Adopting a data-driven approach creates clarity and collaboration within the workplace, with everyone knowing what is necessary to reach the end goal. Combining multiple datasets can provide new insights, allowing fact-based decisions to be made in real time to adapt to potential opportunities and/or dangers.
Data has become the new oil in the digital landscape, with companies being bought and sold purely on the data they own/manage. Uber, Airbnb, Google and Facebook are examples of companies that are built around data. Trading data with those who can unlock its value is big business.
Data can grow revenue
Some companies have used data to create new streams of revenue. For example, in the aviation industry, companies that historically created just engines are now combining sensors with those engines to gather data on performance, thereby creating a new service where they monitor all engines and schedule services automatically. Other industries are also doing this, completely transforming the customer-service landscape.
Retail companies use data to entice further spending on products that are customer tailored – such as Amazon’s ‘recommended’ lists and supermarket loyalty cards.
A new industry has developed from activity data. People who wear activity trackers and sport monitoring devices are creating loads of valuable personal data which is then anonymised and sold to companies in other fields such as insurance.
Your business might be sitting on a gold mine of data that other businesses can benefit from!
Being able to focus on key areas to make the best impact is vital for any business. Mobile phone operators are using data to identify those customers who are likely to leave at the end of a contract. Focusing effort on those who are likely to leave rather than those who will rollover is key to retention.
In the rail industry, having a train off the track for any amount of time costs money, and in a business where profit margins are small, any loss of revenue can have a huge impact. Being able to monitor all aspects of a train and tweak elements such as brake pad usage to fix multiple problems in a controlled way becomes a massive benefit.
Companies that are data-centric know in real time if they are on course to meet their business targets – any deviation will be highlighted, and appropriate action can be taken quickly.
Create a competitive edge
A company can use data to identify patterns and trends – not just internally but also within the market space – keeping the business one step ahead of its competitors.
Going back to train operators, those who are data-centric can make more competitive franchise bids because they are more in control of their fleet than those who aren’t.
Data has helped Amazon to become one of the biggest companies in the world. Its ‘recommended’ lists, consumer product rating and efficiencies of its warehouses through data have left rivals in the dust.
Even credit card companies are creating a new competitive edge by making use of data on customer spending habits.
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Every company has its own unique data journey. Having the expertise to support this is vital to future success. Contact us now, and we’ll help you on your data journey.