The Data-Driven Company is a company where data-driven strategies. We discover the enormous potential of data to support business decisions.
In recent years there has been nothing but talk of data. Suppose it is true that the advent of Big Data, cloud technologies and analysis tools has made an ever-increasing number of data available. on that case, it is also true that data is sterile when not transformed into information, first and then into the experience.
But what are the steps to take to transform the “simple” given into experience to support the insurance strategy?
From data to strategy
The first fundamental aspect of basing the decision-making process on data is giving a clear structure to the data collected to organize the information, understand it, and transform it into experience, as illustrated in the DIKW data pyramid ( Data-Information-Knowledge-Wisdom ).
- Level 1: Collect data
- Companies are often unaware that they have data available that could be useful. For this reason, it becomes of primary importance to design your data model linked to the personal data of the contacts (customers/suppliers/employees), of your products and services and the generated leads.
- Level 2: Understanding the data
- The data must then be understood and contextualized to be transformed into information. From this moment on, the company begins to develop real knowledge, as the information allows it to understand the market, the customers, and the internal culture.
- Level 3: Processing the data
- Once collected and transformed into intelligible information, the data can be organized and processed in specific reports to support the various decision-making processes in the company.
- Level 4: Starting Innovation
- Once at the top of the pyramid, knowledge gained and processed can be applied to decision making and business innovation.
The value of Business Intelligence
According to the “Data Never Sleeps 8.0” study published by DOMO, approximately 2 MB of data is created per second for each person. But are they all relevant to businesses?
This theme finds its answer in the “Data Architecture” (or Business Intelligence ). The Business Intelligence (BI) creates a database, integrates with all enterprise systems, and extracts the most relevant meanings for each.
The top-down approaches in which the IT department deals alone with the implementation of the BI systems and the production of reports – therefore not working in concert with other teams and departments – are to be avoided because they risk not providing relevant data and useful to the company and to impose a repetition of work that would be to the detriment of the flexibility and speed necessary to operate effectively in the current market.
The business intelligence should be, instead, interactive and accessible. While IT departments are critical to managing access to data, the participation of various departments and the access of multiple levels of users can facilitate the customization of dashboards and the quick and immediate creation of reports to support specific strategic decisions.
Practical advice for aspiring Data-Driven Company
At the end of this article, we summarize some practical tips to implement an effective data analysis process in the company:
- Start with the data pyramid and the structure of the information in your possession;
- Involve the company population in the new mindset that conceives data as a tool to improve work and performance in the company and to support the design of the strategy;
- Implement a recursive process of collecting, understanding, organizing and processing data;
- Create and internally disseminate a Data-Driven Culture attentive to the dissemination of data culture, capable of managing the impacts on the organization and governing the ethical and privacy implications.