What is the value of data to your business?

Today, data has become a key asset in many business models. But what is our position on handling our data and what value does it have for private individuals and companies? This article will answer these questions.

Data as the raw material of the digital world

More and more companies, especially those that are going down the path of digitization and digital transformation, are finding that they are generating more and more data. Managing them and, ideally, even using them is not an easy task. On the one hand, IT is the prerequisite for fast, effective processes and innovations. On the other hand, bloated, complex IT can also do the opposite. It also applies to big data: some companies generate, store and manage large amounts of data without deriving much benefit from it. The digital transformation processes are the driving forces that stimulate change in the business environment, based on the introduction of new technologies such as big data analysis, the Internet of Things, and cloud technology. Thus, there is a transition from the classic “product” organization to technological, using new management models based on the development of digital strategy.

Why is data so valuable for business?

Every company has data, even if it cannot do entirely without paper as a data carrier. By analyzing customer data, receipts, invoices, and e-mails, valuable insights into purchasing behavior can be gained and related to promotions, the weather, or special prices. New data sources are also comparatively easy to access: many customer and bonus programs are used, for example, to obtain more data and information for analysis. This data provides information about customer behavior. All this is also possible with small amounts of data. The advantage of big data is that it gives a more complete and complex picture when more information is available. Patterns can be identified in large amounts of data, which leads to knowledge beyond the mere content of the database. All marketing strategies are somehow based on the manipulation of information and the analysis of existing data. That is why the use of big data can predict and make it possible to adjust the company’s further development.

Big data are enormous amounts of data that flood large, medium-sized, and small companies daily. This data enables small businesses to gain a comprehensive insight into their customers’ tastes, habits and shopping preferences. With this information, modern companies can see how to tailor their products and services to give customers exactly what they want, thereby increasing sales. The following goals can be achieved through the correct use of the data:

    • acquisition of new customers;
    • increase in customer loyalty;
    • social media interaction tracking;
    • improving customer service;
    • better control of marketing measures;
    • prediction of sales trends.

Why is data governance important?

Many companies are still struggling with the idea of introducing data governance and are wondering what added value data governance has? If you want to remain competitive in digitization, you cannot avoid a data strategy and the introduction of data governance. At least that’s what you read all the time in the trade press and hear from many consultants all the time. On the other hand, it is justified in this context to ask the economic question of what added value does data governance bring to the organization and how much am I willing to invest or what will my ROI (Return On Invest) look like. In addition, the IT market offers many helpful digital solutions and software to store and manage business-critical information.