The Data Driven methodology refers to the processes and operations that are oriented by the use of reliable data and analysis of important information, in which the decision making is based on strategic planning and data interpretation. It allows companies to improve their productivity and results and to keep updated on the market trends, offering a clearer picture of the customers, products, competitors and everything that is related to them.

When an organization becomes data driven, the collaborators have more autonomy and make use of reliable information to support decision making with less exposure to risks – as their prediction ability is improved. In addition, decisions made from data analysis are more well grounded and advanced than those made on the basis of experience or intuition, which provides rapid adaptability to changes.

To become data driven, it is important that the organization:

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• Choose the right data: Opportunities to expand insights by combining data are accelerating, it's important to know every customer touchpoint to understand the potential of external and new sources of data (P&L, social media, platforms, CRMs, etc.);
• Transform your company’s capabilities: It's willing to invest in training its employees to learn to interpret data, making sure that people have access to all the necessary information;
• Build models that predict and optimize business outcomes: Be ready to take advantage of the digital transformations to make necessary changes in the company’s culture;
• Here's a starting point: start with the basics, organize your database and identify an opportunity to solve a problem.

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The use of technology facilitates the implementation of the data driven mindset in companies. Therefore, hiring softwares such as CRM and data analysis programs (Google Analytics, Omniture, etc.) is one of the first steps to be taken.

Both belong to data science, but despite being close, they are different concepts. While data driven has its focus on quantity, based mainly on numbers and patterns and mainly related to the cultural transformation and company's data maturity, the analytics driven process is more complex as it has a qualitative approach, looking for what is behind the relationship between the data. 

Do you want to know more about this topic? Take a look at the McKinsey's Report The data-driven enterprise of 2025.