With the growth of Digital Transformation and technologies increasingly taking a central role in organizations, you should already have in mind that data is one of the most valuable resources nowadays. But what you may not know is that data and technologies can also be very useful in crisis management.
Crisis situations are concerning for managers. After all, they can generate unwanted repercussions to the business, especially in the case of companies that already went through Digital Transformation. In this context, knowing how to interpret the data generated by customers and prospects is fundamental to have a strategic plan ready that helps overcome any instability.
In this post, you are going to learn how to use data prudently and cautiously in crisis management. Keep reading!
How does technology help with crisis management?
The use of technological solutions in companies has the potential of leveraging any business. According to a study by BI-Survey, 60% of high-performance organizations in the world base their decisions on data, using different tools to collect and analyze information about their customers, competitors, and operation market.
This high percentage demonstrates the importance of creating a data-driven culture capable of achieving benefits, such as:
- Increase in agility – To identify opportunities or risks is a lot easier through data tracking. It allows you to notice market movements providing more agility to react.
- Cost-minimization – During a crisis every action must be well planned. When making decisions based on data, operating expenses tend to fall and there is a reduction of bad investments.
- Error detection – More than managing a crisis, you need to understand where the error is. Identifying a problem and planning the possible solution generates improvements in the process or project.
- Prevention of new crisis – By using predictive analysis it is possible to foresee situations that may occur in the market.
- Greater efficiency – The use of data allows for a better understanding of customer needs and improves the experience.
In this sense, technology is a fundamental part of a data-based strategy. After all, by using it you can collect large volumes of information that will be analyzed to generate the necessary knowledge and serve as a subsidy for decisions.
What are the necessary tools to improve crisis management?
Before we explain how to use the data itself, it is important to understand what resources are necessary to get to the information which is relevant. In order to do that, you basically need three solutions.
A database is essential to store large volumes of data that will be later processed in order to generate value. The size of the Data Warehouse varies according to the needs of each company.
The second tool needed is the famous BI, a software that uses Artificial Intelligence to analyze data. Here, analysis parameters should be defined and over time the system itself learns how to improve its analytical ability.
Finally, you need to rely on a Dashboard, that is, a visual display of all your data because it is very important to organize the information using graphics, reports, and visualization tools. This way, data can generate many more insights.
How to use data to get around a crisis?
The following is a step-by-step of how to use data in a crisis management strategy. You can implement this methodology in your company in a simple and agile way.
Define the strategy
The first and most important step is to define a strategy for using data. Identify your main objectives with the analysis, how to identify possible threats, the impacts they would cause to the organization, and the indicated measures to minimize the consequences.
That way, you focus your team’s efforts only on data that will be relevant to your objective, eliminating everything that will not add value now. This guarantees more effectiveness of your investment in data analysis.
Monitor consumer behavior
After defining a solid strategy it is time to monitor the behavior of your consumers and prospects, as well as the competition and operation market. Social media, third-party databases, and market research are good sources of behavior data.
Besides, it is also important to monitor the conversion rate by product or service, customer feedback, and even the usability of your website and projects. It is necessary to pay attention to the main resources that can generate solid and reliable data, as the company’s decisions will be made based on them.
There are two ways of collecting information: manual or automated. Small companies or companies in the early stages of analysis usually opt for the first option. However, over time and as the evolution of the analysis increases, the ideal option is to search for a tool that automates the data collection process.
Automation offers great possibilities for data collection and analysis. So, start using tools and technologies available in the market, such as Artificial Intelligence and Big Data wisely.
After implementing all the previous steps your strategy will begin to run, and the tools will efficiently collect and analyze data. However, it is up to you and the other managers to check the reports and use the experience and business vision to define which actions will be more efficient, based on the knowledge generated by the data.
Finally, these conclusions should be documented in your crisis management strategy. This will be important to act efficiently in future situations. In the future, having a “map” at hand that guides you through the best way to get your company out of a crisis without major losses will be fundamental.
Using data in crisis management can make a difference in the success of your business. In a time of high competitiveness, there is little room to bet only on your instincts. So, if you do not count on a data culture yet, you can start planning for one now.
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