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The Importance of Data Democratization

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It is no secret that access to data is a critical component of long-term success for any business. But simply having the ability to view data is only one part of a solid analytics strategy. Ideally, everyone in your company will not only have access to data, but also be able to understand that data to help drive decisions. This concept is known as “data democratization,” and it is becoming increasingly important within the workplace. 

What is Data Democratization?

At its core, data democratization makes data a shared resource, empowering employees at all levels to use it for the benefit of the company. Historically, data was something of a mystery to the majority of employees within a company, even leadership. Specialists were needed to gather and interpret the data, which left data-driven decision-making up to a select few.

Today, we understand that data is no longer a luxury when it comes to remaining competitive. It has become fundamental in driving many business decisions, fueling critical insights into customer needs and behavior. Democratization of data aims to make these insights accessible to everyone, regardless of technical training. 

Importance of Data Democratization

Informed Decision-Making

More information is never a bad thing when it comes to decision making. Democratizing data enables employees across departments to access and understand relevant information that may help them make better decisions and achieve goals more quickly.   

Competitive Advantage

Organizations that embrace data democratization gain a competitive edge. Timely access to insights by multiple individuals allows companies to adapt swiftly to market changes, identify new opportunities, and stay ahead of the competition. More eyes on the data also mitigates the potential for loss of business due to simple technical errors.

Innovation and Creativity

Breaking down data silos encourages cross-functional collaboration, fostering an environment where innovative ideas can flourish. Furthermore, team members whose ideas are rooted in data may feel more confident in making suggestions. After all, metrics add a layer of legitimacy to an idea that is hard to ignore. 

So, How Do You Democratize Data?

Democratization of data will be an ongoing process that you will need to monitor and adapt as your business grows. While the goal is to expand data literacy among your organization so that you do not need a specialist, you will still want to start the process with a professional analytics firm. 

Up to 70 percent of businesses fail when trying to implement a large-scale digital transformation. This is largely due to a siloed approach to the work ecosystem, with little-to-no emphasis on communication and collaboration between departments. Long-term success with your data democratization entails a company-wide effort. Your analytics consultant will help you avoid being part of that 70 percent by building a sustainable democratization strategy with the following benefits:

Data Governance and Security

First and foremost, you want to be sure that the data you are viewing is reliable, relevant, and secure. An analytics firm can implement data governance frameworks to ensure quality and compliance, so there is no question of your data’s integrity. 

User-Friendly Analytics Tools

Implementing intuitive and user-friendly analytics tools simplifies the process of data analysis for non-technical users. Analytics firms can recommend or develop platforms that cater to various skill levels, ensuring that everyone can derive insights from the data.

Visual dashboards and reports, for example, can be adapted to the specific needs of different departments. This customization ensures that employees receive the most relevant information for their decision-making processes.

Training and Education 

Analytics firms can provide training recommendations to enhance data literacy across the organization. They can offer suggestions for ongoing skill-building with regard to data interpretation and implementation. A good analytics firm is always willing to consult with you about better ways to understand your data and put it to good use.  

Build Your Data Democratization Strategy Today

As we have seen, data democratization offers too many benefits to ignore; yet, the process can feel daunting. Identifying the relevant data, implementing training programs, developing custom visual representations, and the many other tasks associated with data democratization is time consuming, to say the least. Let a dedicated analytics firm help you develop and implement a solid data democratization strategy that allows you and your employees to use your data to the best possible advantage. 

In Colorado, Impact by Insight is a top analytics firm that specializes in custom visual dashboards to make your data meaningful and actionable. We want our clients to feel empowered by their data, not intimidated. We will work with you every step of the way to develop a data strategy suited to your unique goals and needs. Call or go online today to set up a consultation. We look forward to helping you! 

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