It is a huge advantage to be able to compete on many different parameters. But that requires your business to be able to handle and use data complexity constructively.

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Data is a cornerstone of modern life. It not only determines the future of tech companies like Google, Meta or Apple, but is increasingly the foundation for the development of all businesses.

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Data is good, data is healthy - as a strategy advisor, I'm all for data (to paraphrase Søren Brostrøm of the Danish Health Authority). But only if data is used right - to make us smarter.

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If, on the other hand, data is mostly used to confirm your own gut feelings or needs, it can become your worst strategic enemy.

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The eyes that see

This summer, I came across two studies that underscored that challenge. The two studies gave very different pictures of Denmark at the same time.

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One was this year's "Global Gender Gap Report" from the World Economic Forum, which showed that Denmark ranks a dismal 32nd in the world when it comes to closing the gender gap - behind countries like Burundi, Barbados, the Philippines, Namibia and Rwanda.

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The second study came two days later from the International Institute for Management Development (IMD). It showed that Denmark is the most competitive country in the world - ahead of countries like the US and Singapore.

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If I had asked my neighbour, based on the two reports, "Are things going well in Denmark? The answer would depend on how much my neighbour cares about equality or competitiveness.

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ALSO READ: Hello top boss: Give the middle manager a fair chance

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How much can we accommodate?

Yes, yes - you say now: We can hold more than one thing at a time, can't we?

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Yes. Of course. The reality is that when we as people or organisations have to deal with much of the global, national or local data that is available today, we risk focusing on the issues that we most want to - and not the issues that we really should be acting on.

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ALSO READ: Remember the employees you have - before chasing new ones

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Fear of complexity leads to bad strategies

Selective vision may work if you are a politician. But for a business leader, the wrong focus can be fatal.

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Because if you avoid the complexity, you miss the reality. And if you miss the reality, you lose a lot of new revenue opportunities at best. At worst, you risk heading for a dead end or putting the life of your business at risk.

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The solution is as easy to formulate as it is difficult to execute: Use your strategy to make the complex simpler.

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Instead of fearing complexity and ignoring the data you don't know what to do with - get it collected, systematised and incorporated as part of the backdrop to your strategy. This allows you to make informed choices - and often even the ability to see new opportunities.

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Particularly important for Danish companies

Embracing data complexity is particularly important for many Danish companies.

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One of the reasons why we are among the most competitive countries in the world is that our companies are not only competitive on price, but also on, for example, design, service, knowledge, synergies, technology and sustainability.

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It is a huge advantage to be able to compete on many different parameters. But that requires your business to manage and use data complexity constructively.

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This column was published on Jyllands-Posten Finance and in Jyllands-Posten, Erhverv on 27 September 2022.

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