What is the data-driven approach?

29 Jul 2022

What_is_the_data_driven_approach_about?

In the face of the proliferation of information, otherwise known as big data, many companies rely on data analysis to make strategic decisions and improve their performance. A company that is driven by data is called a data-driven company. What is the benefit of a data-driven company and how can it be implemented?

 

What is data driven?

The term data driven describes any organisation that is data driven or data centric. A data-driven company uses data analysis technologies to guide its organisation. Strategic decisions are then based on data, rather than intuition, experience or the external environment.

 

What is data driven for?

Deploying a data-driven approach enables a company to obtain relevant and reliable information on the chosen business strategies. This approach offers a global view of the organisation and immediately available information. With data driven, databases are centralised and accessible to all decision makers. A data-driven company is then able to use the right data at the right time to make the right decisions.

As a result of the digital transformation, companies are collecting various data from connected objects, social networks and websites. The use of data-driven information also provides insight into customer behaviour, competition and market trends. Access to this data helps companies to anticipate consumer reactions in order to improve customer loyalty and experience.

Data driven is also proving its worth in predictive analysis. To predict trends, we can see that artificial intelligence is gradually becoming part of the daily life of companies. This is an opportunity for data-driven companies to benefit from the rise of AI and integrate it into their data governance.

What are the areas of application of data driven?

The data-driven approach applies to a large number of areas, some of which may be specific to particular sectors of activity.

Data driven marketing is a strategy from the field of digital marketing that involves analysing data to make targeted decisions around a customer. This application predicts future consumer actions.

Data driven learning focuses on language learning. This application considers that words are data. Unlike a traditional form of teaching, the student analyses how a sentence is formulated and is able to implement the words of the language being studied.

The data-driven company integrates data at all levels of the company and exploits it in real time to facilitate decision-making. This strategy requires employee training, reliable data and the implementation of business intelligence tools.

Data journalism helps to identify information that traditional journalism would miss.

Data-driven security uses data to apply it to IT security. This application automates production in order to optimise security.

Many, many industries are taking advantage of data-driven decision making. And it is becoming an important asset for large companies.

The data-driven approach: a major challenge for companies

 

Today, it is essential for any company to place data at the centre of its development strategy. In the age of digitalisation, data analysis is becoming a real growth lever within a company's key businesses: marketing, HR, finance and logistics.

In marketing, data processing and rapid decision-making have a strong impact on the way employees work. The time saved can be used for higher value-added tasks such as contact/prospect management, customer knowledge, and A/B testing to improve the product or service.

HR departments also benefit from adopting a data-driven approach. By using relevant data, this approach can optimise recruitment processes, facilitate the integration of new employees and improve onboarding. In addition to controlling costs during a recruitment campaign, data-driven recruitment can help to provide a better employee experience and thus promote productivity.

How to develop a data-driven culture in your company?

 

Becoming a data-driven company is often a long process that relies on several essential elements.

The company must have sufficient data available. It is not enough to collect the data, it is also necessary to be certain of its validity and to process it using high-performance collection tools, so that it becomes intelligent and usable data.

The data-driven approach involves major changes. It is therefore necessary to involve all employees at the heart of the company's reorganisation and to make them aware of the importance of data driven. On the management side, it is important to have decision-makers who know how to analyse and interpret the available data.

It is recommended that the company put in place all the human resources and tools required for the project during the transition period. To do this, the company must have in-house technical expertise in data science in order to be reactive to data issues.

How to train in the data driven approach?

 

The MSc Manager of Digital Transformation enables students to acquire technical skills related to the management and exploitation of data and to learn about the data driven approach. This master's degree also provides business skills in terms of steering and managing a company. Future graduates will be able to analyse and translate data input into strategic recommendations.

The data driven culture is as important for start-ups that are launching themselves on new markets as it is for large companies that wish to conquer new markets. If you are interested in the application of data driven for the HR and marketing sectors, do not hesitate to find out more about IPAG's courses: Master in Human Resources Management & CSR and MSc Digital Marketing & Data Analysis.