Data can help you find, understand and address underlying organizational issues. The first step is understanding the data.
Many companies are struggling with the transition to data-centricity as the need to do so grows by the day. Data-centric companies understand that their businesses generate data from customer and internal interactions and that they can leverage that data to spot trends, to take proactive actions and meet customer and internal needs before people realize they need it.
Some data-centric companies philosophically view themselves as much a technology company as they do the specialty that they perform. Ask yourself, are you a tire retailer or a technology company that sells tires? The answer can change your perspective as to how you approach data analytics and how you invest in those capabilities.
Let’s look at a simple example. Today, grocery stores like Walmart, Safeway, Kroger and others can aggregate and leverage data from the check-out registers and your frequent shopper cards to adjust store level inventory mix at the macro level.
This is just the beginning of what’s possible with the data collected. Imagine a day where they are able to customize your shopping experience just in time for your shopping needs.
For example, using analytic tools, they could spot those customers that typically buy birthday candles and a cake at the beginning of April every year at a given store. This could signal a special recurring event, so they could proactively offer you a party catering proposal or a phone-based offer for related party supplies.
The promise of data analysis in this case is to be able to anticipate the needs of your customer well so that they don’t have to shop around. First mover advantage gets the business. Data analytics and automated workflows can be used to create these external feedback loops.
Data can enable the same type of capabilities internally.;