Data driven: definition and challenge for the company | IPAG Business School

In the face of the proliferation of information, otherwise known as big data, many companies rely on data analysis to make strategic decisions and improve their performance. A company that is driven by data is called a data-driven company. What is the benefit of a data-driven company and how can it be implemented?

What is data driven?

The term data driven describes any organisation that is data driven or data centric. A data-driven company uses data analysis technologies to guide its organisation. Strategic decisions are then based on data, rather than intuition, experience or the external environment.

What is data driven for?

Deploying a data-driven approach enables a company to obtain relevant and reliable information on the chosen business strategies. This approach offers a global view of the organisation and immediately available information. With data driven, databases are centralised and accessible to all decision makers. A data-driven company is then able to use the right data at the right time to make the right decisions.

As a result of the digital transformation, companies are collecting various data from connected objects, social networks and websites. The use of data-driven information also provides insight into customer behaviour, competition and market trends. Access to this data helps companies to anticipate consumer reactions in order to improve customer loyalty and experience.

Data driven is also proving its worth in predictive analysis. To predict trends, we can see that artificial intelligence is gradually becoming part of the daily life of companies. This is an opportunity for data-driven companies to benefit from the rise of AI and integrate it into their data governance.