Use it. Or lose it. Your data, that is.
Data science is still a field finding its potential and more and more business owners are realizing the power in leveraging data to identify new opportunities or threats.
It helps that data is more accessible than ever. The internet and industry trends are moving towards open data (also known as data that is available to anyone and not proprietary), meaning that anyone can become a data analyst if they’re willing to put in the work (more on the data skills gap later).
With all this open data, you may feel tempted, as people typically have a hard time turning down anything that’s free and seemingly easier. It is a common misconception that open data may have already done some of the work for you, however I’m telling you to resist that temptation. At least for now. Instead, following these four steps can assist you on focusing on your own data which can have major benefits in the long run.
1. Know Yourself
You’ll always know your own data best. As easy as it may be to understand open sourced data, it will never match up with the knowledge you gain by getting your hands dirty through your own data collection.
As a writer for Channel News, Asia, Paul Cobban experienced the hard work and reward of data collection in the banking industry. Banking is an industry that has historically collected mass quantities of consumer data. For an industry that continues to make more and more data based decisions the move to actually do so is still cutting edge for many banks. But for those banks who have chosen to make data based decisions, the extra efforts have paid off big and have done so without the need for reaching into data feeds from other organizations. For Cobban, this approach doesn’t mean going at it alone. In his article, Cobban emphasizes the need to work with trusted partners but resist the temptation to grab mass quantities of data from the start in order to avoid an embarrassment of riches.
Through these extra efforts, you don’t only know the data, you know exactly how it was collected, who the respondents were, what the caveats the data had and what wasn’t collected. Most importantly, you know that the data is as relevant as it can be because it is something you collected yourself. While the temptation to take open data is high, remember that using data that doesn't quite fit and trying to make it say something that actually is not backed by evidence is not aligned with best practices.
Data only shows you the world as it is. It can’t tell you the future even if it can make things easier to predict. Scott Anthony writing for the Harvard Business Review says that one good experiment can be the answer to all of the questions that historical data is unable to answer.
2. Use the Best Tools
So by now, I have hopefully convinced you to explore your own data a little more deeply. So what's next?
Your next step is to get your database ready and in ship shape. Wait... a database? If that’s what you’re asking yourself right now it's likely because you have all your data stored on a Microsoft Excel spreadsheet. Just kidding. If you're reading a big data blog, you probably already have your data in a modern database.
So with your data correctly stored and ready to be used it is now time to perform database analysis. Database Analysis is the process of simply going through and making sure your data works within your database.
Once you have identified that the data in the database is working correctly, then you’re ready for deep analysis! Of course now you need to determine what analysis you would like to perform on your data. I would recommend starting with exploratory data analysis where you can configure the data in different ways and see what happens. But now is also a great time to practice, deliberate, strategic thinking.
3. Slow Down and Think
Strategic thinking is the act of deliberately thinking about your company's success, both in the short and long term.
Success comes in many different aspects. Obviously success is the ultimate goal and while sometimes this comes through luck, strategic thinking is frequently at the core of success. A key to strategic thinking is investing time. The fatal flaw to success in many cases is that people often don’t stop to take time to simply think about their work.
Many of us are so busy that taking even 15 minutes to consider a decision is unfeasible but time and time again, studies show that executives who carve out time to turn off the phone, shut off the computer and simply think about the direction of their business find themselves more productive at the end of the day. Freek Vermeulen, a writer for Forbes explains more on the benefits of taking time to just sit and think each day in his article. Utilizing these tips for healthy decision making could pay off big for your future.
Lastly, your data plays a large role in your strategic thinking. Again, don’t try to make your data do anything except show you things as they are by keeping your data specific and avoiding masses of data. Use these suggestions to guide your strategic thinking and remember the words of William Edwards Deming who said “In God we trust. All others must bring data.”
4. Don’t Ignore what the Data Says
You don’t want to be so off in your assumptions that your data always forces you to change tactics or reverse opinions. Changing your tactics and reversing your opinions can be seen as not trusting your data and ultimately set you back from being able to think strategically.
Instead, use your data as a guide to know when to listen to your gut and when to accept a result that is different from what you expected. The urge to ignore data in favor of preconceived notions is a powerful temptation but any success from doing that has more to do with luck than skill. Remember, a wrong hypothesis can be just as valuable for your planning as getting a prediction right.
Feel free to experiment with your data. It's alright for your data to not support your hypothesis, there is still stuff to learn from non-supported hypotheses. Following the evidence, wherever it leads is a crucial part of critical thinking and essential when using the power of your data to make decisions and always remember, data ignored is just as dangerous as data that’s never collected!
That’s it. Four simple steps to get you on the right track with your data. If you’ve had success by looking at your own data with fresh eyes, comment below and let us know about it!
