Data transits to business databases, and its importance for business is growing at a dramatic pace. The time has come to embark on a process of change enabled by technological development.
Published 5th April 2019
"In today’s world, regardless of the industry, companies providing the best customer experience tend to be the winners of the game," says Matti Ristimäki, Director, Data-Driven Business at Tieto Corporation. "Developing services or products and a marketing plan is no longer a sufficient set of measures. We need to work with authentic needs based on detailed customer understanding."
Today, this understanding is largely based on actual data. Data also brings predictability to activities, helping to identify customer needs and deliver the right messages and content ̶ at the right time, using the right channels.
With a data-driven approach orientation, the company can also optimize its purchases and streamline its production chain.
"It is a positive and self-reinforcing cycle", Matti Ristimäki points out. "New data enables better customer understanding. It provides more accurate information on customer needs and additional data for development."
Most Nordic companies are fiercely moving towards data-driven business models. It is vital to seize opportunities quickly, otherwise one of the competitors will be doing it. Furthermore, one needs to be patient when waiting for the results.
"Success requires a thorough understanding of customer and industry logic, and this takes time", Ristimäki says. "When seeing the commercial success of data-driven companies like Netflix and Airbnb, all the hype around it gives us the false impression of everything happening overnight.
Ristimäki therefore recommends that the company set both short and long-term goals for its operations. Even if quick wins are smaller, they reinforce that the direction is right. Ultimately, all the activities are carried out to achieve long-term success with data control.
He emphasizes that data-driven technologies are already widely used and that the development of the most advanced artificial intelligence is usually not necessary. The most important thing to think about is how to modify your business or even your entire business model with data.
Matti Ristimäki's three keys to success in data-driven transformation:
1. Commitment of senior management. The approach is not a mere upgrade of the IT department, but rather enterprise-wide project.
2. Business-driven mindset. The change is not meant to be a technology exercise. It is rather build based on the demands of the business.
3. Capacity building. Developing technical capabilities to collect, analyze, and activate raw data. Technology is an enabler, not an intrinsic value.
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