The debate between “data first” and “people first” has become central to digital transformation discussions. Both perspectives present strong arguments for why one is more essential than the other, but the reality is far more nuanced. As digital leaders strive to unlock value from transformation, the conversation transcends a simple binary choice. The true challenge lies in understanding the alignment, integration, and symbiotic relationship between data and people, two components that must work in tandem for successful transformation.
The Case for Data First
The argument for a data-first approach is compelling, especially in the context of technological advancements such as artificial intelligence (AI), machine learning, and advanced analytics. Proponents of the data-first model argue that structured, high-quality data is the backbone of any transformative initiative. In a world driven by rapid technological evolution, organizations are increasingly reliant on data to inform decisions, optimize operations, and drive innovation at scale. One of the key reasons for championing data as the foundation of transformation is its role in ensuring accuracy. Data accuracy ensures that leaders can trust the decisions made, minimizing risk and enhancing overall strategic alignment. Data is the key to eradicating inefficiencies and uncovering real-time insights that can direct critical decision-making processes.
When data is accurate, it provides a clear picture of the current state, allowing leaders to make well-informed decisions that align with business objectives and mitigate risks. Data-driven organizations use data not just for decision-making but as a strategic asset that informs every aspect of their operations. A truly data-driven organization integrates data across departments, breaking down silos and allowing for more cohesive, cross-functional insights. This data-centric approach not only ensures efficiency but also fosters innovation, as teams can identify new ways to optimize processes and drive value.
Furthermore, scalability hinges on data. As organizations evolve, they require data systems that are flexible, scalable, and reusable. This allows them to scale their operations without being hampered by fragmented or siloed data structures. Data-first advocates stress that consistent, high-quality data enables the scaling of both digital and organizational transformations. Gaining a competitive edge often comes down to the ability to derive insights from data faster and more accurately than competitors. It is not only about lifting and shifting data between systems or functions; it is about working with truly business-ready data, driving engagement through accessing the right data, at the right time, and reducing rework towards right-first-time quality data.
Having said that, while the data-first approach holds considerable merit, it overlooks a crucial aspect of digital transformation: human engagement.
The Case for People First
On the other hand, people-first advocates emphasize the essential role of human factors such as employee engagement, leadership alignment, and cultural readiness. The importance of people in the transformation process cannot be overstated—regardless of how sophisticated the technology, adoption and change management depend fundamentally on the people within the organization. Transformative change begins with human minds, not machines or algorithms. While technology may facilitate progress, the human element is indispensable in fostering a culture that embraces change.
Change is human-driven. Effective transformation requires a network of champions and advocates who can lead the charge, gain buy-in from the broader organization, and align everyone around a shared vision. Skills are another critical factor. Even the most powerful data and technology will be underutilized if there are not skilled individuals capable of interpreting and acting on the insights they provide. People-first advocates argue that investment in upskilling is a key enabler of transformation.
A skilled workforce is better equipped to apply technology, innovate, and ensure that data is leveraged effectively. Furthermore, organizational culture plays a pivotal role in completing/sustaining transformation. A culture that fosters trust, openness to change, and continuous learning ensures that digital transformation is not a one-off project, but a sustainable, long-term process. Without a supportive, agile culture, even the most cutting-edge technologies will remain underutilized or fail to deliver on their potential.
The False Dichotomy
The debate between “data first” and “people first” positions these two crucial components as opposing forces. However, this is a false dichotomy. The reality is that digital transformation thrives when both data and people are prioritized, integrated, and balanced. It is not about choosing between data or people, but rather understanding how they complement and enhance each other. Organizations that recognize the symbiotic relationship between data and people are those that succeed in creating sustainable change.
Leading organizations in digital transformation embrace both perspectives. Successful transformation initiatives focus on:
- Establishing data as an enabler, not an end in itself. Data is curated and managed to empower decision-making, drive innovation, and inspire action.
- Fostering a data-literate culture throughout the organization. Leaders invest in ensuring that employees, from frontline workers to executives, understand and value data, making it an integral part of daily decision-making.
- Prioritizing human-centric design. The technologies and systems implemented must be user-friendly, designed to enhance the user experience and improve the efficiency of teams, rather than complicating workflows and processes.
To reconcile the “data or people first” debate, organizations must adopt a cohesive strategy that aligns both data strategy and people strategy. Leaders must:
- Lead with purpose by articulating the transformation’s goals and how these objectives align with the organization’s overall strategy. This helps foster a sense of ownership and accountability across all teams.
- Invest in upskilling, ensuring that employees are equipped with the necessary skills and competencies to harness data and drive the transformation forward.
- Synchronize efforts to ensure that data strategies and human development strategies evolve together. This alignment strengthens both the technological infrastructure and the organizational culture, ensuring that one does not outpace the other.
An “Impact-First” Approach
Ultimately, digital transformation is neither a data-first nor a people-first initiative. It is an “impact-first” journey that centers on achieving the outcomes that matter most to the organization and its stakeholders. Organizations that succeed in delivering transformation understand that data provides the insights and structure needed for informed decisions—while people drive the vision, culture, and execution necessary for these insights to translate into meaningful change. By bridging the gap between data and people, organizations can navigate the complexities of digital transformation and unlock value that is both sustainable and scalable. Success lies not in isolating data from people but in understanding how the two elements must work in harmony to create lasting impact.
A critical aspect of this journey is the role of process-driven practices and system best practices, which serve as the backbone of any successful transformation. Process-driven approaches focus on standardization, efficiency, and continuous improvement, all of which rely heavily on data to provide consistency, measure success, and optimize performance. In this context, data serves as a means to refine processes, ensure that best practices are followed, and sustain operational excellence. Even the most efficient, data-driven processes require a committed and skilled workforce that is trained to adapt to new systems and engage with technology in ways that improve their work.
When it comes to linking process-driven and system best practices to the data versus people-first debate, the answer lies in creating synergies and cross-functional integration. Successful transformation is achieved when data-driven processes are paired with a people-centric approach that encourages engagement, learning, and adoption. This ensures that process optimization through data is not just about efficiency—it is about empowering people to work smarter, innovate faster, and ultimately achieve the desired outcomes.
So, when asked whether it is data or people first, the real question to ask is: How to empower both to achieve a combined/shared vision for the future?
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