What is a data driven organization?
Many big firms like Google, Amazon, Microsoft have data driven approach to achieve operational efficiency and to stay competitive. There are so many case studies outlining how these firms used insights from data driven models to improve sales, customer experience, and internal processes.
Data driven means that the organization not only tries to capture data related to all aspects of the business but also empowers its employees with insights from that data. These insights are then used by the firm to be innovative, competitive & disruptive.
What does data driven enterprise transformation look like?
Below are some of the ways data driven transformation can empower organizations:
- Adapt to ever-changing customer & user behaviors
- Discover new business models
- Enable bottom-up Innovation
- Update pricing to stay competitive
What does it mean to be purpose driven?
It’s understandable that making money is important for organizations to survive and grow. Purpose driven organizations go to the next level by offering products & services targeting both high-profit margins and the betterment of humans and our planet.
As per a report – “Purposeful companies outperform rest of the market by 42%”
DDI World Report
What are the pillars of corporate sustainability?
Corporate Sustainability has three main pillars:
- People (“Social”)
- Planet (“Environmental”)
- Profits (“Economic”)
There is a fourth pillar i.e. “Culture” which is also included sometimes in defining the purpose of the firm.
“People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe”
Simon Sinek
So what is purpose & data drive transformation?
In my opinion, data can identify risks & opportunities but can’t derive transformation or strategic decisions. The decisions are driven by the vision, purpose, or values of the leadership in the firm.
To prove my point, I will share a scenario – imagine you are leading a grocery retail chain. During this pandemic period, the data shows there is an increase in demand for toilet paper. Also, your supply is stable and consistent.
Based on the data purely, you might have a choice to either bump up the price of toilet paper which will increase your profits or you will have a choice to think about people or society around you and keep the prices unchanged.
What will you do?
I think going forward will see more and more firms targeting purpose driven transformation but supported by data driven insights. The impact of this purpose transformation will not just be on the firm’s direction but also on day to day operational processes e.g. As part of the new hire process, candidates to be evaluated based on the firm’s vision & purpose. Similarly, there will be grounds-up transformation in other processes like sales & marketing.
Below is an example of how that hybrid transformation model might look like.
Want to learn more about concept of purpose driven organizations?
We highly recommend “Become a Purpose-Driven Leader” course from Harvard. For more information click here
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