According to this Harvard Business Review article, leveraging big data positions a company to make big revenue gains and achieve higher customer satisfaction. The HBR article noted five management challenges for those companies pursuing a data-driven decision making culture:
Simply having more data, better data does not necessarily make a company successful. Rather, companies that have leaders who know how to ask the right questions, set clear business objectives, have a clear vision, and facilitate a corporate culture that embraces data-driven decision making will thrive.
Data scientist are an important team asset, but so are designers skilled at data visualization. Most importantly, data scientists and data artists must be comfortable “speaking the language of business and helping leaders reformulate their challenges in ways that big data can tackle.”
Firms will have to embrace open source software as a core component of their tech infrastructure and strategy.
Cross-functional cooperation is key to success. Team members that know how to collaborate is important as well as team members who have requisite problem solving techniques.
A data-driven company does not ask “What do we think?” Rather, it asks “What do we know?”
Are modern real estate brokerages in the data business and just happen to be selling real estate? This question is similar to how Zappos describes itself as being in the customer service business and just happens to sell shoes (and, now, many other types of products). Obviously, as a core element of long-term success, brokerages must deploy traditional means to empower a more delightful and meaningful home buying and selling experience for both its clients and agents. But when looking ahead will the most successful brokerages thrive when their systems and support infrastructure becomes more data-driven in addition to their leadership team becoming more data minded? I think the answer is yes.
Photo credit: Sebastian Sikora