Why do so many businesses struggle to use data to gain a competitive edge?
According to Thomas Davenport’s book, “Competing on Analytics: The New Science of Winning,” the top businesses go beyond merely gathering data. They are developing competitive strategies based on data-driven insights, and these strategies are producing excellent business results. Organizations are compelled to use their data to make decisions in order to stay competitive. According to recent global survey from Accenture, although the majority of firms that utilize artificial intelligence (AI) are still experimenting with the technology, only 12% are employing it at an AI maturity level that results in a significant competitive advantage.
Why can AI only be used as a competitive advantage by a select few businesses? Let’s attempt to determine the solution to this query.
Even though the majority of businesses have vast amounts of data, they are unsure of how to use it most effectively. Big data access does not necessarily enable us to make the best decisions, thus it is crucial to comprehend the proper approach to data. It is not about Data to Decision, Decision to Data is crucial initially.
Traditional approach to Data
The majority of traditional organizations view AI as an IT department responsibility, making them the primary stewards of AI solutions. With the aid of IT teams, their main responsibility is to transfer data to Data Warehouses or Data Lakes. Using the data, tools, platforms, and other resources at their disposal, IT teams then produce reports and dashboards.
As a result, these companies rely on insight based on their own resources, such as personnel, technologies, and platforms, rather than on what the business actually requires.
Data approach for Competitive Advantage:
The proper strategy begins with the business issue. What is the issue that the business wishes to address or concentrate on? Next, take a look at the data that is accessible and the methodology needed to obtain the solution or collection of solutions. What internal and external data sources are necessary? What method and tool are best for this issue? What skills are required to make this all happen?
One can have a higher level of intelligence to work on creating a competitive advantage after answering all of these questions.
The degree of intelligence one can extract from the data will have a significant impact on how successfully one can create competitive advantage. Greater intelligence translates into finer insights.
Higher level intelligence can only be utilized for the organization’s competitive advantage. Where the conventional method merely leads to what occurred? And what caused it? The new method, which begins with the business problem’s forecast and optimization, revealed key insights crucial for building Competitive advantage.
To obtain a competitive edge, businesses should give top priority to creating a thorough data strategy, investing in data quality and analytics technologies, and cultivating a data-driven culture.
