Talking about data analysis, The most successful firms in recent years have come from the technological and digital fields.
Good examples are Facebook, Google, Netflix, Airbnb, Amazon, and Uber. But their belonging to the new economy sector is not the only thing that unites them. Without a doubt, all of them share the use of data as a basis on which to develop their business.
Thanks to this, these giants increase their profits by double digits while many representatives of the so-called traditional economy present more modest figures. Despite this, many companies must adapt correctly to benefit from technological advances.
What is worse is that some firms still need to be made aware of the importance of correct data analysis for their future. That is reflected in a report from the University of Pennsylvania.
After analyzing 600 companies in Europe, the US, and Asia, the study’s conclusions show that only 8 percent have introduced significant changes in data processing in the last five years.
Furthermore, only 34 percent of firms offer adequate training to their staff to extract what is essential from the enormous volume of information.
The study also reflects that the US and China have several bodies of advantage over the rest of the world and criticizes that Europe is more focused on improving legislation to protect consumer privacy than on developing a change of mentality that introduces an innovative culture in companies.
The fact that data analysis still needs to be considered a priority in the Old Continent is a burden that must end since companies have a large field of development in this environment.
But to do this, you must first understand the value of data and how it translates into business benefits. The first thing that should be highlighted is that its operation differs from other assets.
The value of data and its usefulness increase as its volume grows. Its use, therefore, is contrary to that of most products and services, whose price increases due to a reduced supply.
However, the mere accumulation of information does not guarantee anything; the key to its use is making it available to all company members and facilitating interdepartmental collaboration.
The big problem that firms face in taking advantage of data is keeping it in sealed compartments and preventing others from accessing it.
In other words, it makes no sense for the sales department to have information the finance team needs access to.
The solution is for all employees to access information since it will be the best way to obtain positive conclusions to boost the business.
How Do We Monetize Information?
Once data access has been democratized in the company, it is time to know how to take advantage of the enormous amount of information that companies can handle today,
and that is also accessible to SMEs and even the self-employed.
The first benefit is cost savings. As occurs in all economic areas, including the domestic economy, an exhaustive data analysis allows us to detect which processes a money leak occurs.
Also, where you are overpaying, decisions can be made that will enable you to save money.
Another critical aspect of monetizing is that you can better understand customers’ needs, habits, and demands with data.
Thanks to this, new businesses can develop more precise models in the field of commercial and marketing management that enable an improvement in user loyalty rates and, therefore, income for society.
Retaining Talent Essential
The benefits that big data has for companies are apparent. But to achieve them, it is necessary to adapt to the company.
This idea makes attracting and retaining talent, especially technological experts, essential. Only with prepared people will it be possible to obtain adequate conclusions that help improve a company’s processes.
But if talent is one of the keys that allows us to take advantage of data analysis, we must remember that the entire company must be imbued with a new business culture where data is valued.
Hence, responsibility in this area should not fall exclusively on the most affected department. Still, the entire workforce must be clear about the importance of good information management for the business’s future.
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