This custom business software provider in Vancouver, Canada, wants to emphasize the power of automation and data analytics in any business - that data science, once understood and implemented well with other business processes, will scale up businesses to a maximum impact.
The findings of such a digitally-led study revealed three major structural challenges that somehow prevent businesses from scaling up.
First, companies commonly separate business execution and data science when it should not be the case - both should be utilized and analyzed simultaneously in order for an organization to achieve maximum business impact.
Second, the grueling struggle of proper implementation - many businesses often have a huge gap between insight and impact.
Third, most businesses do not have top-notch executives who are deeply committed to data analytics - this results to a plummeting organizational commitment and performance as data analytics is barely even given importance in the culture of the company.
The issue at hand was that every single day, data availability is drastically increasing - computing power is on the rise, data science and other mathematical techniques are continually advancing. This brings a huge opportunity to businesses although a little daunting when it comes to utilizing data to scale up to the maximum.
Now, some major businesses may see the significance of data analytics but they are not invincible to the challenges of technology and data integration with business processes. Therefore, the “Insights Value Chain” has been developed so that every business can strengthen each link inside the chain - by doing so, companies will be able to use data and unleash its utmost potential.
The Insights Value Chain
The Insights Value Chain consists of two components: business and technical. Business components include processes and people with non-technical talents. On the other hand, technical components consist of information technology, data, analytics of algorithms, and people with technical talents.
The research objective was to support and develop the hypothesis that a business is “only as good as the weakest link in its ‘Insights Value Chain’ (N. Mohr & H. Hürtgen, 2018). Thus, if businesses utilize data effectively along with other non-technical and non-data related processes, many companies will scale up to their maximum potential.
In line with this, the researchers provided five guiding principles when it comes to scaling and implementing data analytics.
First, data analytics is not just a mere tool - it is an innovative way of tackling business difficulties, it serves as a new language.
Second, companies should get “translators” because they are crucial to the business - people or software tools that can help business and technical personnel to effectively communicate.
Third, changing the management is also crucial because it enables people to act upon data findings and it establishes trust in data analytics.
Fourth, for a company to achieve success at a large scale, the IT department must always be involved.
Fifth, a fast paced yet careful process must be maintained so that when things fail, they fail fast and the business can quickly recover.
Now, to achieve the massive and long-term scaling of a business, there are five recommended strategic actions to take.
The first recommendation is that the company must identify business use cases that are relevant and then develop data analytics as support.
Consequently, accomplish the identified and chosen top three business use cases that have the greatest impact on the business, or perhaps those fastest or easiest to implement.
The third recommendation is to construct the IT systems fast and support it in a simultaneous manner in order to quickly get solutions that are data-driven.
Furthermore, growing companies should ensure to hire competent staff so owners or executives can properly integrate the business team and data science - by doing so, the whole team can test and prove feasible ideas.
Lastly, prepare to scale - organize an internal analytics academy and a data analytics unit in order to increase the quality of the company’s data analytics.
Overall, the study has outlined the huge and increasing potential of data and its growing importance, especially when properly analyzed and utilized. Also, the processes of the Insights Value Chain - both upstream and downstream have been detailed and the fundamentals were described. Most importantly, the best perspectives and practices on achieving significant business impact while developing insights-based value were also introduced.
Anyone who is interested to read the full text of the study can access it here.
Businesses who want to scale up with data analytics can start here.
Neo Code Software is the largest independent FileMaker developer in Western Canada, with offices in Vancouver, BC and Toronto, ON. In addition to being a Platinum member of the Filemaker Business Alliance and experts in the custom software development business, Neo Code offers a wide range of services, from design, development and testing to network administration, training, systems analysis, technical consultation and troubleshooting.