7 Simple Steps to Transform your Business with Data Analytics

7 simple steps to help you jump start this process:

1. "Start from the Top" for data driven decision making
2. Get the right people as change agents
3. Embrace 80/20 rule
4. Solve one problem at a time
5. Successful execution is key
6. Utilise data for decision making not as a gimmicky marketing tool
7. Don't just buy the software or the hardware, rather look for long term strategic partners to apply business knowledge

Ever wondered how a successful organisation lives and breathes everyday?

Ever wondered what is it that makes an organisation superior to others?

Ever wondered how organisations leap forward from being reactive to proactive?

Is it the people? Is it the business model? Is it the opportunity in the market? Is it the insight they have about their business? Well there is no single answer but there is one common thing that guarantees success - it's completely dependent upon the inferences and the skills involved in studying your data (numerical reports, financial, macro economics etc) and coming up with meaningful action items day in and day out. I repeat day in and day out. There is no single day where your business might not have been affected due to internal or external factors.

So how would you keep track of things?

Your answer - we have everything? We know it? We have people doing it for years. We go by intuition, our gut feel. We have hundreds of reports, we have a well thought out strategy for the next five years.

Well, do you really know the reasons why your business has been successful? Who are your star customers? Who is your next best customer? Why do they buy your products and services? Why are you doing better than your competitors and what should be done to influence your business in a positive manner?

Well let's see how to switch from cruise control to a more "data-driver" driven path to success:

1. "Start from the Top" for data driven decision making: The reporting structure is critical to drive change in an organisation. The decision making capability should solely lie with the highest authority for that organisation/division/business unit. Don't rely on complicated detailed reporting metrics to tell you the whole story. Begin by introducing the single most important dashboard to solve all the business problems for that division or unit. Improvise further in incremental steps and extend that across multiple domains as per your need.
2. Get the right people as change agents: You might have heard the story, yes we have done this, yes we know this. The truth is, you need business consulting skills and knowledge to solve a business problem effectively from end to end. Technical resources may struggle to connect the dots from strategy to delivery and miss some of the key selling points/deliverables to come out of this data analytics initiative. Having a holistic view is paramount to ensuring the right stakeholders are on board and engaged throughout the process.
3. Embrace 80/20 rule: You don't need the whole universe to solve a problem but a methodical approach and agreed scope for your data is key to come to the right conclusion. 80/20 rule works all the time. You only need that 20% of information on a day to day basis, so simplify your information base.
   
4. Solve one problem at a time: Solve the most important issue for that quarter to begin with and then expand this across other units to solve other problems. Stop the big bang approach and take one action at a time.
5. Successful execution is key: Success is directly related to that one action point that will generate the expected business benefit. Number of features or number of charts are not important. Get the best possible strategic delivery team and back them.
6. Utilise data for decision making not as a gimmicky marketing tool: Your customers are your asset. You should of course look to cross-sell/up-sell or open up venues that will enrich your offer to them thus generating loyalty/ client retention. But that does not mean that your customers will be expecting vouchers and a series of offers every time. That will drive you to the discount catch situation and for a leading brand, you might be perceived as a discounted brand. Customers will stop sharing information if marketing goes over the top, be it retail or banking or utilities etc. Rather invest in understanding customer behaviors and triggers for acquisition/retention/loyalty/profitability etc. You will win more customers eventually leading to increased revenue/profits.
7. Don't just buy the software or the hardware, rather look for long term strategic partners to apply business knowledge: A technology platform or a solution will not solve your fundamental business problem. For example, getting big data platform and writing few algorithms will not solve the problem unless there are tangible benefits attached to the output. You will need a trained eye to understand what conclusions/outputs need to be achieved and how these are then used for decision making. Once this is determined and applied, the process can become streamlined and automated. The software or hardware mechanism is merely a tool to help you achieve this.

Disclaimer:This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional advisor. While reasonable effort has been made ensure the accuracy of the information contained in this publication, this cannot be guaranteed, and neither KPMG nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication. Any such reliance is solely at the user’s risk.