In recent years, there has been a distinct shift in how companies across industries are doing business. There is, on one hand, the traditional approach and on the other, the newer data-driven business model which has gained the edge in competitive markets and offers significant advantages to the business owner. Traditional businesses are rapidly losing customers to their data-driven counterparts that use the power of insights to serve the customer better. Simply put, traditional businesses now must choose between going all in for data-driven transformation or face the prospect of extinction.
What is data-driven business?
Data-driven companies rely on a vast corpus of data to make their business decisions and run operations. The data is secured in one place and they can run a large number of predictive models to analyze the business in great detail. These analytics provide valuable and precise insights on what is working and what is not, to help the business leaders decide what path to take. Data-driven business strategies have shown to provide vastly improved and optimized outcomes not merely in the immediate future, but also for the long term.
There are multiple ways that data-driven companies engage with their data – for example, some could monetize the data via an information-sharing platform, others use data to drive marketing and sales, and so on. Conventional companies tend to adopt data technologies to improve or transform their existing business models.
Why choose data-driven business transformation
Traditional companies now face numerous challenges when they compete against data-driven companies. Their data is of inferior quality, vastly scattered throughout their systems, and require manual discovery, collation, and analysis to be of any use. They are unable to anticipate what customers want and which direction the business should take. Traditional business metrics can only retro-analyze past performance and cannot help making informed predictions.
Conventional businesses are now under pressure to not only get new customers but also ensure their loyalty. This means they must meet the customer where they are, via multiple channels and unify and use these digital data sources to provide a satisfactory customer experience. Customers now expect a seamless and highly personalized experience when dealing with any business, and those that fail to provide this risk losing a large chunk of their customer base.
Data combined with the proper analytics tools and platforms can help businesses not only better understand their customers but can also help them finetune their marketing campaigns, personalize the customer experience. A data-driven approach can help companies make better-informed decisions and streamline operations to improve the bottom line.
What is data-driven business innovation?
Contrary to popular notions, it is not just the tech companies that invest in data and insights. Large and small enterprises across industries can learn from the tech giants, use insights to inform
their business decisions, and become disrupters in their sectors. This means that data-driven transformation is not merely an IT-department goal but involves buy-in from the C-suite at the very beginning. For example, Domino’s Pizza has reinvented itself as a tech company that delivers pizzas, a strategic data-driven reorientation that has changed the way they do business. The goal of the transformation is no longer merely an ROI but entails a deeper dive into how the business can transform itself from inside out.
Data-driven companies are in it for the long haul. They aim to tap into data over time to improve their insight generation capabilities. They plan to build a large corpus of data to yield better insights over the next several years.
Business leaders who wish to gain an advantage in today’s new environment should consider investing in a data-driven business transformation. It is equally important to partner with a trusted IT services provider who can guide your path to data-driven transformation. Tricon Infotech has led the digital innovation of businesses across sectors for over two decades. Connect with us today to learn more about how your business can leverage the power of data-driven innovation.