Innovation Trend #2: Data-driven Decisions
By Kirsten Butzow, Pragmatic Institute Instructor Data is all around us. We have the capacity to track and quantify anything we want. The issue is not whether we have access to data, but what we do with all that data. How do we turn it into actionable decisions and leverage it to build innovative products that resonate in the marketplace? The Right Data If you have any doubt as to the profusion of data, just look at the increase in Big Data vendors. In 2014, they generated $30 billion in revenue, and that is expected to increase to $76 billion by the end of 2020. The amount of data and its accessibility has fundamentally changed the way we do business. Data sources like A/B testing, Google Analytics and product usage information are embedded in products. Yet, despite all of this data, so many of our products don’t seem to hit the mark upon release. It’s certainly not because we don’t have data. It’s because we aren’t using it well—and, perhaps, because we are so focused on “Big Data”, we are often overlooking the impact of Little Data. A decade ago, we could easily observe our customers walking around our stores and making decisions. But today, so much of our customer interactions are online and via mobile apps. We’ve reduced our customers to bits and bytes—so, we have lots of data, but no real information. If, however, we answer a few key questions, we can make that data actionable. What Story Does your Data Tell? For data to drive actionable decisions, we need to first be able to turn our data into a story. Ask yourself: Do you understand the story your data is telling relative to how your customers use your product throughout the product lifecycle – from customer acquisition to implementation and on-going support activities. In other words, do you know:
- How buyers engage with your company?
- When, how and why customers use your products?
- What overall customer experience are you driving?
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