The Case for Smart Data: When Big Data Isn’t Enough
Every two years, the typical company doubles the amount of data they store. However, this Data is inherently “dumb.” Acquiring more of it only seems to compound its lack of intellect.
When revitalizing your business, I won’t ask to look at your data – not even a little bit. Instead, we look at the process of how you use the data. What I want to know is this:
How much of your day-to-day operations are driven by your data?
The Case for Smart Data
I recently learned that 7-Eleven Japan has pushed decision-making down to the store level – in fact, to the level of clerks. Store clerks decide what goes on the shelves in their individual 7-Eleven stores. These clerks push incredible inventory turns. Some 70% of the products on the shelves are new to stores each year. As a result, this chain has been the most profitable Japanese retailer for 30 years running.
Instead of just reading the data and making wild guesses on why something works and why something doesn’t, these clerks acquired the skill of looking at the quantitative and the qualitative and connected dots. Data told them what people are talking about, how it’s related to their product and how much weight it carried. You can achieve this as well. To do so, you must introduce a culture that emphasizes discipline around processes. A disciplined process culture uses:
- A template approach to data with common processes, reuse of components, and a single face presented to customers
- Employees who consistently follow standard procedures
If you cannot develop such company-wide consistency, you will not gain benefits of ERP or CRM systems.
Make data available to the masses. Like at 7-Eleven Japan, don’t centralize the data decision-making process. Instead, push it out to the ranks. By putting these cultures and practices into play, businesses can use data to run smarter.