Data analytics, business intelligence, market intelligence, are are buzzwords that have not truly taken root in Caribbean organisations. Here are five reasons why.
Although we all know that we are living in the digital age, where information and data are increasingly critical to our daily lives, to a considerable degree and this day and age, Caribbean businesses are still making important decisions based on primarily anecdotal evidence and instinct. While instinct, and even luck, do have their place, among Caribbean organisations, there almost appears to be an aversion to conducting thorough and defensible analysis in order to be in a position to draw cogent and logical conclusions. Here we discuss five reasons for that posture in organisations.
1. They are satisfied using proxy data only
Too often, when a business has a problem that it is seeking a solution, research is conducted online, which may become the sole basis for decision or recommendation made. While online research is useful, as it can point to what obtains in other organisations, industries, or even countries, at best, but it would be ill-advised to completely of the information provide.
Most Caribbean countries are Small Island Developing States. Hence, in addition to their small population sizes and challenging economies, there are a broad range of vulnerabilities, some of which are unique to each country in the region that must be considered, but are unlikely to be readily reflected in data from other countries.
2. Generating data requires resources and planning
If they think about it, most organisation could come up with a wishlist of data to which they would like access. Though some of it would be environmental and market-related, it is likely to also include data points that the organisation itself could generate. However, many people fail to appreciate that – for all intents and purposes – data does not magical appear. Systems must be established to capture it, which require planning and resources, which may not necessarily be limited to money, but also include manpower.
3. Good analysis requires skill
Having captured the data in order to derive useful information from it, it must be processed. In some instances, and for a limited pool of data, a simple tally could suffice to begun to extract useful information. However, for larger volumes, different tools or software applications might be needed to process the data. Further, depending on the depth of analysis required the services of a data analytics expert or statistician may also be needed to help in interpreting and validating the results that have been produced. However, many organisations are not prepared to secure that type of expertise, even on a part-time basis, to support their business or market intelligence efforts.
4. Getting truly reliable results requires time and effort
In addition to the inferences that can be made relating to a particular point in time, more compelling information can be gleaned when patterns are established. Patterns – or trends – tend only to emerge over time, which thus means that a comprehensive data collection process must be put in place, which administered at regular periods in order to be in a position to eventually generate authoritative results.
- They are okay with the risk resulting from sketchy decisions
A various points in an organisation’s life, important strategic or business decisions must be made. Ideally, data would inform such decisions. However, when the data is sketchy, and one is trying to use information from other organisations, sectors or countries, to proxy that which is absent, considerable uncertainty can be introduced.
How do these situations affect the decision-making process? Organisation may be inclined to make more conservative decisions than they should, to try to mitigate some of the risk that inevitably exists.
Image credit: NEC Corporation of America (flickr)
___________
