Data has become vital in the modern economy. It’s called the “new oil” because of its value as an economic driver in the digital age.
Many people say the words “You’ve got mail” are among the best parts of mailboxes. Maybe they’re right. Either way, saying them out loud makes us feel good. It connects us to the idea of getting mail, even if it’s just a bill.
Data is like the new oil for marketers. It is crucial to running a profitable website or online store, but it is also over-valued by many.
There are those who say data is the new oil and it’s becoming the world’s most valuable resource.
While others claim that data was the new oil, until the oil (businesses) caught on fire.
Data is not a luxury. It is an essential part of running a successful business. If your business doesn’t have a solid data strategy, you could be missing out on huge market opportunities. All businesses should have a data strategy. If you’re not using data to help your business grow, you could be losing out on huge market opportunities.
How to Get the Most from your Data Strategy
A data strategy is an important part of any organization. It helps them make better decisions, enhance their marketing efforts and solve problems.
Data strategy simply defined is the process of deciding which data is important to your company, how you will organize it, how you will access it, how you will measure it and how you will report it.
More specifically, a data strategy is the process of extracting information from your existing customer list or prospects, and then using that info to help you make decisions about which marketing campaigns to run, products to promote, and so on.
Data collection. The first step in any data pipeline is the “ingestion” of data, and in a data strategy, the process isn’t much different – data must be collected before it can be used.
Data storage. Once data has been collected, it must be stored in databases such as data warehouses or “lakes”.
Data management. Stored data will then be organized and maintained so it can be leveraged when needed.
Data analysis. Sometimes, data needs to be analyzed. In those cases, it can be done by a data analyst or, a member of the marketing department. Either way, certain members of the organization will analyze the data and glean insights from it.
Data usage. It’s finally here. Data is going to be applied in order to enhance business outcomes.
A data strategy should be closely integrated with the rest of the business, the IT strategy, and operations.
A data strategy should always include goals, operational steps to achieve those goals, processes that drive the data strategy, roles within the organization, metrics and KPIs. This is true for any plan; it is especially true for a data plan.
The overarching purpose of the data strategy is to provide the right information to the right people at the right time. Therefore, all of the elements of the data strategy should be designed to support the organization’s objectives.
Data is the New Oil – Data Strategy
Commonly cited benefits of data-driven methods and strategies include:
Commonly cited benefits of data-driven methods and strategies include:
* Increased sales by as much as 100%
* Reduced customer support calls by up to 90%
* Reductions in inventory write-offs
* Fewer mistakes (both human and organizational)
* More accurate forecasting
* Greater employee satisfaction
* And so on…
Data-driven methods and strategies lead to deeper insight into business processes
increased business efficiency
a greater understanding of customers and their needs
Data can generate profound insights throughout your entire organization. It can improve internal business functions, enhance customer-facing applications and so much more.
Data is the raw material of competitive advantage. Those who can collect and process it effectively will have a major competitive advantage for the foreseeable future.
Data Strategy: What You Need to Know
Here are a few points to keep in mind when creating a data strategy:
A data strategy doesn’t start with a collection of data. Data strategy is about focusing on the right things to achieve the right results. If you don’t have goals, you won’t have anything to measure success against, so there is no point in starting with the data. Leaders and managers must first focus on what they want to achieve before any data (or process) can be used to help them get there.
There are three primary components to successful experimentation. First, you must move quickly and fail fast. That is, you should immediately abandon ineffective attempts at improvement and focus on the next most promising course of action.
Secondly, you must experiment with data. Look at what is working (and not working) and then use that knowledge to make strategic refinements.
Thirdly, you must experiment and use common sense. Sometimes, it is obvious that a process will not work. Other times, you may find that a process works “just fine” but would be better if it worked a little faster or a little slower.
Data is everything. If you can get your hands on it, use it. Modern software is a virtual goldmine of data that many organizations ignore.
In order for an organization to obtain buy-in early on, it must have a strong data strategy. Executives who have the power and desire to make change are vital to the success of any initiative. If your organization doesn’t have a data strategy, see if you can get the support of CIOs.
Organize your tech stack to support your strategy. Your data strategies should only support your business strategies if they are thoroughly embedded throughout all departments and their tech stacks. This will require the implementation of policies and practices across the organization, but it will be a gradual process for most companies.
As businesses grow and change, their data needs also change. When organizations are less mature in their data strategy, they will need the expertise of people who understand how to manage change. These people are called “change managers according to the research by Jubilee Ace’s team
If your organization isn’t already using data in its culture, it should be. Data-driven practices will permeate throughout your business, impacting every aspect of how you do business. If your organization has some resistance to embracing data in the culture, you need to overcome that cultural block as soon as possible.
Crafting a powerful data strategy is an essential element of improving almost any business. It can have a dramatic impact on your bottom-line, so it’s imperative that you execute a plan that is tailored to your unique needs and circumstances.
So is data the new oil? Tech experts talk about how data can lead to better decisions
Certainly it will never be worth as much as the three main currencies of the modern world (dollars, pounds and euros), but it will certainly be a very valuable currency all of its own. In fact, just in recent times, we have seen an enormous increase in the use of data as a currency. Consider this: A mere 20 years ago, if you wanted to market something, the way you did it was to put up a huge display ad in a newspaper. People read those ads and, if they were interested, they’d call your toll free number which would connect them to a live human being who would ask questions and take orders.
Conversely, if you are new to data or just starting out, don’t even think about trying to do this yourself. Instead, pay someone with real experience to help you. Those of us who have been in the trenches for years can help those of you just breaking in by pointing out the pitfalls, giving advice on what to do, and generally keeping you out of trouble. Jubilee Ace Bobby Low, Data is the lifeblood of any intelligent marketing campaign. If you want your campaigns to succeed, you need good data. However, simply having a bunch of numbers doesn’t necessarily mean you’re going to end up with good data. Good data comes from a process, not a project.
For more news updates also read our blog – Why Intelligent Automation (IA) is the Future