The value inherent in data currently held under lock and key should be free. Freedom, as we discovered in human history, produces economic growth. So, it stands to reason that if you want your company to grow, free your data. Is that a workable theory?
All Companies Gather Data
Nowadays, all companies seem to spend a significant amount of time gathering data. I was getting some tires replaced a few months ago, and the process required a significant amount of data input, whereas just a few years ago, they did not even need my name, just the rim size, please. The data input process took longer than the process of replacing the tires, so this got me thinking—is this company in the business of replacing tires or collecting consumer data about tire purchases?
The Data Accumulates and Becomes Valuable
Many companies are doing this now because we all understand that this data can be valuable at some point. We accept that as a matter of fact now. I do not have any accurate statistics on this. Still, I would venture to claim that we only use a small fraction of the data we collect in any company. There are some obvious use cases; for example, I got a call about a tire rotation service from this company. So clearly, they were using my last date of purchase, and the manufacturer recommended a rotation period to enhance their relationship with me. I want to prove that I should return to them with every tire purchase. However, what is the other data being used for? They might have a purpose, but I have been hanging around the IT environments for large enterprise companies for a long time, which is usually different. We are collecting data, and unbeknownst to us, the more we collect, the more valuable it becomes.
How Do You Use Data, Really?
Many people will give you opinions on this. Still, I have seen some incredible ideas, and practical applications from the most surprising places. Usually, the best ideas come from an obvious solution created by someone faced with an expensive or manual process. This is rarely the executive team and not the high-priced consulting firm (sorry, high-priced consulting people). Value from data gets extracted by people solving unique and exciting challenges specific to the business and the division under the burden. Sure, some well-worn use cases happen, and everyone starts to pick up on them. These usually become typical software applications and other tools that people can consume. Still, the new ideas that transform business typically come from pressure.
There is evidence that Datacentric Companies are Better.
I do not have any of this in front of me, but I have sat through hundreds of presentations making this claim that datacentric companies have more growth. There are indications that companies with data-focused initiatives are more profitable and grow faster than those without. One reason cited is improved decision-making, but most studies point to employees feeling more appreciated and engaged in business outcomes. That is an exciting connection.
Freedom Makes People Happy
When a company exposes data to employees, they feel more emboldened to figure things out and look at this data to help them think through and attempt to solve problems. You will hear the buzz phrase, “democratize your data,” but is it really data being democratized? No, it is the people. When the individuals dealing with the problems of the day have access to and can retrieve and use data, they are more likely to solve the issues that are putting pressure on them. People feel more engaged and more empowered.
Accessibility and Transparency
The imperative, if this theory is true, is to increase accessibility to data, be willing to have transparency on what the data actually says, and provide access and tools to employees to learn to work with data to answer questions and to find answers. Someone in the trenches at the tire company may figure out that they can predict when I need new tires and let me know when they have stock and a no-wait appt so I can show up and be out of there in 10 minutes. Chances are someone in that tire company has already had that idea; they are just held captive.
In shocking news, if you want people to be innovative, take ownership, and solve problems that lead to the subsequent profit increase, you must treat people like they can. At the end of the day, if you want your team to behave a certain way, treat them that way by giving them access to data. It’s probably simple to say, but it’s hard to do!
