People in business often say things like “trust your instincts” or “follow your gut feel.” This is all very well if you have decades of experience to fall back on. After all, instinct, or gut feel, is simply an accumulation of data, admittedly mixed in with a measure of human subjectivity. And this intuition is invaluable when we have to make decisions based on incomplete data such as hiring new people or entering a new business partnership. However, we live in a world where there is no shortage of data, and organisations that can harness it are effectively able to make far better decisions, more quickly, with a higher probability that those decisions will be correct.

A study by Accenture in 2018 found that 79% of executives believe companies that don’t embrace data will lose their competitive position and face decline. Furthermore, a study by McKinsey reported that companies that use it effectively have a 126% higher profit margin than organisations that don’t.

So, remind me. Why do I need a data analyst?
For those people that still question the value of data analysts, just look at some of the areas of your business that would be negatively impacted if you did not have people making sense of the numbers. Imagine if you didn’t know which of your products and services were profitable or loss-making. Imagine not being able to make informed decisions about future demand, leaving you with warehouses full of unsaleable goods and or not enough staff to handle a seasonal peak.

Think of the opportunities you would miss by not identifying a new market or market segment or identifying better ways to reach and influence your target customers. People searching for cars, for example, are far more likely to look for vehicle finance services but who are they and where are they? What makes them tick?  Your data will tell you the answer.

And shock horror; we live in a competitive world so, think about how you can use data to make your operations more productive. We are already seeing technologies like AI shaking up the banking sector where loans can be approved and agreed far more quickly and efficiently using AI as part of the Know Your Customer process where, in the past, it would have meant a visit to your genial local bank manager.

So, if you want to stand still and lose out to the competition and make expensive mistakes, based on a hunch, you just keep on asking: Why do I need a data analyst?”

Mind the resourcing gap
The benefits of data are clear to see. However, even if businesses collect vast amounts of information, it’s essentially worthless if they don’t have the right people or resources to extract the value from it. To get the full benefits, businesses need skilled individuals who can understand and interpret complex data. According to the UK’s National Data Strategy, “There is increasing evidence that the full value of data is not being realised because vital information isn’t getting to where it needs to be.” The report also links the lack of skilled data professionals to the cyber skills gap and suggests that industries need to develop their understanding of their own specific needs. The issue for businesses is finding skilled individuals who understand the value of data. According to the UK government’s Quantifying the UK Data Skills Gap report, there are between 178,000 and 234,000 data roles yet to be filled. So how do businesses address this problem?

Boardroom buy-in
The solution starts at the top. The C-suite needs to recognise the value of those people that provide the insights to help your business thrive. Step one: hold on to what you have got because they are going to be hard and expensive to find in the future. Next, make sure you are not a hostage to fortune and start recruiting and developing the next generation of data analysts. Finally look at the people you already have and look at ways to give them the high-level skills to meet the increasing demand. Upskilling takes some of the hit and miss out of resourcing, in that existing staff already have a stake in the game, a degree of loyalty, especially if you are investing in their development, and an understanding of your current business and all its idiosyncrasies.

Help is at hand
The UK government understands the seriousness of the problem and is supporting a range of initiatives such as modern apprenticeships which are also open to experienced employees, not just new starters. In many areas there are also fully funded digital bootcamps for shorter, more intensive courses. There is support out there and we won’t crack this overnight, but the sooner we start to upskill the digital workforce, the sooner we will harness the power of data to improve your business and tackle the entrenched productivity problem for UK plc.