from their previous strategies. Technology became data a business asset. Now being a data-driven organization is basic to survive.
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