In our previous blog post, we identified “Missed Business Performance Opportunities, Issues & Green Shoots” as trying to be driven in both strategic and operational decisions. We uncovered a startling statistic that less than these businesses conduct regular weekly performance checks on their KPIs (source: Box survey).
So, the quest to overcome these challenges continues, urging businesses to prioritize and establish robust metric governance.
“But traditional methods of data analysis and reporting have proven an overwhelming abundance of data without significant improvements in decision-making.”
There is a case for embracing cutting-edge tools that provide real-time deflection and alerting product metrics. In today’s blogs, let’s delve into AI-powered poised to revolutionize how organizations uncover valuable data.
Unlocking the Data Rich, Insight Poor Dilemma:
Are You Drowning or Sinking?
“According to research conducted by Forrester, organizations that leverage data for decision-making have a 58% higher likelihood of exceeding their revenue targets. Moreover, the study reveals that businesses that are adept at utilizing data are 16 times more likely to achieve substantial revenue growth compared to less proactive counterparts.”
But in the era of data-driven decision-making, businesses face a critical challenge: being data rich but insight poor. But what does it really mean? To truly grasp the challenges at hand, it’s time to put on your Chief Digital Officer cap and take a seat at the Weekly Business view of your bustling e-commerce company on a Tuesday morning! The stage is set for a pivotal moment, where the fate of your business hangs in the balance. The journey begins now.
The Weekly Business Review: A Tale of Tangled Data and Elusive Insights
As you enter the conference room, you notice your fellow executives squinting at the 8-point font of the 30-page Excel printouts, desperately trying to decipher tangled web of data. The room is filled with tension, as everyone struggles to make sense of the secrets of the universe or simply figure out what changed last week and its corresponding impact to them..
Each executive clutches a script or talking points provided by their respective teams. You realize that a significant amount of pre-work and analysis has gone into identifying and prioritizing what’s important for this recurring and often contentious meeting. However, something feels off. Different versions of the story emerge, depending on which dashboard each team is using.
“The Swimwear team claims that performance is down by 5% due to lower traffic, while the Marketing team points fingers at overspending on traffic.”
Conflicting narratives lead to a multi-day fire drill involving both teams and analysts. Everyone scrambles to the issue, identify the source of discrepancy, and their findings. This is just the tip of the iceberg.
As the WBR progresses, more issues triggering a series of follow-on analyses and fire-drills. The analysts, product managers, and engineering teams find follow-up questions. The entire process becomes a time sunk, consuming valuable resources and hindering progress.
“No wonder, 71% of meetings are considered unproductive, costing around $37 billion annually and waste 24 billion working hours.”
With each passing week promising deep dives into the intricacies of the business. However, the meeting loses its actionable insights, improved decision-making, and meaningful business outcomes. Instead, it becomes fixated on the Urgent versus the Important, as they are the easiest to identify and act upon. Instead, it becomes fixated on the Urgent versus the Important, as they are the easiest to identify and act upon.
“It is time for a change. The WBR, once a vital tool for aligning teams and fostering collaboration, has transformed into a convoluted devoid outcome.”
A few common threads start to emerge from this chaotic cycle.
First, the production costs associated with preparing for the WBR skyrocket. The amount of pre-process required to gather and review the ever-growing pile of “What has Changed?” data becomes overwhelming.
Second, the team’s analysis is predominantly based on known knowns – relying on past experiences and the data available in the metrics.
It is clear that a significant portion (about 20%) of team bandwidth is being consumed by these fire drills. Analysts are stretched thin, spending nearly 50% of their time on resolving issues that arise during the WBR. The real work, the strategic projects and initiatives that could propel the business forward is often overshadowed.
Unveiling the Data Iceberg: What Does Data-Driven Decision-making Approach Mean?
Now let’s take a pause and Imagine data as an iceberg, with only a fraction visible above the surface. The real value lies beneath, in a complex and expanding collection of data sources.
The most common metrics are known knowns metrics, which are the key performance indicators (KPIs) or metrics that are well-established, understood, and regularly businesses. These metrics are considered known knowns because they are familiar, predictable, and provide a clear understanding of specific aspects of the business. Typical questions include total sales revenue for a specific time period, average order value (AOV) for customers during a given period, conversion rate from website visitors to customers etc.
But the approach towards known knowns is centered around a mindset. Businesses must look beyond the Known Knowns, metrics and data already familiar to them, and venture into the realm of Known Unknowns—questions we know but lack answers for. Investing in expensive experimentation where it matters and inexpensive casual impact helps address these challenges, although tunnel vision without modern advanced analytical technologies.
Then there are Unknown Knowns Unknown Knowns, a concept popularized by former U.S. Secretary of Defense Donald Rumsfeld in 2002. It refers to the knowledge that individuals or organizations possess but are not consciously aware of or do not actively acknowledge. Identifying and bringing these known unknown knowns to hidden insights, challenge existing beliefs and more informed decision-making.
The most intriguing aspect lies in the Unknown Knowns Unknown Unknowns—the questions we haven’t ask yet, with the potential to reshape our understanding.
Out of the Shadows: Harnessing Advanced Algorithms for Growth
“Data-driven organizations, according to the McKinsey Global Institute, are 23x more likely to acquire customers, 6x more likely to retain customers, and 19x more likely to be profitable.”
By connecting the dots and reframing questions, businesses can explore the unknown, learn, and innovate. However, manual insight discovery efforts fall short, taking an extensive amount of time as we saw earlier.
AI based technologies By connecting the dots and reframing questions including continuous and comprehensive augmented analytics By connecting the dots and reframing questions holds the key to proactively detecting abnormal spikes, uncovering leakage and slow-moving changes, and identifying green shoots and missed opportunities. When detect anomalies, analysis helps businesses understand why something is changing and what they could take action on. By connecting the dots and reframing questions harnessing advanced algorithms and cutting-edge techniques.
Bid farewell to information overload and embrace actionable insights with Out of the Blue!
Out of the Blue recognizes that uncovering valuable insights lies in addressing the realm of unknown unknowns. We eradicate the need for manual data processing, reduce production costs, and deliver near real-time insights that drive superior decision-making. Through the detection of abnormal spikes, trend identification, and addressing unknown known unknowns connecting the dots and reframing questions, organizations can make propel business growth.
In our next post, we delve deep into each of these data insights to show how they present new opportunities for growth
Discover how Out of the Blue’s augmented analytics platform can transform your business. Book a call to learn more.
