Data-Driven Organization Design: How to Build Data-Driven Culture From the Ground Up?

Data-Driven Organization Design: How to Build Data-Driven Culture From the Ground Up?

Mateusz Łach - March 7, 2023 - updated on March 6, 2023

Data, data, everywhere. In today’s fast-paced business world, it’s not just about having data – it’s about making sense of it. And that’s where the real challenge lies. But fear not, dear reader. We have the blueprint for turning your data-drowned organization into a data-driven powerhouse.

With a little bit of strategy, a dash of technology, and a pinch of team collaboration, you too can join the ranks of data-savvy enterprises. So, let’s get started on this exciting journey to building a data-driven organization.

TL;DR

• Data is an increasingly valuable asset for organizations. The use of data and analytics can provide significant financial benefits. Understanding the economic impact of data and analytics is crucial for organizations to prioritize investments in this area.

• Data silos occur when data is stored in isolated systems or departments. It can limit the accessibility and usefulness of data across an organization. Overcoming data silos requires a concerted effort to integrate data across systems and teams.

• Building a data-driven organization starts with a clear strategy and a focus on data literacy. Teams need to work together to collect and analyze data in a meaningful way. Utilizing technology and setting key metrics can help organizations make data-driven decisions.

• The quality of data is just as important as the quantity. Organizations need to collect data that is relevant, accurate, and timely. Data collection processes need to be well-defined and consistently followed. Regularly reviewing and updating the data strategy ensures that it remains relevant and effective. Organizations need to be flexible and open to change in order to continuously improve their data strategy.

• Nexocode offers a range of data-related services to support companies in their digital transformation. From data engineering to AI, our experts can help organizations unlock the full potential of your data. Reach out to us today to learn how we can support your data-driven journey.

The Economics of Data and Analytics

Smart investments in data infrastructure, talent, and data products can lead to significant financial benefits. As such, organizations must consider data as a strategic asset and align it with their overall business objectives.

Only reliable and relevant data should be collected and used. Companies must evaluate data sources to understand the quality, accuracy, and timeliness of data, and then use data models to create data products.

Organizations must also understand the economics of data infrastructure, such as data storage and data processing costs. These costs can quickly add up, especially in the case of data-intensive projects. Companies must invest in data infrastructure to facilitate data accuracy and accessibility.

Reporting vs. Data Analysis

For any organization to be truly data-driven, data analysis is key. Reports can provide valuable insights, but data analysis goes beyond that by using data to explain and predict patterns in data. This helps organizations make data-driven decisions, rather than relying on guesswork or gut feeling.

Data-Driven Organization Design: How to Build Data-Driven Culture From the Ground Up?

Data-Driven Organization Design: How to Build Data-Driven Culture From the Ground Up?

Reporting on what happened in the past is necessary for validating data and identifying any anomalies or inconsistencies. Such information can provide useful insights, and is often required for giving an overview to stakeholders.

However, data analysis is essential for understanding the “why” behind data patterns, going beyond exploration and reporting to predict future trends and behaviors. It enables organizations to build data-driven models, such as predictive analytics and machine learning for anticipating customer needs and making data-driven decisions faster than ever before.

The Data Silos Many Successful Enterprises Face

Organizations often struggle with data silos, which occur when data is stored in separate systems or departments. Data silos limit data accessibility and usefulness, resulting in data that cannot be used to its full potential.

Overcoming data silos requires a data-driven strategy that focuses on data integration and data quality. Companies need to find methods to unify data across systems and a centralized data team, while at the same time confirming data accuracy and relevancy.

Data integration tools, data governance policies, data standards, and data literacy all play a vital role in data silo elimination. Hiring the right talent can also be beneficial, as data experts are trained to identify data silos and develop data-driven solutions.

How to Build a Data-Driven Organization?

Leveraging data to make informed decisions requires a data-driven business design with a focus on data literacy. A data-driven culture is not something that can be created overnight, but rather built over time with the right approach – having clear objectives in mind, measuring success by tracking relevant metrics, and making use of available technologies.

