Why data-driven companies outperform the competition

Bilde av Kurt S. Helland
by Kurt S. Helland

25. May 2021, 3 minutes reading time

Why data-driven companies outperform the competition

Right answers exist, but are you harvesting data to find them – or simply guessing? For organizations still relying on gut decisions, the clock is ticking louder than ever. Because while disruption might be born of groundbreaking ideas, most of the time it is about having the right ideas. Here is why data-driven companies outperform the competition.

It is no hyperbole to say that we are standing on the brink of a data revolution. For some sectors, it really is now or never. Adapt – or get left behind. Above all, this speaks to the power of being data-driven. It is not that you cannot do business as usual, but that the competitive advantages of data-drivenness are simply too many – and too significant. 

Better at every metric

Even though a lot has happened over the last couple of years, reaping vast benefits from data-based decision-making is in itself nothing new. After all, data is just insight – our cumulative experience. But the writing on the wall has become increasingly clear. A study released by McKinsey back in 2013 concluded that data-driven companies are no less than

  • 23 times more likely to outperform competitors when it comes to new user acquisition
  • 19 times more likely to be above averagely profitable

These companies also demonstrate customer retention and customer loyalty magnitudes higher than that of their competitors. In fact, across virtually every single KPI – across the entire customer lifecycle – these data-driven companies reveal a significantly higher likelihood of above-average performance.

Profitability and efficiency

With data fueling both business development and marketing, the benefits for the top line are obvious. Seizing new possibilities, capturing larger market shares and pivoting when necessary are all easier when you let data guide the way. But being data-driven also allows you to outperform your competitors through increased efficiency.

First of all, you can automate manual processes that confiscate valuable time and human resources. Running a leaner operation not only lowers your cost basis, but with your own house in order, you have more attention and resources to allocate outside of it. Secondly, with data as the decision-making foundation, you can effectivize the entire chain from market analysis to sales to implementation. If you crack the code of matching external/public market data to your own, you are always up to date – and always agile. 

The greatest asset

Lastly, there is a self-reinforcing element at play in the market dynamics of success. Because, despite all their data-drivenness, the best organizations employ the best people. Until the AI singularity disemploys us all, we are still dependent on great minds to drive us forward. And put simply: Top people want to work at top companies.

This is why you should not underestimate the signaling effect of being at the bleeding edge of this fourth industrial revolution. Being a truly data-driven organization, a driver of innovation – and loud about it – increase brand awareness, augment market sentiment and attracts tech-savvy, aspiring young talent. 

And with data as your compass and the brightest people at the helm, the competition stands no chance. 

How to make more strategic corporate decisions based on data

Kurt S. Helland

Kurt S. Helland

Kurt is Executive Chairman of the Board at BI Builders and has several years of experience as a senior manager in the ICT, visual communication, finance, and banking industries. He can assist any organization to become more data-driven through comprehensive automation and proven industry experience. Kurt has a passion for football, cycling, golf, and skiing.

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