Ever wondered how growing companies dance with their data?
Organization level II
“In God we trust, all others bring data” – Edward Deming
We live in a very challenging and competitive environment. One that is not very accommodative to growing companies. Organizational level 2 is the term attributed by us to the next stage of companies. We also call then Growth Companies, as they have grown in size and revenue when compared to a startup or a small business. They usually have three levels of hierarchy with the middle level helping the management in taking decisions while executing the policies set by the top level and the lower level is in charge of executing the decisions laid out. Growth companies are more structurally defined and roles clearly demarcated when compared to a startup. There exists a great level of autonomy in their functioning. Management tend to focus their efforts on the broader picture while day to day functioning is taken care by the middle/ lower levels. This level is characterized by a robust accounts department. Roles are defined on a proper analysis of individual strengths and weaknesses and this helps capitalize on individual competencies. These companies are more in tune with the market which gives them a greater advantage in terms of market driven product development.
In a day and age of data driven proficiency, it is imperative that companies focus their narrative on data. Growth companies are clogged with issues related to Management Information System (MIS) as historical data from accounting is not utilized to make future decisions. These entities focus solely on past decision patterns and rely on the instinct of the top management to make future decisions. Human capacities are utilized to retain and store important information where there are bound to be lapses. Employees cannot be held accountable for their lapses as there are insufficient data to implicate them. There is a skewed mindset towards increase in revenues and every effort is spent to realize this very purpose.
How can data analysis help these companies?
One of the key strengths of growth companies is their structured accounts department. However, their accounts are maintained with a focus on the regulatory aspect. Besides being a legal requirement, accounting can be massively used to focus on the future decision making and measuring performance on a more periodic manner. The data can be fueled to streamline transactions. A proper reporting system which is inclusive of well documented data can help drive many management decisions. Structured processes which are utilized to collect and analyze data will help accelerate the growth process. Analytics can help a company measure the efficiency for example in marketing analytics can help track their content in terms of page views, bounces etc. Certain other tools are utilized to track and study how customer moves from one stage to another. Such tools which track usage and patterns can provide insights into areas where improvement is needed.
Various benefits of data analytics are:
1. Help in planning ahead. It gives insight into areas where the company is weak and as well as directions towards correctives measures.
2. Lead generation – a vigil into social media platforms gives insight into evolving customer preferences and patterns. Incorporating these platforms will enable the company to gather information on the channels utilized by prospective consumers.
3. Idea to reality – Growing a business is a mammoth task. Data can give us real time information on the acceptability of products and also guide us on turnaround strategies.
4. Quick and accurate decision making – Analytics helps take decisions quickly rather than being blindsided by guesswork.
5. Efficiency and productivity – Data provides the lead time to reduce cost in processes.
In short data analytics is more than just tarot card reading or crystal ball gazing. It gives insight to make data driven predictions and growth strategies.
Guiding Points for Growth Companies::
- Imbibe a data driven culture.
- Inculcate data driven decision.
- Infuse the culture of data flow freely.
- Ingrain in the workforce the relevance of data.
- But amidst all this, don’t miss the human detail.
Nu-Pie provides analytics products and services that help growing companies to achieve its potential. Click here to talk to us for more details.
Author: Jerrin Thomas; Co-Author: Benila Jacob