Organizations must first assess their data needs and then develop a data-driven strategy to meet those needs. This involves teams working together to perform data collection, data integration, and data analysis in a meaningful manner, as well as putting in place data governance policies to guarantee data accuracy and security.

Learn How to Collect the Right Data the Right Way

Basing data-driven decisions on data that is aligned with organizational objectives first requires obtaining that information. This involves identifying the right data sources and understanding collection methods in order to only gather data that is relevant, accurate, and timely.

Raw data quality is as important as quantity (if not more than), so the collection process must be well-defined and abided by at all times. Organizations must also consider data privacy and data compliance when collecting data, as well as the data storage and processing costs associated with the existing or planned infrastructure.

Build and Constantly Iterate on Your Data Strategy

Jumping into data-driven projects without a data strategy can be dangerous, as decisions are often made in haste and without understanding the larger data landscape. It is crucial to have an overarching data strategy that outlines data objectives, data sources, data integration processes, and data security protocols.

Any reliable strategy should evolve over time through regular reviews and updates as data needs change and different data sources become available, such that the approach always remains relevant and effective. Continuous improvement of the data strategy therefore requires flexibility and organizations being open to change.

Join Forces of Data Scientists and Business Teams

Bridging the data gap between analytics professionals and decision makers in other areas of the organization is critical for any truly data-driven company. Data scientists need to work with the stakeholders to understand the needs and business objectives before getting to work on the collection, analysis, and interpretation of data.

At the same time, data analysts must communicate findings in a manner that non-technical individuals can easily comprehend. This means avoiding jargon and technical terminology whenever possible. A combination of data analysis expertise, business acumen, and communication skills allow companies to make data-driven decisions quickly and accurately.

Build Data Literacy Across Your Org

It is necessary for companies to train their employees in data analysis, visualization, storytelling, governance, and privacy, etc., so that everyone can understand data-related concepts and how they can be used to improve decision-making in the business. Educating employees on data best practices and ethics can also increase the likelihood of data being used properly.

Creating a data-driven culture requires an investment of resources for building out infrastructure, processes, and training initiatives in order to develop data literacy across all areas of the business, giving employees the knowledge and tools they need to interpret data correctly. It also requires commitment from all data teams and their members across the organization to learn.

Data Visualization: A Tool for Bringing Your Data to Life

Diving into data and extracting meaningful insights is a useful approach for making data more accessible, allowing it to be presented in a more meaningful and impactful manner. Data visualization can assist with explaining complex data sets quickly and accurately, enabling users to identify patterns and trends, spot anomalies, or notice hidden correlations.

Investing in data visualization tools can also save time and effort by making data easier to interpret and less time-consuming to analyze. Businesses can utilize data visualization to bring data to life, making it easier for teams across the organization to understand the implications of their decisions and confirm that they are supported by facts.

Data Democratization – Prepare Data Infrastructure That Enables Streamlined Data Access and Processing Capabilities

Unequal data access across teams and departments can lead to data silos, where data is not reviewed in a timely manner, bias occurs, and/or integrity is compromised. To avoid such scenarios, data infrastructure needs to be reliable and up-to-date to improve the processing of data capabilities – that is, to facilitate faster data retrieval, analysis, and secure data sharing among different teams.

Data democratization is also necessary for developing trust among all stakeholders – when everyone has access to the same data sets, collaboration is encouraged, and an environment of mutual understanding is created. Developing consistent data pipelines gives all teams equal access to the data they need to make decisions, with an audit trail available for all changes made.

Utilize Novel Technologies to Analyze Data and Extract Insights

Sophisticated data analysis techniques and machine learning algorithms can reveal understanding from data that were previously difficult or impossible to uncover. Leveraging cutting-edge techniques in data exploration, mining, and inference can help organizations identify opportunities for improvement, as well as patterns or trends in customer behavior and preferences.

These novel technologies provide data scientists with the tools they need to interact with data quickly and accurately, giving them access to predictive insights that can drive better decision-making within their organization. Additionally, advanced analytics platforms enable companies to create their own models of data science based on past experiences and current needs.

