Why do we need data in business
Many people call data and information The gold. Google, Amazon, Microsoft, Apple and all other leaders in the high-tech industry are searching for data to improve their business. This is not limited to the mentioned companies and industries. Traditional and lower-level organizations are also trying to get data and analyze data.
Mainly, there are three reasons why we use data. Let's go through them one by one:
A) Better decision making
Data helps business leaders to focus more on statistical analysis, mitigate risk and market changes.
Smart businessmen, instead of going with guts, go with data, statistics, and diagrams. We all know that analyzing data is more important than gathering it. The good analysis creates a competitive advantage and misinterpreting data pushes all programs to the lowest situation.
B) Business efficiency & operations improvement
In the manufacturing process, maintenance experts use some sensors to examine the situation of different parts and as soon as they are used enough to be changed the sensors inform people. This is a small example of predictive maintenance.
For instance, by understanding HR analytics, companies can estimate the number of resignations or requests to be rotated. Therefore, recruiters start searching for certain positions that might be vacant soon and they add people out of the company to their pool.
C) Data monetization
Applications such as Uber know exactly where you are. Uber, however, has another successful business called Uber Eats. We shouldn't be surprised if on our Google search for completely another topic we find some restaurants around us advertising their food as the connection to Uber Eats.
We had a video previously about Tesla and connectivity in Automotive industry. At the end of the video briefly we spoke about how Tesla can monetize data gained from users.
All the above solutions are small examples out of an ocean. It is completely up to us how to collect data, analyze and use it in our business.