Statista measured a 12% increase, compared to 2018, in the adoption of a global data-driven approach for decision-making. Here's what is driving this change.

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Data-driven approach, what is it and why does it increase competitiveness

What is a data-driven approach

Adopting a data-driven approach means making strategic decisions based on data analysis and its correct interpretation. A data-driven company is one that adopts a data-centric culture. It focuses on the aspects that generate value, learning to collect data, prepare it, integrate the data coming from different smart and IoT solutions, analyze them, solve critical issues, and do storytelling using data.

 

According to the Milano Polytechnic Internet of Things Observatory, in 2020 the market for IoT equipment and solutions has withstood the impact of the pandemic, reaching a value of 6 billion Euros (it was worth 5 billion in 2018). There were 93 million active IoT connections in Italy, of which 34 million cellular connections (+10%) and 59 million enabled by other technologies 15%). Smart Agriculture, Smart Factory, Smart Logistics and Smart City are the fastest growing areas. In companies using the IoT, it is clear that data collected through appropriately analyzed smart devices, allows you to work better and, consequently, offer a better service to customers (B2B) and consumers (B2C).

 

Why the data-driven approach increases competitiveness

The data-driven approach increases the competitiveness of a company because it allows you to identify, combine and manage multiple data sources, building advanced analytics models in real time. In this way, you understand where and how to optimize processes and the use of resources and, as a result, compete better in the current market. A market where customers change, scenarios become more complex, and enterprises need to transform themselves to grow and to become more integrated and resilient.

 

In fact, the new digital scenario imposes agile, flexible and innovative business models. To be built based on a solid technological architecture, the right skills in the company - in data management, data collection (data quality), business intelligence (BI), big data and analytics - an integrated approach to data sourcing and model building allows employees of all levels to ask the right questions to machines and data, to create added value, make the best decisions and strengthen the actions of employees and management.

 

A data-driven approach allows all professional levels, in particular top and middle management, to access crucial information faster and immediately, thanks to data visualization (innovative, dynamic and interactive graphs), without having to wait for periodic, standardized and static reporting. A data-driven  mindset allows you to be always updated on the production or sales situation, ready to compete in current markets with the most effective strategy.

 

A data-driven approach also increases the security levels of the production chain, directs marketing through automated campaigns, offers customer assistance via artificial intelligence (AI) services... But you need the right resources and partners to benefit from these possibilities: IoT experts, artificial intelligence (AI), analytics and big data are welcome to evolve the way you do business according to the new data-driven logics, redesign the core processes and record performance increases that have not been seen since the nineties (source: McKinsey).