Why Data Team Business Literacy Matters

As an organization implements data-driven decision-making, it becomes exceedingly important that data teams understand the business context of the data collected, analyzed, and presented.

The data team must understand how the business works, because then they’ll have context for what their data actually means and represents, and that context transforms the data into business knowledge. Additionally, when your data experts understand the business, and how the data is used to make decisions catapult operations in different departments, they’ll better understand the value your data provides and the value add of the data warehouse.

A further important step would be learning what systems are used to support each facet of the business process: When does data go into a customer relationship management (CRM) system, and where does it come from? How is that data moved into an order and payment system? Do sales and customer service use the same system to manage leads and customers? Learning the answers to these types of questions and gaining knowledge of the business process is the key to truly understanding the flow of data within an organization.

A capable data leader will explore every aspect of business operations to understand how the income generation works, and provide critical insight to the intersection of data and operations. This augments delivery of value and impact to crucial steps in the businesses operation, instead of data analysis in a vacuum.