Data: The Lifeblood of Business

Over the past few years, we’ve regularly heard this analogy: “Data is the new oil.” While I agree that data is a precious commodity to business, I believe there is a more accurate analogy: Data is the lifeblood of business.

There are striking parallels between corporate data and human blood: Just as blood is essential for the survival and functioning of the human body, data has become the lifeblood of modern business, enabling survival, growth, and the ability to thrive in a fast-paced, brutally competitive economic climate.

I’ll be exploring these parallels and how to maintain quality, healthy data in a two-part analysis. In this first installment, I will explain how and why business data is as essential as blood to the body.

Moving Information From One Function to Another

The human body is comprised of a skeletal structure supported by muscle fiber, tendons, and ligaments that protect its vital internal organs. For a business, the network infrastructure and its cybersecurity systems, whether software or hardware-based, support and protect the systems that are required for operations: enterprise resource planning (ERP), customer relationship management (CRM), HR tech, finance tech, and many others.

In the human body, blood delivers oxygen and nutrients to cells, removes waste products, fights infections, and transmits hormones.

Similarly, data flows through an organization carrying valuable information from one business function to another. It provides insights, informs decision-making, optimizes operations, drives innovation, and forecasts future trends.

Despite the similarities, there is one stark contrast between the human body and the systems of a business.

Unlike the remarkably efficient human body, business data doesn’t have a pre-defined structure. Undoubtedly, there are best practices for building architectures that supply actionable data to a business's various departments and functions. However, those best practices are often left to interpretation and heavily depend on the knowledge of those administering the data.

Identifying Threats, Opportunities, and Problems

Blood acts as a communication network within the body, transmitting signals and vital information from one organ to another. For example, when an infection threatens your body, your blood sends white cells to fight it off.

This is similar to data in an organization, which serves as a means of communication and signaling. Data helps to identify threats (like competitors or market changes), opportunities (like new markets or products), and problems (like operational inefficiencies or customer dissatisfaction). By monitoring signals emanating from their data, businesses can respond appropriately, just as the body does to threats of disease or injury.

Building Adaptability and Providing Performance Indicators

The human body learns and adapts based on the signals received through the blood. For instance, if an individual begins a new fitness regimen, the body will adjust to the increased demand for oxygen and nutrients, prompting changes like increased heart rate or accelerated muscle development.

Likewise, data enables a business to adapt and learn. Businesses can understand consumer behavior, market trends, and internal performance by analyzing data and adjusting their strategies accordingly. This continuous learning and adaptation cycle is critical for a healthy body and a thriving business.

Just as doctors analyze patients' blood to assess their health, businesses analyze data to evaluate their performance and vitality. In healthcare, blood tests can reveal underlying diseases, nutritional deficiencies, and overall health status. Similarly, businesses use data analytics to detect issues and diagnose “health” — assessing performance, identifying bottlenecks, predicting future challenges, and uncovering opportunities for growth. In essence, both blood and data serve as vital indicators of health.

Data is the lifeblood of today’s businesses, as necessary as blood for the human body. Both are vital for survival, functioning, learning, and adaptation. They carry crucial information, signal potential threats or opportunities, and serve as key health indicators. Recognizing this parallel can help businesses understand the critical importance of data and the need for proper management. In the same way that maintaining healthy blood is crucial for our well-being, maintaining a healthy data flow is crucial for business vitality and success.

In the next installment of this two-part series, I will dig into the effects of dirty data on a business and offer some insights into maintaining data quality and flow for business success.