How the IT industry can adopt a data-led approach

Does it feel like you’re hearing the term “data-driven” more than ever? Here’s what you need to know about the latest data-led approaches in the IT industry.

The term “data-driven” has become a buzzword in recent years. For more than a decade, it has been widely accepted that digital advances are being embraced by businesses of all sizes, including those that were already technology-centric. It was thought that the best way to achieve this was to become increasingly data-driven. Today, there is growing evidence that the future of business, including IT departments, is driven by data. Part of the reason for this shift is that despite their best intentions, many businesses are struggling to achieve the “data-driven” they believe they should be. A new buzzword has emerged, and data-led decision making is affecting all corners of the IT industry.

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Innovation is key

The IT industry is extremely competitive, and as such, they need to push countless boundaries while embracing a culture known for constant innovation and metamorphosis. However, traditional industries such as banking and tourism thrive on stability while being heavily regulated. Since innovation is not a priority in these industries, they are largely data-driven. When an IT company adopts a data-driven approach, its precision improves. It becomes possible to forge and optimize new paths throughout the core of the organization. It also becomes easier to adapt to changes while solving problems with insight and knowledge. A forward-looking, data-driven focus can help its customer base adapt faster to the ever-changing world around them.

What is the difference between being data-led and data-driven?

An IT company that adopts a data-driven approach bases its strategic decisions on data analysis and clarification. This approach allows businesses to examine and consolidate their data to better serve their customers. When data drives a company’s actions, it becomes very easy to adopt a customer-centric approach to business. This approach often requires the use of technology to guide staff decisions, but not trusting said technology enough to enable it to make actual decisions. As technology advances, IT businesses need to become increasingly data-led. This will result in them being led by data rather than being driven by data.

Data-driven IT benefits customers

Data-led IT companies can leverage artificial intelligence (AI) to have one-on-one conversations with their customers. This can be effectively achieved by using both first-party and third-party data to gain a deeper understanding of a customer’s unique needs. In the IT industry, sophisticated algorithms can help IT consultants with infrastructure planning and design for specific projects. Advanced data-driven insights such as these make it possible to make relevant decisions without any human intervention. Many business managers strive to be able to set goals and plans at the same time. Data-led IT solutions can make it easier for business entities to achieve this goal.

Becoming a data-driven business

In addition to assisting customers, IT organizations will want to share any data-based insights across the business so that all employees can learn from them. Internal data-led strategies must be aligned with the key priorities of the business, whether they focus on customer satisfaction or performance improvement, for example. The goals of the organization and where it is headed must be effectively communicated to all employees. This process can be made easier by understanding its current situation, setting achievable goals, determining the people, processes, and technology required to achieve those goals, and changing its business culture as needed.

Personalized interaction is the future development direction

Leading IT companies are in an ideal position to provide customers with data-driven solutions that range from system analysis and project creation to planning and execution. As many decisions around these experiences become fully automated, more and more customers will seek out this all-inclusive IT solution. As being able to customize products and services becomes more and more important, data-driven will no longer be enough. Human judgment can become a big obstacle in the data-driven decision-making process and seriously hinder its progress. This is just one of the many reasons why data-led trumps data-driven in the modern business environment.

Being data-driven can still benefit many businesses. However, choosing a data-led approach will undoubtedly enable IT companies to provide more personalized and effective services to their customers.