The growing importance of data, fierce competition and price pressure are powerful catalysts for introducing technological innovations. These drivers are poised to topple traditional business models and introduce new players in the market. Until now, most industries reaction has been muted, even though businesses and entire industries are vulnerable to digital disruption.
To transform exploding volumes of data from across the value chain into intelligent, actionable and predictive insights, businesses must make the most of today’s advanced analytic tools and capabilities. Executives should act now, and rather than undertaking massive change – the focus should be on targeted areas to source and integrate data, build models to transform the organisational culture. In practical terms, this means embarking on a transformational journey in which businesses “think beyond the ‘what’ of digital innovation – applications and capabilities – to the ‘so what’ – harnessing emerging trends, innovation, and disruption to create real business value.
Data in Business Silos
The first step in creating value from data and analytics is ensuring access to all relevant data. This may be straightforward in theory, but it has proven to be much more difficult in practice. No matter the industry, most organisations tend to create silos within their department and business unit structure. As a result, it is difficult to share information seamlessly across those internal boundaries. Different departments may have unique data systems that are not integrated or may even be incompatible with one another.
Combining External Sources with Internal Data
The larger the company, more legacy systems and disparate data that is likely to exist. Managing data across organisational barriers can be costly, and few companies have existing data systems that are conducive to running analytics on a large scale. Most organisations would benefit from the ability to draw on new types of data, from a range of external sources, and combine it with their internal data.
Big Picture Blur
With data silos likely to be a longstanding issue, many companies have internal data residing in separate business units without adequate access by others. In these cases, multiple, redundant data sources blur the bigger picture, and different departments may reach varying conclusions about the same business challenge.
Combining Unstructured and Structured Data
Data integration capabilities are an increasingly valuable resource for most businesses, particularly where data discovery has direct relevance on creating business value. Further, data integration capabilities are most valuable in cases where combining unstructured and structured data from multiple sources, including new external sources, enables better decision making.
In principle, there are no industries in which the ability to continuously integrate new sources of data of any format and quality would not generate improvements. In most industries incorporating more data from multiple sources and applying cutting-edge analytics can create value. Companies can reduce fraud, improve pricing, and improve cross-selling by determining when change may affect client’ product needs. Data mining can also help in the creation of new products. A consumer product company, for example, can add comments about its brands posted on social media platforms to its existing sales reports and demographic analyses.
At OM Data Consulting, we work in collaboration with your technical department and statistical methods, we identify and merge data sources, develop patterns, then develop models for your data-driven business models.