What is Data-Driven Engineering? The Complete Guide

What is data-driven engineering? The complete guide

Data-driven engineering is the practice of using objective metrics and analytics to make engineering decisions, allocate resources, and measure performance instead of relying on gut feelings or incomplete data.

Why data-driven engineering matters

Traditionally, engineering teams operate with partial visibility, spreadsheets, and intuition. Data-driven engineering represents the transition to a different decision-making model, led by comprehensive, real-time insights across all engineering operations.

Key benefits to data-driven engineering:

• Faster, more confident decision-making
• Improved resource allocation
• Better predictability and planning accuracy
• Enhanced team motivation through visible impact

"The biggest benefit we see is that we no longer rely on gut feelings to set our action items. We now have a combined picture from all the tools we use." — Elad Kochavi, Engineering Manager, Riskified

The five pillars of data-driven engineering

Whether a scaling startup or a mega-enterprise, world-class engineering organizations operate on the foundation of five essential pillars: Budgets, Talent, Productivity, Delivery, and Outcomes. These pillars ensure that operations are efficient, strategic, and aligned with the company’s goals.

Each pillar is reinforced by specific recurring processes and cadences that facilitate sustained performance and growth. Data-driven engineering organizations ensure their meetings are fueled with high-quality, evergreen data and metrics, so decisions are made faster and more confidently.

What to measure for each engineering pillar

The table below summarizes the engineering metrics to measure and review for each of the five operating pillars of the modern engineering organization: Budgets, Talent, Productivity, Delivery, and Outcomes. 

"Metrics help map engineering's work to business value. The excellence with which our engineering teams deliver can be tied directly to helping the business acquire, retain, and increase customer satisfaction." — Shai Peretz, SVP Engineering, Riskified

For full explanations of the recurring cadences in each pillar, as well as all the recommended metrics to review in each, download the complete Engineering Productivity Handbook.

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How to transition to data driven engineering: 4-step framework

Engineering is a big and important function, supported by recurring cadences designed to facilitate organizational learning and growth and to ensure objectives are met. The transition to data-driven engineering has a very large element of change management. 

This four-step change-management checklist can help support the transition:  

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     Establish ownership and accountability for change
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     Assign an internal champion with authority to institute data-driven practices across teams.
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     Tailor visibility to support recurring cadences
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     Create customized data views for each recurring meeting and business process.
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     Make resource allocation and decision approvals contingent on supporting data
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     Use metrics as the foundation for how resources are distributed and priorities are set.
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     Ensure every team is accountable for its data and continuous improvement
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     Encourage every team to understand their metrics and maintain data accuracy.
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Why now is the time to embrace data driven engineering

Data-driven engineering marks a fundamental shift from reactive to proactive management, where decisions are grounded in evidence and tied directly to business outcomes. And with coding assistants and AI agents now becoming part of everyday engineering workflows, data has never been more important for proving their value and ROI. By instilling practices that weave data into the fabric of cadences like sprint planning, quarterly reviews, and talent evaluations, engineering leaders set their organizations up for impact-driven operations.

Ready to become a data-driven engineering organization? Reach out to us today.