Use data to run your Business

I pride myself to be a project manager specialising in continuous process improvement and strongly identify with what the writer says here on how using data can benefit your business. Whether in Australia or in the Philippines.

From StartupSmart.com

Thursday, 01 March 2012 

Becoming a metrics driven company

Becoming a metrics driven company doesn’t mean you subtract creativity. On the contrary, it means creativity gets implemented quickly, rather than being trapped in long-winded debates with higher-ups.

Too many people think of a metrics driven company being something like Google A/B, testing hundreds of versions of blue for their link colour and frustrated designers leaving the company because of it.

But being data-driven means the bursts of creativity that come from all around your company have a scoreboard to be judged upon in the real world. Being data driven means that things get implemented quickly because the ultimate judge is the impact on engagement, usage and revenue.

The interim step of endless meetings with silly planning documents that help freeze a company in a state of fear no longer happen.

By being data-driven it also opens up the possibility of simplicity being beautiful. On all products, companies pile on the features one after another because as time goes on a company thinks it needs to keep adding stuff.

But I have often found that taking features away that weren’t used ends up increasing the use of a service. Trying to reduce what you have into an even simpler value proposition drives huge positive changes in revenue.

Without having data as the scoreboard you end up going HIPPO (Highest Income Paid Person’s Opinion) and have no idea what is working or not.

Being data driven allows creativity to flourish and rewarded based upon what really matters: how happy it makes customers.

Niki Scevak is the founder of Homethinking, a real estate startup based in the US, andStartmate, a mentor-driven seed fund that invests in small startups at the earliest of stages. He is based in Sydney.

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