Natasha Joslin is the founder of MoJo and is focused on delivering impact using data. She is passionate about helping people and teams become more comfortable with using data and exploring different approaches to help solve problems and make decisions daily.
This article features insights from the Data Chats podcast episode featuring Natasha Joslin on how organizations need to bridge the gap between data teams, tech teams and business teams in order to get value from their data.
“Where is the data going?” may seem like a funny question, but data has become part and parcel of our lives. We breathe data. From marketing to product development, leveraging data has become the key to success for several businesses. Still, not all businesses use data in the same way or for the same purpose.
To try and understand data as a tool for business growth, we have to go back to the fundamentals—leveraging data. What does leveraging data mean? And how can businesses create a data strategy that works for them?
Leveraging Data
Recognizing that “data” is not a one-size-fits-all solution is important. Different businesses have different needs for data.
Data can be used for a variety of purposes, depending on the nature and needs of the business. For example, data can be used to identify customer preferences and trends, allowing companies to tailor their products and services to better meet customer demand. Data can also be used to inform marketing strategies, such as segmenting customers into different groups or developing personalized messaging. Additionally, data can be used to understand user behavior and gain insights into how customers interact with a product or service.
Now, how can businesses create a data strategy that works for them?
The key is to start with the business itself. The business needs to know what it wants to achieve and what data it needs to achieve it. A successful data strategy should encompass all parts of the business.
For example, a marketing-focused data strategy might focus on building a customer database and tracking customer interactions. It might also focus on harnessing that data to make better decisions about where to invest marketing resources. At the same time, a health-improvement data strategy might focus on codifying patient data to better identify health patterns in a population.
But it is important to remember that data is an enabler, not a magic solution. Data can only support the business; it cannot change it. So, businesses must start with a solid understanding of their objectives and how to use data to achieve them.
The Power of Customer Data
The next part of understanding data about your business is understanding your customers. They’re the core of leveraging data. It’s all about how one can use data insights to push customers to drive growth in your business.
For many businesses, transitioning from product development to a customer focus is a crucial turning point. This means using data to analyze customer behavior, preferences, and needs. As a business owner, you likely have many questions about your customers. Who are they? What are they buying? And how can you get them to buy more? These questions are all critical to growing your business, but they can be difficult to answer without the right data and tools.
Once you understand your customers, you can use that information to tailor your offerings to meet the specific needs of your target market. With this, you can set yourself apart from the competition and become the go-to choice for your customers.
But data isn’t just useful for understanding your customers.
There are countless other ways that businesses can use data to drive growth. From identifying new markets to optimizing your supply chain, data is a powerful tool to help you stay ahead of the curve.
Challenges in Leveraging Data
Companies are gathering more data than ever before. Companies constantly look for ways to turn data into actionable insights to make better decisions. For instance, companies like Ok-Cupid and Tinder use data to determine matches, as well as the ads you can see when you swipe.
But as an expert, Natasha Joslin notes, there’s still a major gap between the data teams and the business teams. That gap needs to be bridged if companies will get the most out of their data.
She’s seen this gap firsthand, having worked in large advertising agencies with big organizations that had plenty of customers and plenty of data. While the data teams and the technical teams were doing their analysis and creating amazing platforms, that data wasn’t actually translating into the business. So, there’s a big need to build a bridge between both sides.
But it’s not just about bridging the gap between the teams; businesses also need to improve their data literacy. Data needs to become the everyday currency that supports the business function. And that means everyone in the business needs to understand how to use data to make better decisions. It’s not just about identifying opportunities; it’s also about identifying where things aren’t working as well as they could be. With this understanding, businesses will end up turning data into insights.
Turning Data Into Insights
Here are three ways to take your data to the next level.
1. Use good data
To create effective business intelligence outputs, it’s important to start with quality data. However, simply having good data is not enough. Your data should be cleanly organized and easy to understand. Data quality is the measure of how well-suited a data set is to serve its specific purpose. Measures of data quality are based on data quality characteristics such as accuracy, completeness, consistency, validity, uniqueness, and timeliness.
There are many ways to improve data quality. For instance, if your data is spread across multiple files, it may be better to consolidate it at the source or plan for regular maintenance.
2. Know who will be using the data
Before creating a platform to provide insights, you should know which users within your organization will use the data platform. This is crucial to ensure that the projected business impact is realistically attainable.
Different users have different priorities when it comes to data. For instance, C-level executives may only be interested in the big picture. At the same time, managers may focus more on specific business drivers. Similarly, analysts may prefer to explore data independently, while business users may just want to consume the insights they need.
3. Maintain realistic workflows
To ensure that your analytics system is widely used, you should consider how your users will integrate it into their daily workflow. This will have the greatest impact on your business intelligence or analytics program.
You can make the adjustment easier for future users by embedding analytics into an existing system. This can eliminate the need for manual data collection and entry, streamline processes, and make it more likely that your users will take advantage of the insights available.
Looking to the Future: The Democratization of Data
People have long seen data as the domain of data scientists and technical experts. This leaves many business professionals feeling overwhelmed and intimidated by its perceived complexity.
This leads to a situation where data is seen as inaccessible. But things are starting to change. A new trend is emerging in the business world: the democratization of data.
What does the democratization of data mean?
The democratization of data means making data accessible to everyone in the organization. This access is given regardless of technical skills or expertise. It’s about breaking down the barriers between technical experts and business professionals, enabling everyone to use data as a tool to inform decision-making.
This trend is driven by the recognition that data is too important to be left in the hands of a few experts. With the rapid pace of technological change, businesses should be agile and respond quickly to changing market conditions. This requires everyone in an organization to use data effectively.
What are the benefits of the democratization of data?
The benefits of the democratization of data are clear. By making data accessible to everyone in the organization, businesses can:
- Make better decisions: When everyone has access to the same data, it’s easier to make informed decisions.
- Improve collaboration: Data can be used as a common language to help different teams work together more effectively.
- Increase efficiency: By automating data processes and making data more accessible, businesses streamline operations and save time and money.
- Foster innovation: Businesses can unlock new insights and drive innovation by encouraging everyone to use data.
What are the challenges of the democratization of data?
While the democratization of data offers many benefits, some challenges need to be addressed. These include:
- Technical skills: Not everyone in the organization has the technical skills required to work with data. So, businesses should provide training and support to help their employees develop these skills. Here is a course that can help data teams and business teams speak the same language.
- Data quality: Making data accessible to everyone can lead to issues with data quality. Businesses need to implement plans to ensure that data is accurate and reliable before diving into insights.
- Data security: Making data accessible to everyone raises concerns about data security. So, businesses need to implement robust security measures to protect their data.
The Future of Data Democratization
As businesses continue to embrace the democratization of data, we can expect new tools and technologies to emerge. This will include user-friendly data visualization tools. It will also include machine learning algorithms that can help non-technical users make sense of complex data. A good example of this is ChatGPT. This type of technology gives non-technical users access to highly technical skills and information.
Generally, the democratization of data shows an exciting new trend in business. When data is accessible to all and easier to utilize, businesses drive innovation and improve collaboration and efficiency.
Translate Data Insights into Business Strategy
As a business leader, it’s important to understand what problems you can solve with data and how to leverage your findings to make better decisions. Data Science for Business Leaders shows you how to partner with data professionals to uncover business value, make informed decisions and solve problems.
The world of data is moving fast. Understand how business leaders and data practitioners contribute at each stage of data projects to drive results that have a real impact on your organization.
