How can You Become a Data Driven Organization?
Most entrepreneurs dream of turning their passion into their income source, but very few will actually make it happen. The good news is that becoming a data-driven organization can become your career and be the source of money you will need to grow and scale. Success requires two key ingredients: your need to be data-driven and access to data.
Being a data-driven organization requires you to be able to interpret data to inform decision-making. It does not always have to be about selling products or services. You can make money in sales, but the volume of money you make is typically proportional to your sales volume. You can collect more data, analyze it, and make decisions based on that data to make sales.
The next level is to work with private data
One of the ways you can become a data-driven organization is to buy private data. In other words, you can make a profit by selling private data or insights generated from your personal data. A company called WANdisco has developed a global system for storing, searching and sharing data. This enables organizations to find correlations between two or more data points or facts to create knowledge and insight for decision-making.
Suppose you have an insight into a company’s success rates for sales of a new product, for example. In that case, you can use the system to look at different products and find the ones who have the highest sales and focus on those, rather than acquiring this product line.
As you can imagine, selling private data is not always easy
The market is much more competitive than when you sell to a public company. But there is an advantage. You have more room for negotiating. In other words, your next company will be bought or partnered with for the data you are selling or using. And if you can change the process, you can charge more for the data. In my experience, the best and most profitable deals happen when you ask for data and say ‘yes,’ instead of just accepting the first data you buy.
Learn what data-driven entails
Data is no longer the by-product of the behavior of a corporation. It is now actively sought and analyzed by the thousands of artificial intelligence systems sifting through it. This data is the foundation of wealth creation. The supply of data has never been more generous. While some data can be captured, stored and used, the sheer volume of information being generated is truly staggering.
Hence, we see the emergence of disruptive start-ups and an appetite for companies with the data revolution at the core of their business strategy. Several examples of start-ups are utilizing big data and AI for radical and radicalizing personal and social change. They are using the information to disrupt existing power structures and social norms.
One example is the FinTech start-ups that developed a web application that allowed female customers to report instances of harassment and discrimination against them while shopping online. The social media platforms utilize the information it collects from user interactions, allowing them to track and monitor behaviors, traits, and users’ patterns to better market to them.
Perhaps the most relevant is the start-up that created a chatbot that could answer users’ questions from a conversational perspective using its technology to turn each interaction into a performance. The potential of big data is being realized across a multitude of sectors — from retail and education to healthcare and finance.
How to embed data in every aspect of the business?
A marketer is always walking the line between making sure the company is doing well and ensuring it doesn’t accidentally damage customer relations. That’s where embeddable data comes in. Businesses such as Facebook, Groupon, and LinkedIn have embedded data at every turn, but how do you embed data in a specific industry and when?
When embedding data, you’re embedding the most essential data points for a given industry and providing the whole industry with a single platform to access, use, and benefit from.
Businesses have several challenges when it comes to keeping tabs on their data and embedding it into the environment in which it works. The biggest, by far, is an immediate danger to business reputation: privacy. Companies like Amazon and Google give out a massive amount of information without offering a very useful service in return.
Companies have no way of knowing that the information they’ve given the retailer is not being used for nefarious means and sold to another party. The consequence of this practice is that businesses are very worried about privacy — but that privacy is also the best way to guarantee that customers have no reason to be suspicious.
Similarly, the problem with data gathering, analysis, and visualization is that data is used in isolation. What’s the value of understanding another industry when the marketing insights are not helpful? If data is not available, then visualization alone won’t offer any insight and might be incredibly misleading to the audience.
For companies looking to embed data throughout the entire industry, embeddable data is a solution to several of the aforementioned challenges. It can help businesses in a variety of sectors quickly understand the complexities of the market and find valuable insights.