Data Is the New Oil of the Digital Economy. At the core of every business decision made, Data is needed: Human resources gather online Data to determine the best people to recruit, Marketing departments use Data to find consumers who are ready to buy, Schools and Universities use Data to enhance their teaching systems, retailers use Data to improve sales, Healthcare firms use Data to improve patients’ treatment, Amazon uses Data to decide what products to suggest, Instagram uses Data to enhance his algorithm of displaying suitable posts, etc. The list is far longer than anyone may think, but we will stop here for now …
Being everyone’s main concern, what is Data?
Customers’ complaints, emails, customers’ behavior when browsing the internet, customers’ feedback on Twitter and Instagram, number of new customers last month, availability of a product in certain areas, how customers are using the service, etc. All these are data. Any information that is related and may be useful to the business is data.
However, this data is only useful when translated to what it means to the business. Here comes the data literacy, the ability to read, understand, create and communicate data as information, into which we will drive in details in other posts.
Why it is till now that everyone started talking about data?
Since the word “business” was found, businesses had been using information and knowledge to move forward by enhancing sales and reaching more customers. It is just that now this information is smarter and more analyzed: new sources available, like Social Networks, are being used for more accurate, and real-time analysis and newest technologies are allowing a huge amount of data to be retrieved and analyzed. It is about insights and business decisions nowadays; the more data a business has, the better the decisions it can make.
How the data is used by Businesses?
Data is used by almost every business for decision making. Small businesses are relying more on interactions, past purchasing and social networks, while bigger businesses are more into IT solutions and systems for retrieving the biggest amount of data possible for analysis/analytics purposes.
However, no matter the size of the business, data is being used for driving insights to better customer experience, enhanced marketing campaigns, sales’ improvement, thus more revenue.
Therefore, for every business owner, marketer, and salesperson, collect as much data as you can, analyze it, drive decisions and move the business forward by making a difference. It is as easy as that. Either you do it, or your competitor will.
Computer Engineer • Entrepreneur • Blogger