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Chapter 1: Why Data is Important to Your
Business
Have you ever been fascinated with ancient languages, perhaps those now
known as “dead” languages? The complexity of these languages can be
mesmerizing, and the best part about them is the extent to which ancient
peoples went to preserve them. They used very monotonous methods to
preserve texts that are anywhere from a few hundred years old to some that
are several thousands of years old. Scribes would copy these texts several
times to ensure they were preserved, a process that could take years.
Using ink made from burned wood, water, and oil they copied the text to
papyrus paper. Some used tools to chisel the text into pottery or stone.
While these processes were tedious and probably mind-numbing, the people
of the time determined this information was so valuable and worth
preserving that certain members of a society dedicated their entire lives to
copying the information. What is the commonality between dead languages
and business analytics?
The answer is data. Data is everywhere and flows through every channel of
our lives. Think about social media platforms and how they help shape the
marketing landscape for companies. Social media can provide companies
with analytics that help them measure how successful – or unsuccessful –
company content may be. Many platforms provide this data for free, yet
there are other platforms that charge high prices to provide a company with
high-quality data about what does or doesn’t work on their website.
When it comes to business, product and market data can provide an edge
over the competition. That makes this data worth its weight in gold.
Important data can include weather, trends, customer tendencies, historical
events, outliers, products, and anything else relevant to an aspect of
business. What is different about today is how data can be stored. It no
longer has to be hand-copied to papyrus or chiseled into stone. It is an
automatic process that requires very little human involvement and can be
done on a massive scale.
Sensors are connected to today’s modern scribes. This is the Internet of
Things. Most of today’s devices are connected, constantly collecting,
recording, and transmitting usage and performance data. Sensors collect
environmental data. Cities are connected to record data relevant to traffic
and infrastructure information to ensure they are operating efficiently.
Delivery vehicles are connected to monitor their location and functionality,
and if mechanical problems arise they can usually be addressed early.
Buildings and homes are connected to monitor energy usage and costs.
Manufacturing facilities are connected in ways that allow automatic
communication of critical data sets. This is the present – and the future –
state of “things.”
The fact that data is important isn’t a new concept, but the way in which we
collect the data is. We no longer need scribes; they have been replaced with
microprocessors. The ways to collect data, as well as the types of data to be
collected, is an ever-changing field itself. To be ahead of the game when it
comes to business, you’ve got to be up-to-date about how you collect and
use data. The product or service provided can establish a company in the
market, but data will play the critical role in sustaining the success of the
business.
The technology-driven world in which we live can make or break a
business. There are large companies that have disappeared in a short
amount of time because they failed to monitor their customer base or
progress. In contrast, there are smaller startup businesses that have
flourished because of the importance they’ve placed on customer
expectations and their numbers.
Data Sources
Sources of data for a business can range from customer feedback to sales
figures to product or service demands. Here are a few sources of data a
business may utilize:
Social media: LinkedIn, Twitter, and Facebook can provide
insight into the kind of customer traffic your web page receives.
These platforms also provide cost-effective ways to conduct
surveys about customer satisfaction with products or services and
customer preferences.
Online Engagement Reporting: Using tools such as Google
Analytics or Crazy Egg can provide you with data about how
customers interact with your website.
Transactional Data: This kind of data will include information
collected from sales reports, ledgers, and web payment
transactions. With a customer relationship management system,
you will also be able to collect data about how customers spend
their money on your products.
How Data Can Improve Your Business
By now you’ve realized that proper and efficient use of data can improve
your business in many ways. Here are just a few examples of data playing
an important role in business success.
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