All this talk about data and you might be wondering: is it really worth my attention or is it just another trend? Well, it’s anything but a trend.
The first person to recognize the power of data was Henry Ford, who measured the time of each component in his newly established assembly line, and ended up creating the Fordism, which made nothing less than modern economy a reality. Not convinced yet? Just keep reading and we promise you’ll swear by the power of data by the end of this article.
- If used to its fullest potential, data can bring to your company an unprecedented transparency. As everybody is fully informed of all that goes on in all levels of the organization, teamwork functions better, and so does your company.
- Data is among the most powerful tools that can be used in problem solving. By looking back carefully and analyzing data with total understanding, problems can not only be solved, but avoided.
- Many social problems come from the lack of understanding data on what we are and have done as a people. If well understood, data can be used in driving better human outcomes and “to lead us to large-scale change that can address the huge social needs of individuals and communities”, highlights Kim Syman, a Managing Partner at New Profit where she leads efforts to combine the power of New Profit’s network with organizational learning about how social innovation grows.
- Data is powerful because it takes us from being circumstance-driven to being results-driven. By learning how to use information in our favor, we can improve processes and make decisions more effectively, aiming excellent results.
- Developed economies increasingly use data-intensive technologies. There are 4.6 billion mobile-phone subscriptions worldwide, and between 1 billion and 2 billion people accessing the internet. Between 1990 and 2005, more than 1 billion people worldwide entered the middle class, which means more people become more literate, which in turn leads to information growth. Imagine using all the information stored in the databases worldwide to your favor. Not using all the data available out there could be the only thing in the way of your company going global.
- The industry is moving away from the traditional approach of using specific media environments such as newspapers, magazines, or television, and tapping into consumers with technologies that reach targeted people at optimal times in optimal locations. By studying the data related to your area of business, you can optimize your marketing efforts and reach out to the exact public you cater to.
- Data can be the most powerful tool in your hands when it comes to customer service. Imagine knowing firsthand from your consumer what he thought of your service. Even before he put the word out on social media about his dissatisfaction, for example. If you can access information beforehand, you’ll be able to turn the situation around before it takes bigger proportions. And, of course, improve your customer service in the long term.
- The best business plan comes from the proper use of the concept of Business Analytics (BA), which is the skills, technologies and practices for continuous exploration and investigation of past business performance to gain insight and drive business planning. In other words, understanding data is the foundation for the planning that will guarantee the success of your business.
- Data dashboards, which present data in a friendly visual way, can be a powerful tool in the hands of managers. Through data visualization, they can clearly see numbers of sales, downloads, reviews and rankings. Studies also show that when employees know their performance is being watched publicly, they improve their work, so it’s a win-win situation here.
- Data dashboards also allows business owners to monitor customer feedback throughout different times. This helps in establishing the existence of trends and anticipating future problems, as well as gathering precious info on your customers’ preferences.
By Lizia Santos
Lizia is an online editor, journalist, with an MA in Applied Communications.
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