The “People” Dimension The Core of a Successful Data Driven Business Transformation
In the second part of our series on the four dimensions of a successful data driven business transformation, we focus on the most important factor behind any change initiative: people. In this series, we show how companies can evolve into organizations where data is not only collected, but recognized as a real asset and used effectively to create value. In the first article, you were introduced to the four key dimensions that can be used to assess a company’s current state and plan its transformation: People, Process, Technology, and Data. In this part, we now turn our attention to the People dimension – the individuals and the organizational structures that form the foundation of every data driven company.
Example from practice: When Good Data Projects Fail
Imagine this scenario. Your data science department has developed a powerful AI solution that helps your sales team identify the best contacts and the optimal timing for reaching out to customers. The development was expensive, but the expected increase in revenue is supposed to quickly justify the investment.
When you present the new AI solution to the sales team, the reactions are hesitant. Typical responses include “This does not fit into my schedule right now” or “I already have my own method.” The tool is barely used, the project gradually fades away, and the anticipated revenue growth never materializes. Instead, frustration and mistrust toward the data science department remain.
What went wrong? The issue was not the technology or the data quality, but the human factor. The future users were involved too late, concerns and reservations were not addressed, and the value of the data product was not communicated clearly.
The “People” Dimension: More Than Employees and Management
The People dimension describes the human element of an organization, meaning everyone involved in or affected by a company’s work. This includes management, employees, customers, and other stakeholders.
It covers topics such as:
- attracting and retaining talented professionals,
- developing data literacy,
- building an open and learning oriented company culture,
- understanding customer needs and integrating them into data driven solutions.
In short, data projects are only successful when people understand them, trust them, and actively use them.
“Data culture eats data strategy for breakfast.”
– Dr. Leonie Petry, Consultant Data Culture and Transformation
Our colleague Leonie Petry puts it clearly. Without a lived and embedded data culture, even the best data strategy will fail. A strong data culture means that data is recognized as a valuable asset, understood, and used at all levels of the organization, from the executive board to individual departments.
Leadership and Culture Data Competence Starts at the Top
The well known saying “A fish rots from the head down” also applies to data driven organizations. If management does not lead by example when it comes to data, there will be no clear direction.
Leaders must define data priorities, establish a data strategy aligned with the overall business strategy, and ensure that the necessary resources, training programs, and structures are in place. This may include training initiatives, centers of excellence, or data communities where knowledge is shared and data literacy is actively promoted.
Bottom Up Instead of Top Down Creating Value with Data in the Business Units
Successful data driven organizations do not rely solely on top down frameworks. They also encourage bottom up innovation. Data products should be developed where they are actually used, within the business units. This ensures maximum relevance and acceptance.
This requires knowledge and competence at all levels. Not everyone needs to become a data scientist, but a basic understanding of how to work with data is essential.
In practice, interdisciplinary teams and product owners from the business units have proven effective. This ensures that data and analytics are closely connected to real business processes. After all, value creation with data does not happen in an IT system. It happens in the decisions you make based on that data.
Takeaways People as the Heart of the Transformation
The “People” dimension is complex and precisely for that reason crucial. People are the true drivers of a data driven business transformation. They shape, interpret, and use data to create value.
Without the right culture, communication, and leadership, no technology and no strategy can deliver impact. A data driven company only emerges when everyone involved, from management to analysts to end users, understands and embraces the potential of data.
Conclusion
A data driven business transformation is not purely a technological initiative. It is a cultural change. The People dimension lays the foundation for everything that follows, including processes, technology, and data management.
In the next part of this series, we will focus on the “Process” dimension and explore how data driven ways of working and methodologies pave the way toward an agile and future ready organization.
If you would like to learn more about how to build a sustainable data culture in your company, feel free to contact us or download our Data First Aid Kit.