With the emergence of the internet, social media, as well as digital tools and services, modern organisations are dealing with massive amounts of data. It’s no surprise that more and more companies are investing in strategies to harness their data and make it valuable to the business.
A report from the International Data Corporation (IDC) shows that the global big data and business analytics market has been expanding over the last few years and is projected to grow to $274.3 billion by 2022. Digital transformation has been a key driver of spending for big data and business analytics solutions.
In today's business landscape, there's no denying that data is becoming a key asset in any organisation. That's why many businesses are investing in data management, governance, protection, and analysis. Business leaders are also turning their attention to the areas of data compliance and risk management.
Data is the new oil
Most business leaders would say data is the new oil. And for good reason.
Data is not merely facts and statistics designed to populate a spreadsheet, rather it also contains deep insight into the organisation and its stakeholders. Data plays an important role in decision-making, problem-solving, and enhancing the customer experience.
When able to leverage information and translate it into actionable insights, companies can realise the business benefits of having a wealth of data at their fingertips. This can be in the form of finding new customers, creating well-targeted marketing efforts, improving customer retention, predicting sales trends, and many more. A Deloitte report says that data analytics is playing an increasingly bigger role in corporate decision-making, but more so in driving business strategy.
5 reasons why data is an important asset
Here are five reasons data is your organisation’s most vital asset:
1. Make better decisions
Business leaders are increasingly relying on data to help them make more informed decisions. As an example cited in a Harvard Business School article, PepsiCo created Pep Worx, a cloud-based data and analytics platform, to identify U.S. shoppers who are likely to be interested in a particular PepsiCo product or brand. The result? The company was able to narrow down their target audience for Quaker Overnight Oats and these customers drove 80% of the product’s sales growth in the first year of launching.
2. Improve processes
Companies are harnessing data to improve processes and become more cost-effective. That’s because data can provide insight into your current operations, which may not be immediately apparent. Did productivity increase as a result of a new measure you implemented? Which processes can be streamlined to cut lead times? Which business activities are driving the most revenue? By gathering data, you can find out which processes need to be improved and address the factors affecting them.
3. Identify and solve problems
Through data, business can adequately understand where the problems lie. In a less than stellar marketing campaign, for example, tracking and reviewing data can help you identify where the gaps are and allow you to adjust. Which channels are giving you the biggest ROI and which ones are incurring high costs? What type of content resonates better with audiences? Data-driven companies outpace their competition by a margin because they are able to get a clearer picture of the issues at hand and how to solve them.
4. Build better products and services
Data can help you get a better sense of the pulse of the market, pain points of customers, as well as what people like and don’t like about your product by collecting feedback. Not only that, businesses that leverage on recommendations to customers, such as the likes of Netflix, Spotify, Amazon, or other e-commerce sites, will greatly benefit from a treasure trove of data about the customers’ interests and preferences. Data allows companies to improve on their products or services by responding to what the customers want and need.
5. Create better customer experiences
Customer data relates to the interaction the business has with its customers. As such, a lot can be gleaned about the customer just by looking at the data and, in turn, enabling businesses to transform the customer experience. Is the data telling you that more of your customers prefer to shop online than in-store? Do they prefer to interact with the brand through chat or phone call? Are you seeing an increase in young customers buying your products? These kinds of information can help you tailor the customer experience and make it feel more personalised.
Protecting your company’s data is critical
With the amount of data that businesses possess today, the ability to manage, analyse, and interpret data becomes all the more crucial, especially as more businesses embark on digital transformation. When harnessed well, data has the potential to improve people’s lives and solve even the most difficult of challenges. Having a firm grasp on the reality of the situation through reliable, accurate data allows people to take decisive action and measure results accordingly.
Thus, an effective data system—using cloud computing, for example—is necessary for any organisation to thrive and remain competitive in a fast-paced business environment. There’s no room for second guessing here.
Data protection officers and compliance managers, likewise, have an important role to play in this dynamic digital landscape. Growing public awareness about data privacy and protection must be taken into consideration if businesses want to remain relevant and competitive.
Protecting key pieces of information, such as customer details, employee records, transaction data, should also be top-of-mind for any organisation. Bear in mind that data must not fall into the hands of third parties and be used for fraudulent activities. Phishing scams and identity theft are some common ways that data can be misused.
Learn how to protect your company’s data in the digital age with SMU Academy’s Advanced Certificate in Governance, Risk Management and Data Compliance. Discover how proper data governance can facilitate adherence to compliance requirements without slowing down the business. Find out more about the course here.