Set Key Metrics for Decision Making

Choosing which data needs to be tracked, monitored, and evaluated to determine the best possible course of action is a key aspect of data-driven organizations. Keeping track of key performance indicators (KPIs) is the best approach for measuring progress and using insights productively.

KPIs must be relevant to the objectives set by the organization, with data collected regularly in order for them to remain meaningful. The information gathered should be used to evaluate the success of data initiatives and inform decisions for future strategies.

The business metrics to track may concern revenue – linked to marketing and sales, profitability – concerning operations and their efficiency, and risk – sustainability of the business considering the current cash flow situation. Data-driven KPIs will be dynamic, meaning that variations and trends are easy to identify, unlike in traditional metrics such as annual revenue.

Data Privacy, Security, and Ethics: The Non-Negotiables of a Data-Driven Approach

It is essential to put in place data governance controls for data to be collected and used legally and with consent. Organizations must identify any potential risks associated with data collection and data usage before they start the process, including verifying that all teams understand the expected standards of data use and adhering to industry regulations such as GDPR or CCPA.

Credentials also need to be monitored closely so that access is only granted to authorized personnel, who ought to have the ability to do so easily and securely across teams and departments. Data governance procedures also reduce the risk of errors or inconsistencies due to manual entry or duplicate records.

Appoint the Data-Driven C-Level – The Evolution of a Chief Data Officer Role

Dedicating a data-driven culture and data governance strategy to a CDO is a necessity for the successful implementation of data-driven design. The chief data officer will be responsible for the organized collection of data, as well as monitoring usage and security across teams – connecting people and departments across the organization in terms of data.

Since a CDO first became part of the management structure at CapitalOne in 2002, the role has already evolved from that of a kind of chief information office (CIO)-lite (i.e., overseeing the people, processes, and technologies involved in an organization’s data collection) to a position more on an equal footing with the chief executive office (CEO) on the team of executive business leaders.

The role of CDO was initially developed to address data security, fraud prevention, and governance concerns. Today, however, CDOs are taking a more proactive approach by leveraging current data assets in order to unlock value for the entire organization. This requires individuals with experience from analytics or business backgrounds as opposed to legal and technical ones.

The current and future CDOs will lead and drive organizational progress in using data and analytics to power the business – optimizing key processes, mitigating compliance and regulatory risks, generating new revenue streams, deriving business value from data, as well as creating remarkable customer experiences.

Data-Driven Culture: Transforming Organizations for the Better

Every organization must create a data culture and data management policies to accommodate data-driven decision-making. This starts with data literacy, which can lead to data-driven mindset changes within the organization that are led by the evolved role of a chief data officer.

Data-driven companies are characterized by transparency, collaboration, knowledge sharing, and collective problem-solving that together result in a culture of continuous improvement. Stakeholders across different departments should collaborate regularly to discover data insights for improving operations and informing strategies.

Creating a data-driven culture from the ground up allows organizations to build a strong foundation for data complexity and scalability in order to compete effectively on the market. An agile approach is required when it comes to leveraging data: continuously monitor data, experimenting to solve data-related issues, and using data analytics to predict outcomes.

Data-driven culture should also prioritize data protection, privacy, and security, while using data responsibly and fairly in order to benefit customers and the business. Such a data-driven enterprise design, the implementation of which is no mean feat, will allow businesses to stay competitive and maintain data governance in what is becoming a data-driven world.

The data governance strategy must be implemented from the ground up as part of a digital transformation. If you need help doing so in your organization, reach out to us at nexocode – we are experts in everything data related, from data engineering to artificial intelligence (AI) – and find out firsthand how a cultural shift and data-driven organization design can benefit your business.

About the author

Mateusz Łach

Mateusz Łach

AI & Digital Business Consultant

Linkedin profile

Mateusz is a digital strategist and innovation enthusiast. He enjoys building new products and concepts, often with the help of AI. Mateusz joined Nexocode with the mission to consult startups, mid-size companies, and enterprises on their digital transformation journey and help them benefit from custom artificial intelligence solutions.
Responsible for overall business development and sales activities. A geek of new technologies.

Would you like to discuss AI opportunities in your business?

Let us know and Dorota will arrange a call with our experts.

