Every company is collecting data, whether it’s consumer buying habits, demographic data from third-party sources or insights from weather patterns. That’s good news—it wasn’t long ago that this kind of critical information was mostly ignored. But it’s not enough: companies must now start using that data to run every part of their business.
There’s more progress to be made: just 34% of executives in a recent PwC U.S. Cloud Business Survey say they’re achieving their target business outcome when it comes to improved decision-making through better data analytics. And a mere 16% say they’re realizing substantial value from their data.
What’s holding companies back? They’ve built up technical debt—investments in legacy systems that they’re reluctant to abandon; they can’t keep up with new technology innovations coming to market; and they’re concerned that their business can’t cope with change. There’s also a general lack of data literacy within companies, with many having trouble figuring out how to make data-based decisions and how to truly activate insights.
Five ways data can transform organizations
To successfully modernize, companies must invest in technology and embrace change, especially around data. The payoff? Your company can become more productive, efficient, and responsive. Here are five ways data-driven organizations can realize greater value.
1.Creating personalized customer experiences in physical and virtual worlds
Most companies want to provide personalized experiences. The only way to do that is to use significant amounts of customer data—whether it’s first-party information gleaned from consumers themselves or third-party data gathered by other organizations or data consortiums. While some of the largest retailers are putting products they know their customers will want in front of them, whether it’s through ads or the front page of their online stores, data-enabled personalization is only getting started.
Virtual environments like the metaverse are going to be the next emerging area that could offer a higher level of personalized customer experience. Unlike in the real world, where retail stores carry products for everyone, the companies that know their customers best can create hyper-personalized stores in a virtual environment that only showcase what a particular persona would be interested in. Customers could browse clothing options that only include their style and color preferences. The ultimate goal is to give people a personalized experience and increase brand affinity.
2.Generating new revenue streams through data monetization
Many suggest data is the new oil. We see that becoming true, as a number of our customers have started generating revenue from the information they collect. While data monetization within the enterprise is a given, external monetization of information is a rapidly expanding business.
To do this right, companies need to improve their data collection methods with better data quality and adherence to privacy regulations, and they must generate unique insights. With data sharing becoming more common, technology platform companies are working across industries to create data sets that provide a 360-degree customer view they wouldn’t obtain on their own.
For instance, consider a large bank and retailer working together to see how financial transactions influence purchasing habits. This data is valuable for retailers, but they can then sell that information to health-care providers, who can then leverage this data to track food habits and influence health and well-being.
3.Empowering sustainable decision-making
Environmental, social, and governance (ESG) issues are making companies rethink the way they do business. Whether it’s planning decisions around building locations, future supply chain routes, or the amount of insurance to buy, almost every aspect of business operations is impacted by ESG. Artificial intelligence tools, which can ingest and analyze all kinds of information—such as climate patterns, optimal delivery routes, and population growth trends—are helping companies make better ESG decisions.
By: Matt Hobbs, Anil Nagaraj
Title: Maximize business value with data-driven strategies
Sourced From: www.technologyreview.com/2022/06/22/1051996/maximize-business-value-with-data-driven-strategies/
Published Date: Wed, 22 Jun 2022 14:00:00 +0000
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