Why You Need To Drive Your Business Performance With Data
General Electric (GE) is widely considered to be one of the best-managed companies in the world. For starters, one reason it can achieve this is its concerted efforts to develop outstanding managers. It doesn’t stop there, it goes all the way to help manage and improve the decision-making, business, and leadership capabilities of all its managers. GE’s top management improved the company’s business performance by enabling their managers to identify what they call workout- a process where managers and employees come together to confront issues as they come in, pinpoint the problem, identify the cause and proffer solutions, all of which are enabled from analyzing data.
Workout is GE’s method of helping its managers to diagnose a problem and try to solve it without escalating it to the board. Of course, this will improve business performance.
Today’s business world is moving at a pace that we have not seen before. If you are a business owner or you work for an organisation, you need to be familiar with a bunch of new technologies for better efficiency. Your business performance is dependent on how well you can transition and jump on trends that have proven successful.
Market leaders have found a way to exclusively corner the data factor. It may shock you to know that this singular factor has proven to scale up their businesses so much that their dominance is untouchable as it were. This factor, if wielded properly, has the potential to single-handedly deliver the biggest cakes to the organization.
Efficiency Trumps Mere Brilliant Strategies For A Great Business Performance
Efficiency trumps all the brilliant strategies put together. You can have the best strategies but if they are not efficient enough, you’d probably have to dump them and try other ones. When firms strike new ways to market their products and they succeed at it, they can spark buyers’ interest, increase product differentiation, lower unit costs, and even widen industry demand. The competitors of this firm may have to revisit their strategies. However, if the competitors do not have information on what the succeeding firm is doing, it may continue to move in circles.
Over the years, statistics have shown that rivalry is stronger in slow-growing markets and weaker in fast-growing markets. The logic is simple: in a fast-growing market, the buyer demand is astronomical, and a company will probably have to struggle to keep up with demand, let alone try to devote time to competitors. The reverse is the case in a slow-growing market, as each company will need to devise strategies to take a larger share of the market. This is where data analytics can be helpful to enhance business performance.
What Does Data Driven Mean In Driving Business Performance?
When you refer to a data driven company, you are saying the company is dependent on data to scale. Data is the engine of any organisation (every company has data), however, how the company utilise the data also has a role to play in the business performance. It is like knowing that without the engine of a car, it won't function and still deciding not to lubricate it, when it is functioning for some weird reasons. You are going to get a knock and may even cost you more.
For all that matters, the strong firm may only have keyed into data analytics. From the data they collected and analysed, they were able to see their weaknesses, see what they need to revamp and explore new opportunities based on the “truth” of the data analytics. A business is on top of its competitors because it has found ways and methods to do things faster, cheaper, and better.
A company is said to be on top of its competitors when it is insulated from competitive pressures and somehow shifts the competitive battles in its favour. Do you know that "cookies," a once upon a time strong marketing tool that can help marketers create identical audience profiles for target marketing is slowly dying? You don't need a soothsayer to tell you that the world is becoming privacy-driven and you will need some 'cookies-free' solutions to obtain data. Perhaps, your competitor has realised this. One of the ways to achieve this is the utilization of data. So, how can businesses benefit from data?
How Businesses Can Benefit From A Data-driven Culture
Data is as important as any other thing in a business. A company needs to collect data, and not just stop there but go ahead to analyse these data. It is through the lens of data, they get to see the anomalies and try to correct them.
Data analytics is crucial to a business's performance and it would be unfortunate if anyone thinks otherwise. From financial planning and analysis to accounts receivable and invoicing to customers’ engagements, all of which are crucial to the growth of a business, data analytics is vital. Organisations must imbibe a data-driven culture where individuals’ expertise is hinged on data analytics already provided. Products from Periculum are sure to help you navigate through this.
At Periculum, we are concerned at how your business can benefit immensely from the datasets you have. You need clearly defined tools that will help you navigate through data you have obtained and show you what you may not have observed affecting an aspect or aspects of your business, or to even reduce risks. If any of these describes you, then our products are designed for you.