Startups can utilise data to grow and improve the performance of their business but can be late adopters, primarily due to lacking data experience. Some invest in data and analytics technology but have yet to realise the payoff, while others are still wrestling with how to take the initial steps. At Seven Startup Advisory we help startups or digital native companies, build for data and analytics–based disruption from their inception.
Embed Analytics in Strategic Vision
Startups are increasingly incorporating data and analytics into their core strategic vision. Starting a tech company, building a good product, and gaining traction have become easier thanks to improved connectivity, declining cloud storage and computing costs, and the accessibility of distribution platforms for reaching target audiences. Therefore Startups hold a distinct advantage over established businesses in using data to discover, predict, visualise, collaborate, model, and manage data – all in one place and with common logic.
Develop the Right Data and Analytics Infrastructure
Develop the right business processes and capabilities, including both data infrastructure and talent. For Startups it’s easier to design new IT systems and business processes from scratch as they do not have legacy systems to modify or overhaul. However, it is not enough to simply layer powerful technology systems on top of business operations. Many aspects of transformation need to come together to realise the full potential of data and analytics.
Building a Unicorn
The time it takes a product to reach 100 million monthly active users has shortened dramatically and continues to shrink today. For example, it took about 100 months for iTunes to reach 100 million monthly active users in 2003 and mere days for Pokemon Go to do the same. Every startup or business innovator thinks they’ve got a good idea, however, only through extensive market research can one gauge whether the consumer demand is there to make the whole project worthwhile. Startups must invest in understanding their markets, products, and customers, and data analytics, dissecting engagement metrics and feedback from users – utilising free tools like Google Analytics.
Data Explosion and Looking Forward
Much of this newly available data is in the form of clicks, images, text, or signals of various sorts, which is very different than the structured data that can be cleanly placed in rows and columns. Additional storage technologies, including non-relational databases, have allowed businesses to collect this rich content. A great deal of the potential it holds is still unrealised. New tools and applications for data and analytics could eventually transform even traditional industries that once seemed far removed from the digital world. In the years ahead, digital innovation will significantly alter business models. These changes will shift responsibility, expertise, and risk in their industry, thereby shifting margins as well.
At Seven Startup Advisory, our data and analytics experience helps startups and innovators envision the opportunities of a Data-driven solution and supports their missions of developing end-to-end solutions that pair best-in-class data science and emerging technologies.