Data in the 21st Century is like Oil in the 18th Century: an immensely, untapped valuable asset. Like oil, for those who see Data’s fundamental value and learn to extract and use it there will be huge rewards.
We’re in a digital economy where data is more valuable than ever. It’s the key to the smooth functionality of everything from the government to local companies. Without it, progress would halt.
Data Infrastructure Should Become a Profit Center
For many companies, their data infrastructure is still a cost center nowadays and should become a profit center by using the data to improve everything, day by day. Companies must begin treating data as an enterprisewide corporate asset while also managing the data locally within business units.
This enables sharing of data about products and customers – which provides opportunities to up sell, cross sell, improve customer service and retention rates. By using internal data in combination with external data, there is a huge opportunity for every company in the world to create new products and services across lines of business.
Good Data Beats Opinion
When your business is growing, more and more people have opinions about which steps need to be taken. It helps to work with a ‘good data beats opinion’ philosophy. Almost everything can be tested, measured and improved. If you can measure it, you can improve it. Inspire people to come up with new ideas and pick up new opportunities and just test it and see what the impact is. A test which you’re measuring is never worthless. At least you get new insights about if it’s working or not (and why) and in the best case, you got insights and improved your business directly.
Make sure you’ve real time access to the most important data in your business. Only knowing your total revenue, profit or costs is not enough. Knowing which KPI’s influence them and other business goals is much more important, because you learn how to improve your business. In fact, the value lies in micro data, not in macro data.
Joris Toonders is the entrepreneur behind Yonego.
