Are you doing enough to manage your data? Organizations often find themselves working for their data, instead of the other way around. Obviously, this is far from ideal, particularly in an environment in which data is often vital to the success of a business. Clearing the data clutter helps you concentrate on the needs of the business.
Productivity is adversely affected when you work for your data. Data today is characterized by volume, velocity and variety. It is rules-driven and technology enabled. When your data works for you, however, it is more dynamic and interactive, it is discovery and value driven, it encompasses internal and external information, and it is analytics enabled. But getting from Point A to Point B with your data is not easy. Context and connectivity really do matter. While the ability to collect, manage, and analyze data can lead to better business outcomes, the difficulty of realizing value from it will continue without solid planning and effective use of new technologies.
Today’s approach to data is siloed. The path to value is point to point, with no connectivity between data sources. Extracting data from multiple sources (markets and competitive insights, customers, the supply chain, HR, finance and performance management, IT, and regulatory and risk) is inefficient, and information is lost in the transition. Better analytics help you reexamine how your business collects information right from the start, and connect the information silos for clearer benefit. You must recognize the current value of your data, gain confidence in external data sources, find balance in data and analytics, and then capitalize on the results.
Business Intelligence and analytics experts have always extracted significant value from internal and structured data, helping with competitive positioning, pricing, target marketing, and supply chain optimization. The conventional approach is to start with a question based on the expert perceptions on what needs analyzing. Now that we are facing Big Data, there is simply too much information to consume in a timely manner. Faster data processing is crucial. To extract value, we need to focus on the maximum impact elements falling within what we call the “Value Zone,” comprised of the Growth Zone (driving revenue and enhancing customer experience), the Efficiency Zone (controlling cost and quality), and the Risk Zone (maintaining financial health and reducing exposure).
With even bigger data looming on the horizon, it is essential to look at data comprehensively but not up-end the whole system. To help achieve faster results in this era of real-time enterprise, business must ensure that the critical connection facilitated by information across the organization is effectively captured. Finding the right balance between data and analytics will help demonstrate the ROI from the technology investment. Companies will not be able to ignore the benefits, particularly when their competitors are adopting these same methods.