Data-Driven Innovation: From Insights to Actionable Strategies
Research shows that 94% of CEOs now consider business innovation as a top-three business strategy priority. In today’s data-driven landscapes, transforming insights into action should be a priority for any organization that wishes to stay ahead of the competition.
However, knowing that you need data to drive innovation forward and actively creating an environment where this happens are two different things.
The benefits of using data as the central focus of your strategy
Before looking at how to embrace data-driven innovation, you must first ask why it’s important.
Research shows that data-driven organizations are 23 times more likely to acquire customers and six times more likely to retain them. Every great innovation is sparked by an idea, which itself has come from gaining a valuable insight. When insights stem from data, they inspire action.
Data-driven innovation unearths clear and objective facts, establishes feedback loops for real-time collaborations, and supports agile organizations by highlighting opportunities. Innovation often revolves around customer-centric ideas and data-led innovation develops a robust strategy by identifying individual behavior patterns as well as demographic trends.
Crucially, using insights obtained to guide the strategy removes emotion from decision-making processes. The focus subsequently shifts to quality ideas rather than worrying about which employee introduced each idea, which naturally encourages a company-wide buy-in. With more intrapreneurs on the job, the volume of ideas presented will increase.
How to transform data insights into actionable strategies
Embracing data-driven innovation can feel like a difficult concept. However, focusing on the following five steps should transform your approach to corporate innovation.
1. Choose the right tools
Studies show that 62% of high-growth companies plan to invest in technologies that lead to higher rates of innovation, compared to 54% of other companies. The right tools should be capable of turning big data into actionable insights. Platforms such as the Innovation Platform that is part of the KICKBOX program, which visualize data and present it in a way that encourages action, will transform the overall strategy.
2. Analyze as much data as possible
Having the tools to analyze big data is one thing, but it’s equally important to gain data from as many angles as necessary. Iterative companies prioritize user experience and customer feedback. So, collecting data in relation to these two issues is essential. When analyzed in relation to the right Key Performance Indicators (KPIs), actionable steps will become clearer.
3. Emphasize the focus on data
Data-driven innovation can only lead to action if employees appreciate the importance of data insights and know how to use them, as well as act upon them. 59% of executives aren’t sure they have the right people to deliver high-quality innovation. In most cases, the real problems comes from a lack of training and emphasis on making data-driven decisions. Placing value on data is vital.
4. Bring teams together
Analyzing more data, especially with clear objectives, will lead to powerful insights. Multi-departmental collaborations facilitated by tools like KICKBOX, create greater transparency for the entire business. Actionable strategies are subsequently formulated with the best intentions of the organization in mind rather than an individual.
5. Learn how others utilize data-driven innovation
When thinking about how to turn insights into actionable strategies, taking inspiration from others is ideal. Netflix and Game of Cards is a fascinating story of how data can be used to inform decisions, even when the product is as creative as a TV show. There are many other examples of using data to highlight opportunities.
Take action now
Perhaps most importantly, businesses can only embrace data-driven innovation if they make a full commitment to it. While a mindset shift is crucial, supporting yourself with the right tools is equally vital.