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Data Driven Companies: what are they and how do they work?

Data Driven Companies: what are they and how do they work?

A commitment to a Data Driven culture allows companies to steer their objectives in the best strategic direction. Find out why!

Data plays a fundamental role in the digital era. Although it is not enough to have it, you also need to know how to measure it, interpret it, and orient it to results. 

Companies with a Data Driven culture, or data culture, know exactly what we are talking about. Do you? We explain it in detail below. 

What is a Data Driven company? 

Data Driven companies are companies where information is everything. Where data becomes the key point of the processes and the way to achieve the objectives. 

You may be thinking that all companies need data to survive. And you are right. However, the treatment of data in a Data Driven company versus a non-Data Driven company is done very differently. 

First of all, to be a true Data Driven organization it is necessary to use Data Science as the strategic core of the company. A science that relies on mathematics, statistics and computer science, Machine Learning, Data Mining and other processes, to collect valuable information from raw data.

With this information applied to the business as a whole, it is possible to obtain a global vision of a company's situation, thus being able to analyze vulnerabilities and opportunities with a very low risk margin.

What characteristics define a Data Driven company?

Data Driven companies use data to make strategic decisions. Even so, to achieve this consideration it is necessary to comply with a series of key characteristics. These are some of them:

  1. They perform data analysis using tools and operational frameworks involving Big Data.
  2. They base their processes on horizontal hierarchies. 
  3. They are omnichannel companies.
  4. They work on the basis of tangible objectives. In this way, it is possible to know which processes are working and which ones need to be changed.
  5. They use innovative analysis tools necessary to adequately monitor and control KPIs.
  6. They have the latest technology and data experts to process information in real time
  7. They promote transparency and the democratization of data in all areas of the company. 
  8. Implement cybersecurity solutions in all processes, especially if it is an e-commerce that has payment gateways in which your customers will include sensitive banking data. 

With the fusion of these features, Data Driven companies can optimize the company's resources, detect market trends at the right time and make decisions much more efficiently and quickly than in a traditional company.

Data Driven and Big Data

Big Data and Data Driven are often confused. The truth is that both concepts feed back on each other, but they are independent. Broadly speaking, Big Data is the tool with which unstructured data is transformed into information. 

When information is used in the right way to steer the overall direction of a company, we will say that we are ascending to a Data Driven culture.

For a company to be able to work with large-scale data, it is important for it to have large volumes of information (collected, processed and analyzed thanks to Big Data), professionals and tools capable of guiding them towards the improvement of decision-making.

Data culture: how to become a Data Driven company? 

Knowing where we are and where we are going

Are you starting from scratch? Keep in mind that achieving a Data Driven culture requires setting a series of strategic objectives to be achieved in each key area of the company and, to do so, it is necessary to know where the company is, what its reality is, what its strengths and weaknesses are. 

With this, we will be able to set certain goals when it comes to orienting our culture to data. The periodic measurements carried out by Data Driven companies will allow us to know if the strategy is going in line or, on the contrary, an alternative way must be found. 

2. Have data storage and processing infrastructures.

A Data Driven enterprise needs open, flexible and scalable data storage and processing infrastructures for further exploitation.

The use of such infrastructures will depend on the specific needs of the company: on-premise or cloud. The difference between the two environments is that the deployment of systems and applications in the cloud is carried out in virtual data centers managed by an external provider. 

3. Knowledge extraction

The biggest challenge. The reason? The immensity of existing data. The first step in extracting value is to determine the veracity and validity of the data, known as Data Quality. Here we will separate the information that serves to achieve operational objectives. 

Therefore, it is important to establish data control and cleansing policies to ensure the accuracy, security and validity of the data. 

4. Create a Data Governance policy

Data Governance is one of the fundamental pillars within a Data Driven enterprise. It is a set of rules, standards and policies that ensure data integrity.

Broadly speaking, Data Governance defines who can make a decision, about what data, in what situations and using what methods. A well-designed Data Governance strategy is a must for any organization working with Big Data.

5. Set up a team with data-driven skills.

Data is the main asset of Data Driven companies. Therefore, it is necessary to recruit talent based on this in this area. At this point, there is room for profiles such as: Data Science specialists, data architects, Chief Analytics Officer (CAO) or Chief Data Officer (CDO).

The world is changing and, with it, the educational offer. Currently there are multiple university careers oriented to aspects related to Artificial Intelligence, Big Data, Machine Learning and other variants. 

In our case, Konecta Digital MK Agencywe have a Data Driven culture, 100% data oriented. Everything is measurable. We work with self-developed Martech tools and we have the best trained professionals in the market. 

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