Intellens Business Consulting Services Blog Series: Data Proficiency and DDDM.
Shailesh P Rau
Pharma Strategist | Brand Building Coach | Marketing Capabilities Builder | Data Proficiency Practitioner | Data Storytelling | Communication & Brand Storytelling
Blog 3: Building Data Literacy and Data Proficiency - Towards Making Data-Driven Decisions.
In this blog, we will discuss the importance of three important aspects of data analytics:
A. The need to be data proficient in the new gig-economy
B. What it means to be data - proficient and not mere data literate when making data-driven decisions.
C. The culture of Data-driven Decision Making in an organization.
Part 1: "Data Literacy" - A fashionable statement or a passing fad or "A Must - Have Skill" for the future?
Though the era of "Data-driven decision making" (DDDM) is well and truly upon us, quite often, one sees the converse in the world of business. Decisions are made rather empirically (more known as "gut-feel"), reasoned on past experience or on a series of biases namely "confirmation bias" or "anchoring bias" or even "framing bias".
A cross-industry survey of 3700+ practicing Indian managers across 14 different industry verticals in 2021 revealed that a shocking 87% were prone to any of these above effects when taking important business decisions rather than relying on the power of data. The situation is not vastly different and has marginally improved as we enter 2025.
Gartner defines data literacy as "the ability to read, write and communicate data in context, including an understanding of data sources and constructs, analytical methods and techniques applied, and the ability to describe the use case, application and resulting value." Poor data literacy is ranked as the second-biggest internal roadblock to the success of the CDO’s office, according to the Gartner Annual Chief Data Officer Survey. By 2023, data literacy would have become essential in driving business value, demonstrated by its formal inclusion in over 80% of data and analytics strategies and change management programs.
Further, Gartner states that data literacy is an underlying component of digital dexterity — an employee’s ability and desire to use existing and?emerging technology?to drive better business outcomes.
Now, apply the above stats to Indian Pharma. Our guess is as good as yours ! Only a handful of marketing and strategy managers as well as business heads rely on the power of data-driven decision making. This needs to change, and change fast. Being illiterate on the very concept of "Data Literacy" is sounding the death knell for the future.
As data and analytics strategies become integral to all aspects of digital business, being data-literate — having the ability to understand, share common knowledge of and have meaningful conversations about data — can enable organizations to seamlessly adopt existing and emerging technologies.
The Reality Check: Data Literacy and Proficiency are much underdeveloped in the Indian Scenario.
1. The Economic Times in its issue of?CIO.com?dated August 5, 2022 stated that CIOs in India find data-driven decision making pretty challenging. Businesses struggle to build a robust data strategy and create high volumes of data.. They struggle to cope up with ever changing demands, invest in proper tech solutions and create a culture of data-driven decision making throughout the organization.
2. Amit Sharma, CIO and Head - Partnerships of Cytecare Cancer Hospitals says that his experience has shown that regardless of the industry, less than 50% of the decision making is based on data, and which clearly shows that tons can be done in this space.
3. Despite tons of data being generated in the background through channels such as pharmacies, patients, hospital IT systems, the petabytes of existing data present real time challenges in driving decision making due to two clear reasons:
A. Lack of awareness of the right place for data visualization
B. Lack of understanding of the power of insights generation from the gathered data
4. To make matters worse, the lack of a mindset as well as the will to use data effectively in decision making are the biggest roadblocks.
5. Finally, the biggest reality check: 87% of Indian managers are still prone to taking business decisions based on either gut feel or past experience or series of biases (confirmation bias or anchoring bias or even framing bias) rather than relying on the power of data. This was a major finding from a survey conducted in 2021 across 14 different business verticals involving 3500+ respondents. Though not a comforting statistic, the situation hasn't changed much as we move into 2025.
Poor data literacy is ranked as the second-biggest internal roadblock to the success of the CDO’s office, according to the Gartner Annual Chief Data Officer Survey. 87% of Indian managers are still prone to taking business decisions based on either gut feel or past experience or series of biases (confirmation bias or anchoring bias or even framing bias) rather than relying on the power of data.
It's time for not just a deep introspection but moving the needle big time ! The time to build Data Literacy and Data Proficiency in our Pharma Industry is now. It is probably going to be now or never as we move fast into the world of Big data analytics using M&S*, AI/ML enabled decision making and RPA**.
