The importance of data is not a new concept. It first emerged from ancient Sumerians, who kept detailed records of harvests and taxes on clay tablets over 5,000 years ago.

Today, data supply and subsequent roles have become exponentially more significant, driven by technological advancements, such as smartphones, more powerful computers, the Internet of Things (IoT), machine learning, and cloud computing.

Data generated between 1990 and 2023 has increased by 14,6 million percent, reaching 120 Zettabytes in 2023 from a mere 0.001 in 1990. To put the size of one Zettabyte into perspective, it is the equivalent of 1 trillion gigabytes or 500 billion HD films.

When wrapping our heads around this explosive growth, it is critical to note that 90% of the world’s data was generated in the last two years alone.

Sources: Big Data: What It Is and Why You Should Care White Paper 2011 | Bernard Marr & Co. 2023 | World Economic Forum New Paradigm for Business of Data 2020 | Step Analysis

Data plays a vital role in shaping business strategy by validating qualitative insights and providing solid evidence to support decision-making.

Below, we explore how data drives strategy in modern businesses, drawing on insights from various sources and practical examples.

The vast amounts of data have led to what is known as big data – data sets too large or complex for traditional processing tools to handle. The three Vs characterise these datasets:

• Volume: The sheer amount of data.
• Variety: The diversity of data sources, types, and formats.
• Velocity: The speed at which data is generated and processed.

For instance, during a Formula 1 race, a single car collects about 3TB of data. This data (classified as big data) must be analysed to identify trends and correlations and inform micro improvements that will win races.

Analysing such data involves querying these vast datasets to make evidence-based decisions, such as optimising pit stops for efficiency. This ultimately leads to better performance and strategic advantages.

But how can data analytics be used for strategy?

At Step, we typically gather qualitative insights through executive interviews, identifying both positive and negative influencing factors that will move the business forward or hold it back. We also conduct data-driven business analytics to gather quantitative insights that inform qualitative findings.

While qualitative research offers depth and context and uncovers nuanced perspectives, data adds objectivity and reliability by quantifying these insights. This combination ensures that strategic initiatives are rooted in both human experience and empirical evidence.

Integrating both types of insights enables businesses to avoid blind spots, validating anecdotal input against measurable trends and surfacing hidden patterns that might otherwise be overlooked.

This synergy between qualitative context and quantitative validation leads to strategies that are not only data-informed but also grounded in the real-world perspectives of stakeholders.

Data analytics is a great way to tell a clear and impactful story. Since people remember 65% of what they see in visuals, charts and graphs help show important insights, trends, opportunities, and challenges simply and effectively.

Data informs and engages the client, helping them see the bigger picture and understand the strategic implications of their decisions. By weaving data into a narrative, one can highlight key findings, support your recommendations with evidence and show the direct impact on the client’s business goals.

The power of data storytelling lies in its ability to create alignment, translating raw figures into a narrative that resonates across functions, from finance to operations to leadership. A well-crafted data story fosters shared understanding, builds trust, and accelerates decision-making by clearly linking numbers to business outcomes.

Dashboards

A dashboard is a powerful way to tell a story with data by combining key information into a single, visual, and interactive tool. Dashboards are designed to present critical data in a simple, easy-to-understand format, allowing busy executives to capture and assess important insights quickly.

Interactive dashboards allow users to filter or drill down into the data, adjusting the displayed information to highlight specific details. This feature helps users explore the data further, answering specific questions or testing hypotheses by focusing on the most relevant variables.

The dashboard below is a good example of how multiple data points and scenarios can be presented in one simple window:

This dashboard may require countless slides in a PowerPoint presentation if one wishes to see multiple viewpoints. However, as we have seen, data can tell a complex story on a single, interactive dashboard, enabling leaders to focus on what truly matters without being overwhelmed by excessive information. Leadership can drill down into the data, explore different scenarios and make informed decisions in real-time.

This approach saves time and ensures that the story being told is focused, relevant and directly aligned with the client’s strategic needs.

Data is the ‘new oil’, a valuable resource, especially when it comes down to uncovering valuable insights to drive strategy. The more data an organisation can get their hands on, the more insights it can create and, thus, the more value can be unlocked.

Some salient statistics indicate the power of a data-driven strategy within organisations:

• 9% of organisations achieved measurable value from data and analytics investments.
• 3 in 5 organisations are using data analytics to drive business innovation.
• Highly data-driven organisations are three times more likely to report significant improvements in decision-making compared to those who rely less on data.

The rise of data’s role in business decision-making has created new jobs, with up to 1,4 million new jobs expected in data science and analytics between 2023 and 2027.

Furthermore, the Chief Data Officer (CDO) position has become increasingly more common. In 2012, only 12% of Fortune 1000 organisations had a CDO. By 2022, this number had risen to 73.7%, and today, 82.6% of Fortune 1000 companies have appointed a CDO.

Fostering collaboration is essential for productivity and innovation at Microsoft. In 2015, the company relocated its engineering group to enhance face-to-face interactions, aiming to boost employee performance and save costs.

Hypothesis

Microsoft’s Workplace Analytics team hypothesised that reducing the number of office buildings from five to four would increase employee interaction by bringing more staff closer together. An earlier study suggested that proximity enhances collaboration.

Methodology

The team analysed metadata from employee calendars to measure the impact of the move. They focused on changes in meeting travel time, frequency of meetings, and meeting duration.

Findings

• Meeting Travel Time: The relocation resulted in a 46% decrease in travel time for meetings, saving 100 hours per week across the relocated staff and an estimated US$520,000 annually in employee time.
• Meeting Frequency: Weekly meetings per person increased from 14 to 18.
• Meeting Duration: Average meeting length slightly decreased from 0.85 hours to 0.77 hours.

Outcome

The analysis demonstrated that thoughtful workspace planning can significantly improve collaboration and operational efficiency. These insights underscore the importance of in-person interactions and strategic office layouts in enhancing productivity and reducing costs at Microsoft.

The ability to integrate data effectively into business strategy is essential. By leveraging both qualitative and quantitative insights, organisations not only gain a clearer understanding of their environment but also position themselves to drive innovation and achieve long-term success. Those who embrace the power of data will be the ones best prepared to navigate change and secure sustained competitive advantage.

Let us analyse your data and unlock value throughout your business model.