Over recent years the term ‘data-driven’ has become somewhat of a buzzword. For more than 10 years, it has been widely accepted that all businesses, including those who are already technology-centric, should embrace advancements in digital technology. It was believed that the best way to achieve this was to become increasingly data-driven. Today, an ever-expanding body of evidence suggests that the future of business, which includes those in the IT sector, is not data-driven, but rather data-led. This shift is partially due to the fact that, despite their best intentions, many businesses were battling to become as ‘data-driven’ as they believed they should be. A new buzzword has emerged and data-led decision making is impacting all corners of the IT industry.
Innovation is key
The IT industry is extremely competitive and for this reason, they need to push countless boundaries while embracing a culture known for its constant innovation and metamorphosis. Conventional industries such as banking and tourism, however, thrive on stability while being closely regulated. As innovation is not a top priority within these industries, they are, for the most part, data-driven instead of data-led. When an IT firm is data-led it enjoys increased precision. Forging and optimizing new paths throughout the core of the organization becomes possible. It also becomes easier to adapt to changes while addressing concerns with insight and knowledge. A forward-thinking, data-led concern can help its client base to adapt faster to a world that is changing rapidly around them.
What is the difference between data-led and data-driven?
An IT firm that makes use of a data-driven approach bases its strategic decisions on data analysis and clarification. This approach makes it possible for the business to both inspect and consolidate their data in such a way as to better serve their clients. When data drives a firm’s actions, it becomes significantly easier to take a more customer-centric approach to business. This approach usually entails using technology to guide human decision-making but not enough trust in said technology to allow it to make the actual decisions. As technology advances, IT firms need to become increasingly data-led. This will entail them being pulled by data instead of being pushed by it.
Data-led IT benefits clients
A data-led IT firm can utilize artificial intelligence (AI) to create one-on-one conversations with its clients. This can effectively be achieved by making use of both first- and third-party data in order to gain a greater understanding of the client’s unique needs. In IT, complex algorithms can assist IT consultants with infrastructure planning and design for specific projects. High-level data-led insights such as these make it possible to make pertinent decisions without any significant human intervention. Many business owners strive towards being able to set goals and plan at the same time. Data-led IT solutions can make it considerably easier for business entities to achieve just this.
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Becoming a data-led business
Apart from assisting clients, an IT firm would also want any data-derived insights to be shared across the entire business to enable all employees to learn from it. It is essential that an internal data-led strategy aligns with the key priorities of the business regardless of whether they focus on client satisfaction or performance improvements, for example. Both the goals of the firm as well as the direction it is taking have to be effectually communicated to all employees. This can be made easier by understanding your current situation, setting achievable goals, identifying the people, processes, and technologies required to reach these goals, and changing your business culture as required.
Personalized interactions are the way of the future
Progressive IT firms are in the ideal position to offer their clients data-led solutions that range from system analysis and project creation to planning and execution. As many of the decisions surrounding these experiences become fully automated, an increasing number of clients will seek out such all-inclusive IT solutions. As it becomes substantially more important to be able to customize products and services, being data-driven will no longer suffice. Human judgment can be a big obstacle in a data-powered decision-making process and can hinder progress extensively. This is just one of many reasons why being data-led trumps being data-driven in a modern-day business setup.
Being data-driven can still benefit a number of business enterprises. Opting for a data-led approach, however, will undoubtedly empower IT firms to render more personalized, effectual services to their clients.