Data Blogs

In the world of business, Competitive Advantage is the difference between ‘simply existing’ and ‘leading the pack’. Businesses such as Coke, Gillette, Disney, McDonald’s, and Nike have used branding as their competitive advantage, to earn customer loyalty. On other hand, businesses such as Wal-Mart and Costco became market leader using ‘low price’ as their competitive advantage or moat to lead the pack. Regardless of the moat strategy, having a competitive advantage is a must for a successful business.

As the past CEO of GE, Jack Welsh, once said, “In business if you don’t have a competitive advantage, then don’t compete.” However, at the turn of the century a new group of business emerged: Amazon, Netflix, Capital One, Tesla, Google, etc. Even though they all exist in different business sectors, they are all connected by one single strategy: these companies use ‘Data’ as competitive advantage to lead the pack. They are known as ‘Data-driven’ companies.


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Data Driven Business

To understand ‘Data-driven’ companies, it might be beneficial to define data. In business, we take actions all the time. For example, we develop goods and products, we manage employees, suppliers, vendors and take care of our stake holders and customers. All these actions require us to communicate knowledge or information. At a granular level if information can be stored, processed, and retrieved electronically it can be labeled as ‘data’.

Data is the digital twin of information that exist in our physical world. Just like how invention of writing around 3200 BC in Ancient Egypt converted oral information into written documented events, and Gutenberg’s printing press in 1440 AD expedited transfer of written information, similarly, digitization of business knowledge helped us gain better insight of our business with application of data.

As of 2022, all companies use some level of digitized information or data. However, Data-driven companies such as Amazon or Google, has taken it to the next level. They have placed infrastructure in place to capture as much information as possible and convert them into data to extract business values and drive performance.


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Business Performance


Business Performance Management is the art of executing Business Strategy. The business strategy is driven by how the company combines its understanding of the Market segmentation or customer’s need assessment, competitors, economic changes, technological changes, political condition, and social changes. Business Performance Management is a balancing act of understanding the trend of external factors, shared above, and knowing the capacity or limitation of internal factors, make necessary changes to work effectively, stay competitive in the market and maximize shareholders equity.

Balanced scorecard or strategic dashboard track progress towards achieving these strategic objectives in a top-down fashion. The scope of Balanced scorecard is at Enterprise level and is primarily used by high-level executives. The purpose of Balanced scorecard is not to only display objectives and measures but to drive an organization in a new direction, changing fundamental behaviors and process along the way.



Data Analytics


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