Understanding Challenges and Success Factors in Creating a Data-Driven Culture

Abstract

Increasingly, organizations aspire to practices of data-driven decision making. The necessary transformation to a data-driven culture poses challenges, and this paper explores these as well as success factors. The study is based on six in-depth case studies of organizations that are in different phases of their transformation towards a data-driven organization. Propositions derived from change management and digital transformation literature guide our exploration. Our findings show how challenges and responses differ across the various stages of the transformation. Challenges include resistance to new technology; rigid organizational structures; and too little focus on usable analyses. Success factors include clear communication and leading by example by top-management; showing relevant and clear results of the transformation; and openness to experimentation. A discussion of implications and future research directions rounds off the paper.