Caroline Carruthers
Award-winning data expert, author and co-founder of global data consultancy Carruthers and Jackson
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To say we are living in uncertain times feels like a bit of an understatement. The pandemic changed the way we work and live overnight, and we’re now on the cusp of a global recession coupled with disruptions in the world’s supply chain… you could be forgiven for thinking that Chicken Little is coming around the corner any minute to tell us that the sky is falling.
It’s worth pausing to reflect on what we do know, and how that can help us not only survive the unknown waters ahead but seize the opportunities that dwell within.
Getting back to the data
One thing that strikes me is that when times are uncertain, people fall back onto data to help them navigate a way forward. Look at what happened during the pandemic: charts were the mainstay of every news report, people dissected data from news sources, government, social media – anything that helped them understand and make sense of what they were seeing around them.
People are facing another critical period and we are once again looking to data for the solution.
With the looming threat of recession, the same behavior is apparent. People are facing another critical period and we are once again looking to data for the solution. As a result, data is impacting decision making, with the average monthly searches about the cost-of-living and related topics – including energy bills, food prices, inflation, interest rates, mortgage rates, petrol prices, tax cuts, and pay rises – all increasing in the autumn of 2022. This is supported by the change in behavior since the cost-of-living crisis, which has consequently driven a 467% spike in people searching for ‘how to reduce energy bills’ online.
When times are more comfortable, we don’t tend to pay attention to this sort of risk-aware behavior. But businesses should take notice of what the data is saying, both in prosperous and in more challenging times. Organizations have relied on data for a long time, whether that is a BI report or a CRM to provide information about their customers. When the way forward isn’t easy or clear for them, though, it’s the data they need to fall back on and really use as an asset to get more for the company.
Here’s a quick caveat: it is not and cannot be about just collecting data for the sake of it – it needs to help you solve problems or create tangible value for your business. We risk becoming nothing more than data dragons, like Smaug sitting on a pile of data which might entrance us with its shiny appearance and volume. You would not hire people without knowing what role you wanted them to fulfill, or buy a building without a need for change – so why hoard data without knowing how you are going to make it work hard for you?
Data can appear to be complicated – it’s not. It is the simple, little building blocks in your business which, by collecting, curating, and contextualizing, becomes useful. It aids decision making, drives outcomes and uncovers opportunities you couldn’t see before.
Data can appear to be complicated – it’s not. It’s also not the complete answer either. It is the simple, little building blocks in your business which, by collecting, curating, and contextualizing, becomes useful. It aids decision making, drives outcomes and uncovers opportunities you couldn’t see before. Using data correctly within your digitalization agenda means you know that you are driving in the right direction and can do so with confidence.
The term ‘data drives digital’ is commonplace – it’s the right fuel for the new engine – but digitalization isn’t delivering all that it’s supposed to. Or are we confused?
Digitization or digitalization?
We are still seeing businesses confusing digitization with digitalization and wondering why their programs or transformations aren’t delivering what was needed. The first converts analog into a digital format, or ingests the same data from old technologies into new systems – essentially doing what you did before but with a new shiny tool.
Digitalization, on the other hand, is the process of using digital technologies to change your business model. It’s not as simple as putting in new technology and expecting all our issues to disappear with the flick of a switch. That being said, it doesn’t have to be overly complicated either.
It is obvious why this happens: businesses want results and in the fast-paced changing world we live in, those results need to be delivered quickly. It’s easy to talk about results as a system delivered or a project completed – it ticks a box. Digitalization doesn’t tick a box, but rather drives an outcome.
Ask the data specific questions that will either validate your current course or deliver evidence to make a change, then turn that into action through digitalization.
This is where you should be using your data, to uncover the patterns that cause your problem and highlight areas that are potential gold mines. Ask the data specific questions that will either validate your current course or deliver evidence to make a change, then turn that into action through digitalization.
Think about digitalization as a journey up a ‘value mountain’, in which you’re constantly checking if you are still on track to reach your intended goal. Each step forward gives you a number of opportunities: one is to solve a problem along the way, and another is that – from your more advanced viewpoint – you can decide whether your intended destination is still the best place to aim for. You can course-correct around obstacles while keeping your eyes firmly on where you are aiming.
Data and digitalization aren’t some panacea that will do all the transformational heavy lifting for you (nor should they be). An asset, initiative or transformation that sits isolated from the greater good is doomed to have limited impact. They are there to form not a hoarded pile of data, but rather a mountain for us to stand on, enabling us to see further and do more. Data, digitalization or anything else you can think of isn’t what makes the difference – action is.
