“I used to believe that culture was ‘soft,’ and had little bearing on our bottom line. What I believe today is that our culture has everything to do with our bottom line, now and into the future.” —Vern Dosch, Author, Wired Differently
Enterprise organizations are relying more and more on analytics to compete, get ahead, and stay ahead. Those disrupting industries are not only embracing analytics, but deftly creating a culture of data and customer centricity—and using their insights to deliver on innovative customer experiences and business models. A recent tweet observes:
Netflix did not kill Blockbuster. Late fees did. Uber did not kill the taxi business. Limited access and fare control did. Amazon did not kill other retailers. Poor customer service and experience did.
These companies are all examples of what Forrester calls “insights-driven businesses,” firms systematically harnessing insights across their organization and implementing them to create a competitive advantage based on customer wants, needs, and convenience.
All organizations strive for this. In the 2018 Global State of Enterprise Analytics Report, 90% of analytics and business intelligence professionals surveyed say that data and analytics are key to their organization’s digital transformation. Those seeing success also say that creating an analytics strategy and developing a data-driven culture are the two efforts that have had the most positive impact on their initiatives.
Are We There Yet?
While more and more organizations are embracing analytics (71% say they plan to invest more in analytics over the next five years), many are struggling with integrating it into the company’s culture. In fact, in listing the barriers to more effective use of data within their business, limited access across the organization was one of the top two challenges.
According to the State of Enterprise Analytics Report, only 16% of enterprise organizations can say that more than 75% of their employees currently have access to company data and analytics. And while 84% of management teams and 78% of executive teams have access to their organizations’ data and analytics, 48% of the organizations’ front line employees do not.
For customer-facing departments like sales and service, this lack of contribution and collaboration on customer needs and feedback—and awareness for real-time decision making—could significantly impact business transformation and the bottom line. When all employees are engaged in a customer-centric and data-centric culture, change, improvement, and ideas around better customer experiences and new business models are more likely to occur.
Can We Get There Faster?
According to this year’s survey, respondents say embedding organizational analytics into popular business applications like Salesforce, displaying relevant data on screens throughout the organization, and distributing analytics via email and on devices would benefit in democratizing data and developing the culture around it.
In a guest blog, analytics and digital transformation influencer Ronald van Loon also offers these five tips:
- Have a clear vision
- Establish data accessibility
- Foster interdepartmental collaboration
- Maintain your data
- Implement a rewards system to encourage use and competition
According to the McKinsey Global Institute, data-driven organizations are 23 times more likely to acquire customers, 6 times as likely to retain customers, and 19 times as likely to be profitable as a result. Organizations focusing their 2020 (and 2030) vision should ensure that they have built or are building a data-driven culture focused on the customer—and set to take fast and full advantage of all the insights their people and technology provide.
To read more enterprise analytics survey data around culture, challenges, benefits, and investment priorities for data-driven organizations, download the 2018 Global State of Enterprise Analytics Report. To learn more about how data and analytics can transform the customer experience and accelerate growth and new business model creation, get MicroStrategy’s 18-page Q&A eBook featuring key insights and advice from analyst, Global 2000 adviser, and Disrupting Digital Business author Ray Wang: The Role of Data in Digital Transformation.