Data-Driven Innovation: Turning Insights into Action

The Benefits of Using Data as the Central Focus of Your Strategy

Before looking at how to embrace data-driven innovation, you must first ask why it’s important.

Research shows that data-driven organizations are 23 times more likely to acquire customers and six times more likely to retain them. Every great innovation is sparked by an idea, which itself has come from gaining a valuable insight. When insights stem from data, they can inspire valuable action. 

Data-driven innovation unearths clear and objective facts, establishes feedback loops for real-time collaborations, and supports agile organizations by highlighting opportunities or gaps in the market that can be exploited. Innovation often revolves around customer-centric ideas and data can help to identify individual behavior patterns as well as important demographic trends.

Crucially, using data insights obtained to guide the strategy removes emotion from decision-making processes. The focus subsequently shifts to quality ideas rather than worrying about which employee introduced each idea, which naturally encourages a company-wide buy-in. With more innovators on the job, the volume of ideas presented will increase as well.

How to Transform Data Insights into Actionable Strategies

Embracing data-driven innovation can feel like a difficult concept. However, focusing on the following five steps should transform your approach to utilizing data in corporate innovation.

1. Choose the right tools

Studies show that 62% of high-growth companies plan to invest in technologies that lead to higher rates of innovation, compared to 54% of other companies. The right tools should be capable of turning big data into actionable insights. rready's Innovation management solutions, offer advanced data tracking and visualization capabilities. Using a customized dashboard, program leads can measure progress effortlessly and depending on the results, take adequate actions to improve the program.

2. Analyze as much data as possible

Having the tools to analyze big data is one thing, but it’s equally important to collect data from as many angles as necessary. Companies that are driven to continue improving their products or services, prioritize collecting user experience and customer feedback. So, collecting data in relation to these two elements is essential. When analyzed in relation to the right Key Performance Indicators (KPIs), actionable steps will become clearer.

3. Emphasize the focus on data

Data-driven innovation can only lead to action if employees appreciate the importance of data insights and know how to use them, as well as act upon them. 59% of executives aren’t sure they have the right people to deliver high-quality innovation. In most cases, the real problem comes from a lack of training and emphasis on making data-driven decisions. Placing value on data in the innovation process is vital.  

4. Bring teams together

Analyzing data, especially with clear objectives, will lead to powerful insights. Multi-departmental collaborations facilitated by tools like KICKBOX Intrapreneurship, create greater transparency for the entire business. Actionable strategies are subsequently formulated with the best intentions of the organization in mind.

5. Learn how others utilize data-driven innovation

When thinking about how to turn insights into actionable strategies, taking inspiration from other organizations can be helpful. Netflix and Game of Cards is a fascinating story of how data can be used to inform decisions. There are many other examples of using data to highlight opportunities for companies to improve their offerings.

Implement Data-driven Innovation

Perhaps most importantly, businesses can only embrace data-driven innovation if they make a full commitment to it. While a mindset shift is crucial, equipping yourself and your team with the right tools to harness data and implement data-driven strategies is equally vital.