The effective use of data has emerged from its traditional home in IT to become the basis of competition.
Moreover, evolving data analysis means that every part of an organization can now rely on data-driven decision-making to drive operations, according to an article by Ernst & Young.
“Companies that invest in and successfully derive value from their data will have a distinct advantage over their competitors – a performance gap that will continue to grow as more relevant data is generated, emerging technologies and digital channels offer better acquisition and delivery mechanisms, and the technologies that enable faster, easier data analysis continue to develop,” the article notes.
The article describes how companies can use analytics to create a single view across an organization using reporting and data visualization to:
“It is no longer enough for companies to simply understand current process or operations with a view on improving what already exists, when there is now the capacity to question if a process is relevant to the business, or whether there is a new way of solving a particular issue,” according to the article. “The key driver for innovation within organizations is to constantly challenge existing practices rather than consistently accept the same.”
The article suggests that company leaders address seven questions to assess the organization’s readiness for data-driven decision-making:
“The increased use of big data challenges the traditional frameworks for protecting the privacy of personal information, forcing companies to audit the implementation of their privacy policies to ensure that privacy is being properly maintained,” the article points out. “Have you defined who owns big data information, and whether there is actual or implied consent to use the same?”