Since the widespread use of the internet began in the late 90’s we have been in a transformational age. Companies with the latest digital technology in mind can appear and quickly command a large market share from the mainstays. This can be seen across numerous industries; commerce, entertainment and transport have all been disrupted by digitally-led operators. Most companies now recognise a need to transform by leveraging data and technology, and that need intensifies year on year. In order to maximise the opportunity in 2022 and beyond, a business needs to have a digital adoption strategy well underway.
It’s primarily the opportunity presented by data and its management that drives this need for change.
Looking across our example success stories we see that the collection, distribution and analysis of data plays a central part in achieving their exceptional growth.
- Creating user-targeted advertising from previous purchases, search terms and browsing history
- Using customer data to understand attrition, retention and upsell opportunities
- Sending data across the world from buyers to sellers at a click
- Insights, analysis and predictions that drive business decisions
Many companies still run under traditional business models and make decisions based on the opinions of leadership rather than on facts and figures, not fully understanding the insight and clarity that meaningful data can bring. These companies risk quickly being overtaken by those that have ownership of their data, and the skilled workforce that can turn that data into business value. The message is clear, companies must adapt in order to thrive.
Obstacles to change
For many businesses, there may be a recognition of the value of data, but the shift is difficult due to a wide range of factors;
- Fundamental changes to business structures, and skillsets across its employee base. Newer digital organisations competing with incumbents often have over 10% of overall headcount purely within their data function. Asking longstanding market leaders to increase their internal spending in these areas by over 1,000% is a difficult suggestion, even in the face of the potential gains.
- Data currently sits within third-party systems with long ongoing contracts. The limitations of those systems may have become incorporated into business processes. New systems will need to incorporate these systems to bring this data into a central location so it can be leveraged.
- Due to organisations not having a singular data strategy, or a department maintaining their data, employees have acquired tools for their own purposes. It’s not uncommon to look at a business’s list of applications and systems and find competing technologies, often being used for the similar purposes. Consolidation between multiple CRM’s holding the same data with entirely different structures and formats may be difficult if not impossible without a huge amount of effort.
Even for companies that are already digitally focussed there is always more that can be done, more data to be collected and analysed. For many, there is a need to create a consolidated view across the wide array of systems that an organisation needs to have to function in this digital age, those that are well established are now focussed on moving towards predictive analytics and the benefits it can bring in order to gain a competitive advantage.
A call to action
To stay ahead of the competition, modern businesses need to put their data to work. Companies looking to stay ahead of the digital curve need to define a vision for how their data can work for them, analyse the obstacles and changes needed and how the business model will adapt to incorporate data as a central pillar. With the help of data experts, businesses can evaluate the ROI and value of their data strategy and establish the systems and processes they need to use it effectively.
The most disruptive, innovative companies of the digital age are those who understand the value of their data. By making use of your data, you can unlock the insights it holds, understand trends, and make informed decisions backed up by the facts.
What’s next for your data transformation?
Take the next steps in your data transformation by attending our upcoming event, Modernising data strategies in the Cloud on the 24th May 2022.