Companies that become more data-driven make better business decisions and have more chances to set themselves apart from their competitors. How are these companies implementing big data initiatives to improve their decision-making? Researchers at the ESADE Institute for Data-Driven Decisions jointly with the ESADE MBA have released a study that reveals how Spanish companies are implementing big data and advanced analytics in their businesses and describes the opportunities and challenges they face along the way. In their study Adoption and Impact of Big Data and Advanced Analytics in Spain, the researchers conducted surveys and interviews with more than a hundred leading companies in Spain in a variety of sectors, more than 60% of which had an annual turnover of more than €200 million. According to the report, 55% of the companies surveyed admitted that they don't yet have a culture of data-based decision-making and 40% acknowledged that they don't have a specific leadership role for this area or have created such a role less than one year ago. 55% of the companies surveyed don't yet have a culture of data-based decision-making But a data-driven culture drives results: 47% of the companies describe their big data and advanced analytics projects as more successful than any other transformation plan. The study also shows that 78% of companies that describe their culture as very analytical believe that the impact of their big data and advanced analytics projects is high or very high (vs. only 36% when data-driven culture is perceived as low). The findings also reveal that companies with an annual turnover of more than €200 million spend an average of €1.8 million of their annual budget on data management. 6 steps to implement a data-driven strategy 1. Find a data-driven expert 2. Identify business priorities 3. Conduct a small-scale pilot 4. Find quick wins 5. Use partial data samples 6. Remember less is more 1. Find a data-driven expert Identify a middle-management person in your company with an analytical mentality and the capacity to understand and interpret models -- someone who can lead pilot tests at an operational level and educate other people in the company. 2. Identify business priorities Identify business priorities in areas of your company where one of the following statements is true: you haven't used advanced modelling techniques, you have differential data compared to your competitors that you haven't exploited, or you have access to new internal or external data sources that could be incorporated into your business in the short term. 3. Conduct a small-scale pilot project Define a small-scale pilot project that lasts 8 to 12 weeks and tackles one of your identified business priorities. Ideally, this project should involve only one operational area of your business (or very few). 4. Find quick wins Focus your project goals on targeting first insights and quick wins -- that is, small transformations and improvements that can be tested in the short term and generate convincing results for the organization. 5. Use partial data samples Start using partial data samples when it's not possible to quickly obtain all the data required to launch an initiative (for instance, start with a sample of customers in a specific area, consider only limited types of products or a specific segment, etc.). 6. Remember that less is more Focus your initial efforts - in terms of both investment and resources - on implementing pilot projects instead of trying to build large storage and data-exploitation architecture systems. A new institute to promote data-based decision-making The report was presented at the first annual Data + Decisions conference, which doubled as the debut of the ESADE Institute for Data-Driven Decisions, a new centre that aims to help business leaders and executives increase their companies' chances of success through data-based decision-making. You may also like: Is artificial intelligence going to disrupt every business?

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6 steps to turn your company into a data-driven business

06/2018

Companies that become more data-driven make better business decisions and have more chances to set themselves apart from their competitors. How are these companies implementing big data initiatives to improve their decision-making?


Researchers at the ESADE Institute for Data-Driven Decisions jointly with the ESADE MBA have released a study that reveals how Spanish companies are implementing big data and advanced analytics in their businesses and describes the opportunities and challenges they face along the way.


In their study Adoption and Impact of Big Data and Advanced Analytics in Spain, the researchers conducted surveys and interviews with more than a hundred leading companies in Spain in a variety of sectors, more than 60% of which had an annual turnover of more than €200 million.


According to the report, 55% of the companies surveyed admitted that they don't yet have a culture of data-based decision-making and 40% acknowledged that they don't have a specific leadership role for this area or have created such a role less than one year ago.


55% of the companies surveyed don't yet have a culture of data-based decision-making


But a data-driven culture drives results: 47% of the companies describe their big data and advanced analytics projects as more successful than any other transformation plan. The study also shows that 78% of companies that describe their culture as very analytical believe that the impact of their big data and advanced analytics projects is high or very high (vs. only 36% when data-driven culture is perceived as low).


The findings also reveal that companies with an annual turnover of more than €200 million spend an average of €1.8 million of their annual budget on data management.


6 steps to implement a data-driven strategy



1. Find a data-driven expert

2. Identify business priorities

3. Conduct a small-scale pilot


4. Find quick wins

5. Use partial data samples

6. Remember less is more


1. Find a data-driven expert


Identify a middle-management person in your company with an analytical mentality and the capacity to understand and interpret models -- someone who can lead pilot tests at an operational level and educate other people in the company.


2. Identify business priorities


Identify business priorities in areas of your company where one of the following statements is true: you haven't used advanced modelling techniques, you have differential data compared to your competitors that you haven't exploited, or you have access to new internal or external data sources that could be incorporated into your business in the short term.


3. Conduct a small-scale pilot project


Define a small-scale pilot project that lasts 8 to 12 weeks and tackles one of your identified business priorities. Ideally, this project should involve only one operational area of your business (or very few).


4. Find quick wins


Focus your project goals on targeting first insights and quick wins -- that is, small transformations and improvements that can be tested in the short term and generate convincing results for the organization.


5. Use partial data samples


Start using partial data samples when it's not possible to quickly obtain all the data required to launch an initiative (for instance, start with a sample of customers in a specific area, consider only limited types of products or a specific segment, etc.).


6. Remember that less is more


Focus your initial efforts - in terms of both investment and resources - on implementing pilot projects instead of trying to build large storage and data-exploitation architecture systems.


A new institute to promote data-based decision-making


The report was presented at the first annual Data + Decisions conference, which doubled as the debut of the ESADE Institute for Data-Driven Decisions, a new centre that aims to help business leaders and executives increase their companies' chances of success through data-based decision-making.


You may also like: Is artificial intelligence going to disrupt every business?

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