We in the 21st century are in the midst of a digital economy where data has great fundamental value and if we learn to use it effectively we will earn huge rewards. Without data there possibly can be no progress as it is a basic requirement for smooth functioning both for local companies or government agencies. If data is leveraged properly it can help a company understand the needs of customers, defining their strategy and recruiting the right talent.
“Data is the new Oil”, according to the British architect of Tesco Clubcard Clive Humby data resembles oil as it is valuable but cannot be used unless it is refined. Just like oil needs to change its form to be a valuable entity, similarly, data needs to be broken down and analyzed to be of any value. Data thus is a powerful and valuable commodity unlimited in quantity and also with an unlimited capacity to create harm.
Importance of Data for Businesses
Today the world is viewing a staggering increase in data generated every single day. This data produced by individuals, organizations and other sources provides a competitive advantage for businesses. This is due to the fact that data provides clarity when it comes to decision making and taking risks in business. Data is being compared to oil, it can turn messy just like oil spilt if it is not strategically collected and meaningfully analyzed. This is one reason why businesses are investing in data science by combining technological knowledge, mathematics and statistics to create tools for data analysis. The demand for data science analyst’s is skyrocketing as data science helps to unlock innovative ways to leverage data from profitable gains to fabricating new business models.
Data generation is in for far-reaching applications in almost all industries like insurance, mining, aviation and many more. In the medical profession data created insights especially for keeping health records electronically. Data infrastructure for companies begins by being a cost centre to be converted into a profit centre by treating data as a corporate asset and using it to their advantage. With a combination of both internal and external data companies are provided with profitable opportunities to create new and innovative products and services.
The philosophy of ‘good data beats opinion ‘ holds true with respect to growing business. As more and more steps need to be taken, everything has to be measured and improved. People inspired by new ideas and new opportunities will directly influence your business with new insights. Ensure that you have access to real-time data in your business as just knowledge about profit, costs and total revenue is just not enough.
The possibilities of data usage are endless like the availability of unlimited information, highlighting areas that are underperforming and changing the very organization business culture. But businesses and organizations should be aware of the fact that along with reaping the benefits they need to be prepared to face challenges that can arise due to the unethical data usage.