Dorota Owczarek
Dorota Owczarek
AI Product Lead

Thanks for the message!

We'll do our best to get back to you
as soon as possible.

This article is a part of

Becoming AI Driven
90 articles

Becoming AI Driven

Artificial Intelligence solutions are becoming the next competitive edge for many companies within various industries. How do you know if your company should invest time into emerging tech? How to discover and benefit from AI opportunities? How to run AI projects?

Follow our article series to learn how to get on a path towards AI adoption. Join us as we explore the benefits and challenges that come with AI implementation and guide business leaders in creating AI-based companies.

check it out

Becoming AI Driven

Insights on practical AI applications just one click away

Sign up for our newsletter and don't miss out on the latest insights, trends and innovations from this sector.

Done!

Thanks for joining the newsletter

Check your inbox for the confirmation email & enjoy the read!

This site uses cookies for analytical purposes.

Accept Privacy Policy

In the interests of your safety and to implement the principle of lawful, reliable and transparent processing of your personal data when using our services, we developed this document called the Privacy Policy. This document regulates the processing and protection of Users’ personal data in connection with their use of the Website and has been prepared by Nexocode.

To ensure the protection of Users' personal data, Nexocode applies appropriate organizational and technical solutions to prevent privacy breaches. Nexocode implements measures to ensure security at the level which ensures compliance with applicable Polish and European laws such as:

  1. Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (published in the Official Journal of the European Union L 119, p 1); Act of 10 May 2018 on personal data protection (published in the Journal of Laws of 2018, item 1000);
  2. Act of 18 July 2002 on providing services by electronic means;
  3. Telecommunications Law of 16 July 2004.

The Website is secured by the SSL protocol, which provides secure data transmission on the Internet.

1. Definitions

  1. User – a person that uses the Website, i.e. a natural person with full legal capacity, a legal person, or an organizational unit which is not a legal person to which specific provisions grant legal capacity.
  2. Nexocode – NEXOCODE sp. z o.o. with its registered office in Kraków, ul. Wadowicka 7, 30-347 Kraków, entered into the Register of Entrepreneurs of the National Court Register kept by the District Court for Kraków-Śródmieście in Kraków, 11th Commercial Department of the National Court Register, under the KRS number: 0000686992, NIP: 6762533324.
  3. Website – website run by Nexocode, at the URL: nexocode.com whose content is available to authorized persons.
  4. Cookies – small files saved by the server on the User's computer, which the server can read when when the website is accessed from the computer.
  5. SSL protocol – a special standard for transmitting data on the Internet which unlike ordinary methods of data transmission encrypts data transmission.
  6. System log – the information that the User's computer transmits to the server which may contain various data (e.g. the user’s IP number), allowing to determine the approximate location where the connection came from.
  7. IP address – individual number which is usually assigned to every computer connected to the Internet. The IP number can be permanently associated with the computer (static) or assigned to a given connection (dynamic).
  8. GDPR – Regulation 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals regarding the processing of personal data and onthe free transmission of such data, repealing Directive 95/46 / EC (General Data Protection Regulation).
  9. Personal data – information about an identified or identifiable natural person ("data subject"). An identifiable natural person is a person who can be directly or indirectly identified, in particular on the basis of identifiers such as name, identification number, location data, online identifiers or one or more specific factors determining the physical, physiological, genetic, mental, economic, cultural or social identity of a natural person.
  10. Processing – any operations performed on personal data, such as collecting, recording, storing, developing, modifying, sharing, and deleting, especially when performed in IT systems.

2. Cookies

The Website is secured by the SSL protocol, which provides secure data transmission on the Internet. The Website, in accordance with art. 173 of the Telecommunications Act of 16 July 2004 of the Republic of Poland, uses Cookies, i.e. data, in particular text files, stored on the User's end device.
Cookies are used to:

  1. improve user experience and facilitate navigation on the site;
  2. help to identify returning Users who access the website using the device on which Cookies were saved;
  3. creating statistics which help to understand how the Users use websites, which allows to improve their structure and content;
  4. adjusting the content of the Website pages to specific User’s preferences and optimizing the websites website experience to the each User's individual needs.

