As we know and find ourselves saying constantly, data and analytics have an important part in companies presently. Their use is to shape strategies, improve processes, and drive the company forward. However, amongst all the hypes and buzzwords, there is a structural reality that sometimes may get forgotten about or pushed aside. The end point is obviously to improve business performance, something which is very often measured in financial terms.
Usually, organisations and companies make investments in particular things because they want whatever they’re investing in to improve their organisation’s business outcomes. With data and analytics, it’s not very different. For profit-driven companies, “business performance” is often measured in financial terms.
There may be occasions where not all D&A projects are financially motivated initially.
Sure, there are many instances where the immediate driver of D&A work may not be financial in nature and there are drivers for this such as customer experience and risk mitigation. Through customer experiences, you are enhancing satisfaction and loyalty to the brand, whilst through risk mitigation the company is dodging fines, compliance breaches and harm to the brand.
Although, these drivers do still bring us back to profitability, albeit indirectly. Better customer experiences and journeys can lead to more sales, retention, referrals and brand advocates, thus increasing financial income. And through effective risk management, one can prevent spending money on avoidable hiccups.
Sometimes you have to bite the bullet and accept reality as the financial motive behind data and analytics can at times be met with reluctance. Acknowledging and welcoming this reality will allow data leaders and professionals alike to set all their focus on providing (profitable) results.
Also, sometimes you just need to lean in and handle the challenge head-on – embrace it. The commercial expectations of data and analytics can be difficult but by recognising that business performance is the final aim and desirable endpoint, data teams can work more successfully within the structure.
By accepting the connection between D&A and financial performance—and tackling the challenges that come with it willingly—data leaders and professionals can work more effectively and achieve results that drive both organisational success and personal growth.
Sophie Muscat
Sophie is our Head of Marketing. She has a wealth of experience in marketing and communications, having driven strategic initiatives and managed direct communications.
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