According to Gartner, by 2021 the role of CDOs (chief data officers) will become “a mission-critical function comparable to IT, business operations, HR, and finance in 75% of large enterprises”. As new linchpins in their company’s digital transformation journey, the modern CDO is a data innovator who acknowledges the importance of a data-driven strategy within the enterprise. Optimizing customer and employee experiences, automating internal processes, and leveraging suitable data governance programs don’t just increase productivity, but also help drive revenue growth and increase ROI.
What does a data-driven strategy imply? Leaving aside the use of different tools and applications, being data-driven is mainly concerned with integrating analytics and data within your systems, business strategy, and overall company culture. As opposed to traditional enterprises, organizations that are data-driven grow exponentially, not linearly, and the best example, in this case, is Google; a company with a whole business model built around exploring and exploiting information.
In this article, we will tackle some of the core benefits of using data in the workplace to increase efficiency and improve retention among employees, as well as drive real growth and get the most out of your processes with data-driven insights.
Establish a data governance program to increase efficiency
Data governance can be described as the overall management of integrity, usability, security, and availability of data within the enterprise. Organizations can reap great benefits from setting up a data governance program because it guarantees that data is reliable and consistent across all departments. As more and more companies depend on data analytics to optimize operations, make business decisions, and develop new products/services, harmonizing all gathered information helps break down silos through the development of collaborative processes.
From an organizational perspective, one of the main perks associated with establishing a data governance program is operational efficiency. Considering that we live in the digital world of business, company owners must acknowledge that data is incredibly valuable. As a consequence, it should be treated as an asset. In manufacturing, for example, businesses must constantly guarantee that their production-line equipment goes through regular maintenance, inspections, and upgrades to make sure additional processes related to operations work smoothly. In this case, data governance relates to understanding where your data is stored. Implemented correctly, data governance provides a comprehensive overview of all data assets.
Energy holding company Southern Co markets, trades, generates and distributes both gas and electricity. The company uses coal, gas, solar, hydro, and other biomass sources to produce power. To keep a close eye on its 2,200 models across its power stations, Southern Co implemented Schneider Electric’s predictive analytics technology Avantis PRiSM to preserve data quality reliability and lower unexpected maintenance, thus saving around $4 million in performance efficiency.
Also read: Big data, what's the big deal?
Use data insights to improve employee experience, recruitment & retention
Modern organizations are in dire need to attract, grow, and retain top-performing talent. Hiring the right people, creating a collaborative culture, and preserving engagement are company goals that can be attained when data insights are put to good use.
The next generation of employees expects a positive workplace experience centered around flexibility, comfort, and opportunity. Out of a myriad of tools that can help automate processes and streamline operations to increase productivity, making that final choice is rather challenging. Start with an employee feedback tool to measure performance and satisfaction in the office.
OfficeVibe, for example, is an online platform that helps organizations design specific employee pulse survey. The goal is to gather the data and work towards improving employee engagement and team efficiency. With Officevibe you can send weekly surveys and start conversations on the platform to gauge results into reports that can be shared and used to make the necessary internal improvements.
An organization’s most critical department is HR, and according to Grand View Research, the HR software market is expected to reach $10 billion by 2020. Through the use of advanced analytics companies can eliminate organizational blind spots, gather real-time data to provide/implement feedback, and ultimately, increase their return on investment. For employee experiences to be successful, they need to be data-driven. The right tools enable HR to deliver results, keep employees engaged, drive performance, and preserve productivity on the floating line.
Multinational investment bank Goldman Sachs recently revamped its employee engagement strategy by adopting a more data-driven approach to improve business results. In an interview with Forbes, Dr. David Landman, managing director for Goldman Sachs, explained that the new approach is fact-based, innovative, and necessary to understand employee feelings. By partnering with management software Qualtrics, Goldman Sachs got closer to its employees by creating tools to help managers their teams.
“We partnered with Qualtrics to design a survey that helped us understand what’s most important to Goldman employees when thinking about us as an employer of choice, but also give managers a better way to understand what’s happening within their own teams and democratize the data so they can become better leaders.”
Revenue growth with data-driven insights
In general, organizations measure success by analyzing their customer base, bottom-line results, and sales figures. In simple terms, data analytics helps them reshape customer interactions so that they can market more productively, ultimately drive sales. A data-driven culture sets digital natives aside from their counterparts. As a consequence, it is vital to implement data initiatives based on cross-functional collaboration among all teams and departments.
For an enterprise to become an agile business, it needs to understand that leadership and company culture work hand in hand. Both support innovation, while also spreading data literacy through new ideas. Employee and customer needs must be properly aligned for data analytics to work as efficient productivity tools.
For example, Fintech insurance company Lemonade jumps on a journey to disrupt the industry with AI. Featuring an app-based customer experience and wizard chatbot Maya, Lemonade creates tailored insurance policies and file claims with just a few taps on the screen. To evaluate claims, the app uses big data and AI, stating to settle a claim from approval to payout in as little as 3 seconds. Dominated by industry leaders in insurance with decades of experience, Lemonade stood out with data-driven culture, as well as a transparent business model that helped the startup raise $300 million in a funding round.
Industry studies predict that a company’s path to digital transformation is paved with both challenges and opportunities. Digitizing the workplace involves both employers and employees who must adapt to current trends in order to succeed. While workers will have to perfect their skills to keep up with the pace, companies will have to implement new technologies into their business models to track and trace progress, ultimately increasing productivity and ROI.
With data lying at the core of most internal processes, enterprises must learn to use the right tools and the best technologies to make improvements. Whether it’s AI, big data, machine learning, or NLP, automating internally brings visible external benefits. Improving employee experiences with data analytics brings companies one step closer to increased revenue growth, improved customer satisfaction, and ultimately, a results-driven agile business.