3 Tips To Maximize Your Business Data's Worth
- Written by NewsServices.com
All companies are adjusting to the new status quo, which means shifting from the system of human resources to the advantages and cost savings associated with data management. As you might be aware, data analytics and strong technological infrastructure can play a major role in boosting your company's productivity. It can be the source of accurate information for your business decisions.
However, the benefits of data do not come for free. You're likely paying for IT support, digital asset management systems, and software licensing fees, among other costs, to help your company progress. The key here is to ensure your running costs from these data-driven systems yield an overall net profit. Once you have a strong data system in place, not only will it run in a cost-efficient manner, but you will be able to utilize it more effectively. You will be able to connect the dots between various systems and recognize patterns, putting you in the position to obtain value creation with minimal input. So here's how you can maximize the value your data can lend to your business:
Understanding the data your company produces
One of the key factors in keeping costs associated with data down is ensuring that the company systems are not dealing with more data than they have to. But in order to do that, you need to understand which data is important. Data exists in levels of measurement, which can be surmised into two primary categories: qualitative and quantitative. As the names imply, qualitative data deals with quality insights that can be measured, such as eye color or type of car. On the other hand, quantitative deals with countable data, such as height or weight.
The vast collection of data you have on your customers and company history can help you identify opportunities, points of weakness, gaps in resources, and more. While the data in its raw form is not useful, it can be organized through statistical analysis. For example, you could conduct a frequency count of how many of your customers are of a defined age, which would help you define the demographic you ought to target. This data can also be converted into a form of visual communication for easily understood information, such as scatter point graphs, bar charts, etc.
Only deal with needed data
Now that you're aware of the kind of data that can be pulled in, you need to consider which kind of data is useful to you. Consider your business goals and key performance indicators, and use those as a measuring stick for which form of data you need to bring in. After all, these vast pools of information might be useful, but they also take up processing power and storage space, which are costs your company has to bear.
More importantly, once the data is compiled, it needs to be presented to employees who can use it to make decisions, and this is where you need to be the most selective. Let's say you're dealing with your sales department, and your KPI is increasing revenue. You should only present your employees with data that has measured information related to the product you're aiming to sell. While some additional data points may be needed for context, the less the employee needs to look at to make an informed decision, the faster a decision can be made. Cut out the fluff because it would only slow down the workflow of your day-to-day operations.
Have a clean system in place
This might seem like an obvious point, but far too many businesses do not take the steps needed to keep their data clean, organized, or centralized. First of all, you need to ensure there is a singular system in place so that whoever accesses the data will be looking at the same version of information as any other department. This prevents miscommunications or decisions being made or incomplete or inaccurate information.
Secondly, you need a good data analysis system to optimize your data cleansing and organizing efforts. In the modern world, there are a number of tasks that can be automated. Instead of dealing with a manual system, which can slow down the process, find one that can suit your workflow and automatically analyze and sort the data that comes into the company. Using a system with machine learning and artificial intelligence can allow you to understand complex relationships in the vast pools of data with minimal input.
Conclusion
Proper data management helps you keep your financial house in order, and to achieve this, you need to have a clear understanding of the data coming in and how it's being organized. While there is an overflow of information in the age of the internet, you can know which information helps your company by understanding the nature of data. After this, you must focus on collecting and storing that necessary data and ensure you have a system in place that can clean and store the data for you. AI is your best friend here, as it provides a cost-effective manner of dealing with data pools in an automated manner. You do not have to spend hours of paid labor on digital asset management since your employees can simultaneously focus on more pertinent tasks.