Cookies usually contain the name of the website from which they originate, their storage time on the end device and a unique number. On our Website, we use the following types of Cookies:

  • "Session" – cookie files stored on the User's end device until the Uses logs out, leaves the website or turns off the web browser;
  • "Persistent" – cookie files stored on the User's end device for the time specified in the Cookie file parameters or until they are deleted by the User;
  • "Performance" – cookies used specifically for gathering data on how visitors use a website to measure the performance of a website;
  • "Strictly necessary" – essential for browsing the website and using its features, such as accessing secure areas of the site;
  • "Functional" – cookies enabling remembering the settings selected by the User and personalizing the User interface;
  • "First-party" – cookies stored by the Website;
  • "Third-party" – cookies derived from a website other than the Website;
  • "Facebook cookies" – You should read Facebook cookies policy: www.facebook.com
  • "Other Google cookies" – Refer to Google cookie policy: google.com

3. How System Logs work on the Website

User's activity on the Website, including the User’s Personal Data, is recorded in System Logs. The information collected in the Logs is processed primarily for purposes related to the provision of services, i.e. for the purposes of:

  • analytics – to improve the quality of services provided by us as part of the Website and adapt its functionalities to the needs of the Users. The legal basis for processing in this case is the legitimate interest of Nexocode consisting in analyzing Users' activities and their preferences;
  • fraud detection, identification and countering threats to stability and correct operation of the Website.

4. Cookie mechanism on the Website

Our site uses basic cookies that facilitate the use of its resources. Cookies contain useful information and are stored on the User's computer – our server can read them when connecting to this computer again. Most web browsers allow cookies to be stored on the User's end device by default. Each User can change their Cookie settings in the web browser settings menu: Google ChromeOpen the menu (click the three-dot icon in the upper right corner), Settings > Advanced. In the "Privacy and security" section, click the Content Settings button. In the "Cookies and site date" section you can change the following Cookie settings:

  • Deleting cookies,
  • Blocking cookies by default,
  • Default permission for cookies,
  • Saving Cookies and website data by default and clearing them when the browser is closed,
  • Specifying exceptions for Cookies for specific websites or domains

Internet Explorer 6.0 and 7.0
From the browser menu (upper right corner): Tools > Internet Options > Privacy, click the Sites button. Use the slider to set the desired level, confirm the change with the OK button.

Mozilla Firefox
browser menu: Tools > Options > Privacy and security. Activate the “Custom” field. From there, you can check a relevant field to decide whether or not to accept cookies.

Opera
Open the browser’s settings menu: Go to the Advanced section > Site Settings > Cookies and site data. From there, adjust the setting: Allow sites to save and read cookie data

Safari
In the Safari drop-down menu, select Preferences and click the Security icon.From there, select the desired security level in the "Accept cookies" area.

Disabling Cookies in your browser does not deprive you of access to the resources of the Website. Web browsers, by default, allow storing Cookies on the User's end device. Website Users can freely adjust cookie settings. The web browser allows you to delete cookies. It is also possible to automatically block cookies. Detailed information on this subject is provided in the help or documentation of the specific web browser used by the User. The User can decide not to receive Cookies by changing browser settings. However, disabling Cookies necessary for authentication, security or remembering User preferences may impact user experience, or even make the Website unusable.

5. Additional information

External links may be placed on the Website enabling Users to directly reach other website. Also, while using the Website, cookies may also be placed on the User’s device from other entities, in particular from third parties such as Google, in order to enable the use the functionalities of the Website integrated with these third parties. Each of such providers sets out the rules for the use of cookies in their privacy policy, so for security reasons we recommend that you read the privacy policy document before using these pages. We reserve the right to change this privacy policy at any time by publishing an updated version on our Website. After making the change, the privacy policy will be published on the page with a new date. For more information on the conditions of providing services, in particular the rules of using the Website, contracting, as well as the conditions of accessing content and using the Website, please refer to the the Website’s Terms and Conditions.

Nexocode Team

Close

Want to unlock the full potential of Artificial Intelligence technology?

Download our ebook and learn how to drive AI adoption in your business.

GET EBOOK NOW