Wednesday, February 21, 2024
CEOWORLD magazine - Latest - Banking and Finance - How Using Data to Restructure Your Business Model Will Benefit You

Banking and Finance

How Using Data to Restructure Your Business Model Will Benefit You

Diana Bald

In today’s competitive marketplace, data is vital for business success. However, many C-suite leaders are reluctant to build a data-driven culture due to disruption, complexity, privacy, and regulatory concerns. To unlock the benefits of data transformation, you have to reframe your viewpoint and approach.

Through data, a business can better tailor its offerings to meet customer needs and preferences, leading to an improved experience for customers and increased profits for companies. Data can also help businesses forecast demand and sales volume, optimize pricing, and identify inefficiencies in the supply chain.

In today’s competitive marketplace, data isn’t simply nice to have — it’s essential for success. Data serves as a potent resource for enterprises, enabling them to identify new opportunities, enhance operations, and provide superior customer experiences. And yet, despite all this, many C-suite leaders are still hesitant to embrace data fully. There are several reasons for this: They may fear disruption, worry about securing stakeholder buy-in, or be intimidated by its perceived complexity. Or they may be scared off by potential data privacy, security, and regulatory compliance risks.

These worries don’t appear out of nowhere — they’re often shaped by past experiences, high-profile news events, or an unfamiliarity with the benefits of data transformation. Some leaders may just be more risk-averse or resistant to change in general. Still, whatever the basis of these worries, at the end of the day, they all prevent leaders from taking advantage of the benefits of building a data-driven culture.

It’s important not to let short-term concerns hamper the long-term advantages that the data transformation process can offer. Instead, it’s time to go all in on data, recognizing it for the beneficially transformative tool it can be.

Why It’s Time to Change the Way You Think About Data

When you’re willing to push data out of its traditional bounds of information technology, you’ll find a strategic partner that positively impacts your entire organization. Data transformation is about more than just implementation. It’s about harnessing data to gain a competitive advantage, improve operations, and grow a business. An effective data management strategy can benefit operations, human resources, marketing, sales, and more.

And while it may seem intimidating at first glance, data transformation is a learnable skill. At its core, successful data transformation consists of five aspects: project scoping, tools and technologies, data governance, testing, and deployment. There are plenty of low-cost — or even free — online resources where anyone can learn about these important factors and come away with a clear idea of what data transformation entails and where to begin.

Not only is it easy to learn about, but it’s also accessible for businesses of virtually any size. The cost of transformation is largely dependent on the size and complexity of a specific project. But in the long term, data-driven decision-making can even pay those costs back by improving profits and reducing financial waste. In other words, whatever your budget or constraints, chances are you can find a way to perform the data transformation you need. 

How to Reframe Your Approach to Data Management

By viewing data as a way to improve your business holistically, you can better understand what data can do for you and how to implement it. However, getting into this mindset can sometimes be difficult, especially if you’ve spent a long time keeping the possibility of data transformation at arm’s length. With that in mind, let’s look at a few ways you can reframe how your business looks at data management to tap into the full potential of what it can do for your business.

  1. View data as a strategic asset.
    Invest in data management techniques that will help you to collect, store, and analyze data. Leverage data for its strategic insights and use it to drive your strategic business decisions. In order to get your bearings, start with small, manageable projects that can deliver quick wins. From there, you can gradually scale your efforts. This will allow you to learn, adapt, and improve your strategy at the same time.
  2. Develop comprehensive data protocols.
    In order to ensure accessibility and maintain data quality, develop a data strategy that outlines how data is to be classified, stored, and shared. Have clear guidelines in place that ensure the right data is accessible to the right people — and only the right people — at the right time. Set up a regular schedule for checking and maintaining your data’s accuracy, completeness, and consistency.
  3. Embrace a data-driven culture.
    Set clear goals, encourage collaboration, and empower employees to use data to guide their decisions. Measure your results and regularly review your data management practices. Promote a data-driven culture of continuous learning, encouraging calculated risk-taking and enabling cross-functional collaboration.
  4. Educate yourself and your team.
    Learn the skills to leverage data and encourage your teams to do the same. This might involve training in data analysis and data-driven decision-making. Foster a growth-oriented, collaborative, and open mindset in your teams. Consider hiring data scientists or data-savvy professionals who can lead the way and mentor others.

Data transformation is the future of business. The question is less about whether you should embrace it but whether to embrace it now or risk being left in the dust. Now is the time to change the way you think about data. Your company will thank you for it.

Written by Diana Bald.

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CEOWORLD magazine - Latest - Banking and Finance - How Using Data to Restructure Your Business Model Will Benefit You
Diana Bald
Diana Bald, president of Blue Orange Digital, leverages her extensive cross-industry experience to drive growth and innovation in data transformation, machine learning, and advanced analytics for enterprise clients.

Diana Bald is an opinion columnist for the CEOWORLD magazine. You can follow her on LinkedIn.