5 min read
Making Data-Driven Working Actually Succeed
We've written before about how data-driven working is a useful, and sometimes necessary, development for many organizations to keep up in the market. And that there's a lot of advantage to be gained from smartly deploying data in your business processes is by now hardly news anywhere. So why do so many companies still struggle with data-driven working? Simple: too much focus on the technology. That may sound a bit strange, because a good technical solution is essential to work data-driven successfully, right?
Your goal
Yes and no. Of course the benefits of data-driven working can only be unlocked by applying the right technical tools. But whoever starts there is actually missing the most important step: your goal. The decision to start working data-driven is much more than just an investment in technical tools. And technology may make your transformation possible, but it's an illusion to think that nice technical tools will change the way you work. That change begins at the heart of your organization: your business. Sales, operations, or production need to see a clear benefit from data-driven working. Because who else are you actually helping?
IT department
Unfortunately, at many organizations data-driven working is seen as something that just needs to be facilitated by 'IT', with the result that all kinds of beautiful technical solutions get built that unfortunately barely pay off. Of course the IT department is happy to work data-driven, and the finance department is usually convinced fairly quickly too. But how much money do you actually make with that? Most companies don't earn their money in the IT or finance department. So if you really want to make a difference with your data application, you'll need to connect it to your revenue model.
If, as an IT manager, you approach your sales or production department with your shiny new tool, you won't always be welcomed with open arms. Because of course they already have a pretty clear idea of what they'd actually like, what could be improved, and what they need. But those things were already not right in the old situation, so why would a new tool solve them now? As an IT manager you naturally take a constructive approach to this, so you try to formulate the 'business requirements' together with the business to map out their needs.
Unfortunately: that thorough, systematic approach gets stuck. It costs the business too much time, results don't come fast enough, and the whole data-driven working initiative loses momentum and inspiration.
What went wrong?
What went wrong? You asked your business a technical question. And your business answered by telling you what they didn't like about the current technology. The possibilities of data-driven working weren't discussed, and looking at how we could improve the revenue model didn't happen at all.
The approach from the technology side unfortunately often results in old wine in new bottles. Or as Henry Ford is said to have once put it:
“If I had asked people what they wanted, they would have said faster horses – Henry Ford”
That doesn't mean we're saying you shouldn't ask the business what they want, but how you ask matters a great deal. And what you ask about matters just as much. If you start by asking what they need from the technology, chances are you'll get a list of desired improvements over the current situation.
Data strategy
It's important to realize that data-driven working first and foremost requires a change in the way of working. What that change should look like, you describe in your data strategy. You discuss what the possible applications of data will be for the future of your organization, and how data can help improve, speed up, or simplify processes. In short: how data will help improve or strengthen your revenue model. Only once that application of data is a clear goal on the horizon does it become useful to start talking about the technology needed. Not starting from a tool, but from functionality. Because do you really need all those lists and reports? Or can the new way of working achieve that same benefit differently? Look at your processes again in light of the data you're going to use, and you'll naturally discover all kinds of opportunities to optimize further. Only once that entire objective is clear do we look for the right technology to match it. Based on your new requirements, so you avoid simply reconstructing your entire old landscape in a new jacket.
And of course we'll then really get to work on the technology. Because that technology is ultimately the only means to make data-driven working possible. But without a goal, even the best tool is unable to make your organization data-driven.
Want to know more?
Curious how we can help you with this process? You can read more about it in our ebook 'Data-Driven Working' via the link below. Or would you rather have it explained in a quarter of an hour? Then check out our data-driven working webinar.
Written by Louis de Roo
Data Strategy Leader