Data is what keeps modern companies in the business. As much as 2 quintillion bytes of data are generated each day across all industries and it’s easy to see why data has a big role in digital transformation.
Nowadays, companies are creating and collecting bigger amounts of data than ever before. If you’re a smart business owner, you will use this plethora of data to gain insight and understand your customers and market in more depth.
Let’s take a closer look at how this data is the key to digital transformation and why it’s so relevant.
Importance Of Data Management
While data is the key to digital transformation, if you don’t know what you’re doing, data can even hinder your digital transformation. This is a common occurrence among companies that don’t manage their data properly.
A vast amount of data won’t mean anything if you don’t know how to manage it, and the biggest reason organizations see data management as an issue is that they work with unstructured data. As much as 95% of businesses mention the prerequisite to manage unstructured data as an issue for their business.
Remember that data comes in all shapes and sizes, which means it’s usually unstructured. But with the right warehouse, you can also transform your data and make data management easier than ever.
Importance Of Data Warehouses
Big data is modeling the world, every business generates a vast amount of data every day, and for that reason, you need a place to store all that data. Data warehouses can help with this.
A data warehouse is a system where a company stores all of the data it collects from internal and external sources and sorts it based on different criteria. Warehouses store historical information, and that makes it easy for people who use them to analyze the data from any point in time.
There are many reasons why data warehouses are important:
- Ensuring all of the collected data is consistent and accurate and making it much simpler for decision-makers to analyze it and share their insights.
- Allowing for data-driven business decisions and helping you create better, faster, and more accurate marketing strategies.
- Enabling managers and business leaders to collect business’ historical activities and greatly improve the bottom line because they will see which initiatives have been more successful than others.
To make sure you wind up with the warehouse that fits your business’ needs, you should find comparisons between multiple warehouses such as Redshift vs Snowflake. With this and similar information, you will have enough knowledge to make the right choice.
Transform Your Business From The Inside And Set Goals
Most businesses see the transformation they can make for their customers as the main importance of data, but that’s simply the wrong way to look at it. To truly present a better offering and experience to consumers, you need to use data to transform your business first.
To do that, you can forecast optimization and liquidity opportunities, optimize employee productivity management, and protect your franchise through fraud-detection strategies. Once you’ve done that, start to focus more on your customers and their behaviors while setting realistic goals.
All of the data you collect and store in your warehouse will be invaluable for your business because it will allow you to set goals for the future. When you’re doing that, make sure you’re as specific as possible, and set goals such as retaining customers or reducing costs of operations.
Know What Your Customers Expect And Give It To Them
Data holds the key to digital transformation because every interaction that is done online generates data. Data has been around for a while, but in modern times, customers’ expectations for what businesses will do with that data changed significantly.
Your customers expect you will use the data in real-time to make quick decisions, provide high-quality self-service, and optimize operating models through data-generated intelligence. To do this, you should discover and analyze data to create the perfect comprehensive strategy.
And here are the first steps you need to take:
- Assess where your company is in your digital transformation journey.
- Create a data strategy all of your employees will have access to at any time and explain it thoroughly.
- Clearly define all of the KPIs you need to reach your goals.
- Find a few use cases that will help you create successful strategies.
Digital transformation isn’t a futuristic concept anymore. It’s here and it’s happening across all industries, all thanks to data. If you want your business to have a future, you need to get on board with digital transformation and use the data you collect every day to the fullest.