Data-driven sales organization : digital transformation enabling long-term competitive advantage

Abstract

This thesis examines the concept of data-driven organization and the potential to generate long term competitive advantage through digital transformation. The research aims to determine how the sales organization under investigation can become more data-driven and deliver better business results by investing in the development of the internal resources. The theoretical framework of the thesis discusses the key definitions of digital transformation, competitive advantage, digital maturity, and data-driven organizations. The research questions aim to determine how the principles of a data-driven organization are currently realized in the sales organization and how internal resources should be developed to enhance the company's competitive advantage. The thesis examines the topic from a managerial and strategic perspective, excluding detailed data and tool-related discussions. Two-step, mixed methods research process was carried out through an online survey conducted within the global sales organization, reaching 33 respondents. In addition, six semi-structured interviews were conducted within the Finnish sales organization, involving various positions. The internal resources under investigation include organizational data culture, data strategy and leadership, data and tools, data literacy, and data-driven decision-making. The potential to generate long-term competitive advantage through the organization´s internal resources is evaluated and discussed using Jay Barney's VRIO framework. Theory and prior research show that data driven organizations can be more competitive and have the potential to generate better business results by applying a data-driven approach. According to prior research, the relationship between competitiveness and a data-driven organization is undeniable. The results of this research indicate that the principles of a data-driven organization are not fully realized in the global sales organization. Despite recent developments, the organization has many crucial development areas to address in order to become more data-driven. By creating business specific development strategy, investing in long-term tool development, re-evaluating current data policy, governance and data sharing practices the organization could be able to enhance its data-driven approach and competitive advantage. Strategy, tools and data can be considered as fundamental enablers of a data-driven approach. Additionally, strong data-leadership, up-skilling sales professionals, and building routines to use data play key roles in further development to become more data-driven. Altogether, this research provides a comprehensive overview of the main principles of a data-driven organization, offering managerial implications and insights to support the development of a more data-driven and competitive sales organization.