Data, It's Kind of a Big Deal!

Recently, one of my siblings asked me why everyone is talking about Data and why their organization are running several projects that have Data “in their name”.

My first thoughts were that if he isn't clear on why Data is a priority for the organization then they've yet to establish a Data Culture, or their Data Strategy is not delivering results.

The Basics

Whichever industry you work in and whatever your field of interest - everyone will have come across a story about how Data is changing the face of our world. It might be for helping to cure a disease, increase a company’s sales, make devices smarter (e.g., Alexa, Google Home) or tailoring ads and recommendations that pop up when we’re online (e.g., Amazon, Netflix, Spotify).?

It is Data that makes all of these things work, but only “good” Data works well.. ?

This means that the Data needs to be accurate, reliable, and current – imagine what would happen if Google Maps was updated only once a day instead of in real-time, we’d have no idea of what roadworks or traffic lay ahead of us.

Even with live Data, the accuracy and reliability of information is key and helps to avoid situations like this "virtual" traffic jam.

The Evolution

Data is simply another word for information. In technology and business, Data often refers to information that is machine-readable (as opposed to human readable).

Machine-readable Data is information that computer programs can process, which traditionally had to be structured in a specific format. These days, un-structured Data like email, images, video, and audio can be interpreted by machines. This provides the basis for machine learning (ML), which enables intelligent automation and artificial intelligence (AI).

ML is based on the concept that systems can learn from Data, identify 
patterns, and make decisions with minimal human intervention.        

The Big Deal!

You, like my sibling may still be thinking “so what? machine learning and AI isn’t much use in the workplace”. In fact, the opposite is true – our work environment is where Data can provide the biggest impact.

According to this 2019 McKinsey report, companies with the greatest overall growth and revenue earnings are three times (x3) more likely to have data and analytics initiatives that are contributing at least?20% to their bottom line.

Here are some simple use cases that apply to any business. These methods are being used by companies to save money and improve efficiency by using Data in an intelligent way.

What are the Limits?

When it comes to the potential of Data in business, the only practical limitations are the availability and usability of quality Data, as well as your own imagination.

It's worth keeping in mind that there are regulations pertaining to the use of personal Data, including GDPR and CCPA. The management and protection of Data should be a priority for every organization, especially when it relates to personal or sensitive information.

Here are some statistics according to research from DLA Piper, based on Data Protection Authorities activity between January 26, 2020, and January 27, 2021:

There are opportunity costs associated with having low quality Data but there are also significant penalties for breaching regulations when it comes to the misuse of Data.

Data is like any asset, if it is lost or treated badly - the value is affected and significant expenses can be incurred.

Conclusion

In the digital economy that exists today, Data is an increasingly valuable asset that grows in value through use. For those who see the fundamental value and understand how to extract and use it properly, the rewards come quickly.

If you want to learn more about ways to use Data that add value within your organization, contact me here. If you want to read more about Data Culture and Strategy, try this article.