A recent McKinsey analysis has found out that taking a data-centric approach can improve a company’s marketing return on investment (MROI) by 15-20%. Moreover, companies that utilize big data and analytics effectively also increase their productivity and profitability by 5-6% as compared to their competitors who don’t. Incredible, isn’t it?
No wonder then that so many business organizations are readily adopting big data and analytics. However, did you know that shifting to a data-centric approach, which means letting big data analytics help you make crucial business decisions, also impacts the working culture of a company in more than one ways? Let’s find out more about it.
Hiring practices: Handling the biggest asset of a company – its employees – is the main function of the HR department. The datafication of hiring process ensures that only people suited to the company culture are chosen to be a part of it. An availability to an algorithm that can filter out the best matches supports the intuitive inclination of an HR personnel while deciding to bring an applicant onboard. Moreover, a data-driven internal networking process also builds a more personal and efficient working environment.
Marketing trends: Who wouldn’t want to get rid of useless advertisements or plans directed on people who don’t even care about your products? Streamlined analytics means you have the ability to see exactly where your money should be going to get the best bottomline. As your marketing demographics veer towards the right group, so will your overall company culture change – it will have to embrace the ideals and personality of your customers.
Trading and investment patterns: The financial industry, which already doesn’t allow any mistakes, is getting more tuned in to accuracy by replacing individual reports with the extreme detailing and specificity of a big data analysis. It may soon be that not following the data starts resulting in you getting sued by an employer or client.
Change is the rule of nature. As clichéd it might sound, it remains true for every domain, including business strategy making. In order to get the best from big data analytics, you will have to make fundamental changes in the way your company functions. It may mean changing working hours to get the best from your employees or getting rid of an entire segment of ineffective marketing plans. Being flexible to incorporate the insights that data analysis reveals is basic necessity for any firm to get the maximum ROI on its big data investments.
What are your views about changes that big data analytics bring to a company’s culture? Share in the comments section.