CEOs are change-makers. In their companies, they lead the pack, make critical decisions, and ultimately steer their businesses toward success. Yet, over the last few decades, the active role of a CEO has begun to shift. Instead of making instinctive decisions, businesses are utilizing the power of data-driven analytics to steer their businesses more than ever. This poses the question: how exactly do CEOs come into the picture when data provides a clear picture of the steps a business needs to take?
The power of data is undeniable. Data suggest that businesses that fully embrace data-driven decision-making are 23x more likely to capture new customers, amongst several other business-defining benefits that could make or break a company. However, while many companies understand the importance of pursuing a data-first strategy, not everyone manages to do so effectively.
Beyond just crunching the numbers, CEOs are vital because they provide a cultural context that all of their employees can follow. By leading from the top and demonstrating how integral a data strategy is, CEOs can inspire success at all levels of their business. In this article, we’ll dive into how CEOs can better participate in this data-first age, documenting leading strategies to bring companies firmly into the digital age.
Let’s dive right in.
What Are the Benefits of a Data-First Strategy?
Moving toward a data-first strategy has been a leading effort for companies over the last decade. In light of a transforming level of data modernization across the globe, businesses that haven’t started to adapt are already being left behind.
The fact is that data-driven decision-making is so powerful that essentially any department of a company can integrate it and take advantage of the various benefits that it has to offer. For example, businesses that embrace a data-first strategy can:
- Improve Decision-Making – Whenever a business is faced with a decision, the abundance of data allows for a clear pathway to appear. Instead of guessing, leaders can simply look at the data and forecasting models to see which decision holds the higher probability of leading toward success. Not only does this lead to better decisions, but it also helps to improve the speed and mobility of a company.
- Understand Customers Better – Every time a customer clicks on your website, goes on your social media or interacts with your brand in any way, they leave a trail of data that your business can use. By focusing on customer metrics, engagement, and interaction, you can develop a clear picture of what your customers like and dislike. From there, businesses can develop better customer experiences and satisfy at every turn.
- Real-Time Change – Modern data analysis tools can provide live insight into how customers react to your company. By following these trends from both internal company data and wider industry data, you can develop more effective strategies to push your company toward success in the future.
With all these advantages and many more, there’s a solid reason why 97.2% of businesses across the globe are actively investing in big data for their business. Yet, accessing sources of data doesn’t necessarily equate to a successful usage of said sources. That’s where CEOs come in.
How Can CEOs Increase Data Modernization in Their Business?
CEOs are one of the most active participants when it comes to effectively embracing data-first strategies. As CEOs can often define and enforce a certain company culture, they essentially have the keys to determining the strategies that all levels of their company rely on.
With that in mind, here are some strategies that CEOs can utilize to ensure that their company successfully incorporates and sustains a data-first strategy in 2024.
Focus on Demonstration
When thinking of a business as a pyramid, every single choice and decision that the CEO makes will trickle down to impact other levels of management and workers. If a CEO wants their company to embrace data in everyday operations, they must lead by example.
Whenever a CEO contacts different departments or holds meetings with different members of the C-suite, they should focus on putting emphasis on the importance of data above all else. Leading by example and including insights, analysis, and statistics from internal data where possible will show employees that this is the new standard that the company is looking for.
Where possible, lead by example and demonstrate the utility of data. As the CEO continues to place data on a pedestal, other levels of management will follow.
Defeat Data Silos
Another vital part of creating a fully data-first organization is to ensure that a business has the tools necessary to manage data. Beyond just finding flashy analysis tools, CEOs should focus on constructing a strong base of operations. Most of all, they should ensure data democracy across their organization.
One powerful way of achieving this is to start working with a centralized cloud data warehouse. Instead of having various data repositories across a business (which could lead to data silos), a data warehouse approach will ensure that all employees have access to the data they need to excel.
Assemble a Data Quality Team
No matter how much data your business collects, if it’s all low quality, then you’ll struggle to draw useful insights. In fact, you could simply overwhelm your data teams without any real benefit.
Instead of focusing on quantity, CEOs should emphasize the importance of data quality throughout the entire data pipeline. CEOs should endeavor to assemble a data team that will manage the entire process. While it may seem costly to have a team that’s only dedicated to managing and processing data, it will pay off in dividends in the long run.
As a CEO has the power to structure and restructure their business, focusing on building data teams will help to unlock the potential that data has for a company.
Final Thoughts
While the vast majority of the world has already realized the power that data holds, its true success in a company depends on the ability of a CEO to influence change and embrace a data-first strategy. By leading the charge and adopting data-driven decision-making where possible, CEOs can propel their business to new heights.
Across the strategies, tips, and methods outlined in this article, CEOs can create a more effective plan to bring the power of data into the heart of their business. Leading from the top down, CEOs have the unique ability to affect change across the entirety of their businesses. For companies that want to fully step into the digital age, CEOs are the key.
