- February 25, 2022
Actionable insights are meaningful findings that result from analyzing data. They make it clear what actions need to be taken or how one should think about an issue. Organizations use actionable insights to make data-informed decisions.
Not all insights are actionable though. Actionable insights don’t come from having more information, or more data. To point out the obvious: insights, information, and data, are not created equal.
In short, data is raw and unprocessed information, in the form of numbers and text. Data can be both quantitative and qualitative and can be found in spreadsheets or computer databases.
Information, on the other hand, is data that has been organised and contextualized into a user-friendly format. This can be in the form of reports, dashboards, or visualizations.
Insights, however, are created by analyzing information, then drawing conclusions, and making decisions from it.
Actionable insights matter because you can use them to make strategic, well thought-out decisions. These decisions can drive positive outcomes specific to your business. This is because you derive the insight straight from your data such as your sales data or your customers’ feedback.
If your organization is truly data-driven (“data first”), actionable insights are the key to improve your product and operational processes. All executive decisions should be based on data.
Progressive companies today say they want to be data-driven. Forrester reports that 74% of companies say this is a goal. Although only 29% of these companies are actually successful in actioning their analytics. It’s clear that the missing link for companies wanting to drive business outcomes from their data is actionable insights.