*M&S: Modelling and Simulation
*RPA: Robotic Process Automation
Part 2: Setting The Context: It Begins at the Top.
1. When the Senior Management / Top Leadership of any organization understands and truly believes in the power of data-driven decision making, only then can things begin to happen. It is always "Top - Down". Organizations that are data-centric and make data-driven decision making a default behavioural mode are far more successful and outperform their peers and rivals by a substantial margin.
2. It is the responsibility of every leader to ensure that all his employees are not just data literate but data proficient. Data Proficiency ranks as one of the top 2 "Must-Have" attributes by hiring managers today. Living and Breathing Data is not just an inevitable but a non-negotiable skill for today's managers.
3. Data is Everybody's Business. It is not just the responsibility of the lowest denominator employee but of each and every employee across every function in the organization. Every BU Head, Director, VP, CEO and even Boards own this responsibility. Data is THE only real strategic asset for any organization; the new Oil or Currency, so to speak. Strategic Investments are getting approved, CDOs are being appointed and more emphasis is now being laid on data literacy.
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4. Data features in the top 3 Action Items of every C-Suite leader. Every CEO wants to drive data-driven decision making across his/her organization. Corporate Boards want to see data achieving core organization goals and enhancing customer satisfaction and exceeding shareholder expectations
5. Data Proficiency is no more a mere jargon or a fancy topic to chat about in board rooms or company dinners. It is real and it is here.
Organizations that are data-centric and make data-driven decision making a default behavioural mode are far more successful and outperform their peers and rivals by a substantial margin. Living and Breathing Data is not just an inevitable but a non-negotiable skill for today's managers. Data is Everybody's Business.
Part 3: Building an Organizational Data-Driven Culture: From Denial to Proficiency.
How do organizations succeed in driving data driven decisions and creating the data culture?
It all begins with a brutally honest self-assessment of where your organization stands today. Please refer to the image below. Where do you think you really stand today and where do you want to be, say in the next 3-5 years?
1. A "Data Blind Mode" means that the organization outrightly rejects data as a source of potential decision making and uses other sources of knowledge or uses "hunch" or even places emphasis on "past experience". Such companies are poorly evolved, growth-stunted and depict lack of progressive approach to business. We believe about 10-15% of companies continue to exist in this mode.
2. A "Data Apathy Mode" is when a company collects data for record keeping purposes but does not utilize it in any way for decision making purposes. This is "Data Ignorance" to say the least. We believe that a good 20-25% of companies exist in this mode.
3. A "Data Aware Mode" is when a company collects data but does not use it for business decisions making. One wonders then what is the core purpose of collecting data if it is not for business decision making ! About 20% companies are found wanting in their ability to utilize collected data effectively.
4. A "Data Focus Mode" is when the organization uses data to make informed decisions. We anticipate that just 10-15% of the organizations are in this mode.
5. A "Data Mastery Mode" is when an organization implements a data-based approach in all potential areas and uses it as the main source of business knowledge. The most desirable state to be in. Highly successful and data-driven organizations like Amazon, Netflix, Apple and such tech companies have institutionalized a data-driven culture across their teams and employees.
Principles of Data Driven Decision Making (DDDM):
Overall Framework:
The three major buckets of DDDM are Tools, Principles and Goals. Each is spelt out in detail in the above diagram. The alignment between the three is what constitutes DDDM.
Data Culture is essentially driven by 4 dimensions: Human, Technology, Capabilities and Processes.
Successful organizations have a data culture that reinforces and facilitates the informed use of data in decision-making. Data culture is essentially driven by four dimensions. These four dimensions are the combination of human capital, technology, capabilities and processes. It is illustrated in the below diagram.
Intellens Business Consulting can help organizations use the power of data analytics to drive decision making in the following areas of the business operations:
We also help practicing industry managers develop a good understanding around the concepts of data literacy, data proficiency and DDDM through our 2-day intensive and immersive program, "Building Data Proficiency". You may sign up for this program as an organization for your key data stakeholders namely Marketing, Sales, Commercial/Marketing Excellence, Data Analytics and MIS functions. It is a three-modules based program spread over two days.
To know more about how data-driven decision making can help improve your organization's effectiveness and business outcomes, please feel free to write into [email protected] or call us on +91 90089 30920.
? Disclaimer: The views expressed in this blog are entirely personal.