Data has a very specific role in continuous digital transformation. The role of the data in the digital world – and the world in general – is to provide information for decision making. Decisions could be related to products, customer experience, and employees or about anything. With the relevant data, companies can choose their investment focus based on which services provide best value for customers.
When consumers operate in the digital world, practically everything they do can be traced. The amount of data has been increasing steadily and will continue to rise in to the foreseeable future. Internet of things and new online services drive the growth of the data.
The amount of data we can receive about our personal sleep patterns and effects of our exercise routines has been increasing year by year. The size of the equipment collecting the data is decreasing. What was once the size of a wrist band can now be measured with a device the size of a ring.
Data is the ultimate equalizer
The reason why data is the ultimate equalizer is that instead of add-hoc feeling based decisions, for example, organizations can reward employees based on their true value to the company. Now that there is so much data available, it’s easier than ever for managers to treat employees fairly, based on the actual results of their work.
This has not always been the situation as before having all the needed data available, managers made many decisions based simply on their own preferences.
The magic happens when organizations combine data from many sources
Customers expect you to use their data. I personally hate web services which ask me the same data that I have already given to them before. There shouldn’t be any reason why I need to fill-in my address and birth date after I have been their customer for over ten years, not even if the web component is made by the marketing team instead of the support team.
Silos prevent the data from being utilised
Many organizations have moved to a stage where they have a lot of data collected. Yet, these organization still don’t have a clear vision of how they could use this data. For example, web stores and all customer touch points produce a lot of data. Quite often some organization unit such as marketing or product development owns this data. Other organization units cannot easily use siloed data.
Tips for the leaders
Organization should not only consider customer contact points through an organization’s units. They should also consider web services from the point of view of the customer.
- How would we build this service if we started from scratch?
- What would we do if we had all the data available?
- What would be easiest for the customer?