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How to Activate the Value Flywheel Effect with Your Data
In today’s hyper-competitive world, businesses no longer rely solely on gut decisions or intuition; they depend on data-driven insights to stay agile and make fast, smart decisions. However, data alone isn’t the answer; it’s the enabler to create momentum on a business & technology flywheel: a model where data drives decisions, decisions drive actions, and those actions drive value, propelling the business forward in a self-reinforcing cycle. In a previous post, I used a model to explain how data could cross the borders of applications and domains to bring increasing value at the organizational level.
The most well-known application of the flywheel effect comes from Amazon, where small wins in customer satisfaction lead to more traffic, which attracts third-party sellers, which in turn results in lower costs and prices, creating further momentum. Goal: Understand what gaps exist in the current tech stack, ensure the right foundations are in place (e.g., event-driven architecture, data lakes), and decide on in-house development vs. commodity services. These wins should be closely aligned with business objectives, such as improving sales forecasting to give a competitive edge in logistics or developing data-driven insights to support key strategic initiatives.
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