The use of analytics is no longer limited to the large organization with deep pockets. It is now being used at a larger scale, with 59% of the companies’ using analytics with some capacity. And several companies are capitalizing in some role. For instance, in many of the marketing companies, they typically scrub data for advertising insights for their clients. Additionally, many of the companies have revolved their business strategies around that data.
According to a survey at Deloitte, 49% of the respondents say that analytics helps them make better decisions in their business, 16% say that it better enables key initialization of business strategies, and 10% say that it helps them to have a much better relationship with their customers and strategic partners. However, to make full use of the data, you should know how to get full value from your data.
Data Quality Standardization
There is certainly not a lack of data. However, you will find dearth of data available in servers around the world. I read a study of Harvard Business Review that the data quality is far worse that any company would realize, with just under 3% of the data available can be categorized as “acceptable”.
This is a problematic situation of companies from every industry who are trying to use data for insights. It can translate into wrong and misleading customer and prospect data, wasted marketing and communication efforts, increased spending and, worst of all, worse decision making. Therefore, data quality should be the topmost priority for all businesses.
Although there are several ways of solving this problem, but one of the best approaches is through WDI (Web Data Integration). WDI is a process of integrating data from diverse sources. Additionally, it involves aggregating, and normalizing it to make visuals for transforming the data to be more digestible. It also makes data ‘intuitive’ – which means enabling the user to interact with the data to make it more customizable for their own needs.
It allows you to take a significant amount of data from a myriad of data sources and break it down to an extent that the user can digest this amount of data easily and quickly. If we are looking to clean up data quality, this process makes it possible by streamlining the process.
Before embarking on the WDI process, stakeholders should first figure out what goals are set by them and then decide whether they will import first party, second party, or even 3rd party data for the solving of their problems at hand.
Another way companies can use data is through the usage of machine learning, where computer systems learn, improve, and evolve as they take on new data.
Evaluating Data Quality
So, how can one assess data quality of datasets in front of you? In a Harvard Business Review article, data guru Tadhg Nagle, Thomas C. Redman, and David Summon recommend the following essential steps:
- Collect a list of data records around 100 that you have used or created.
- After that, focus on 10-15 important data elements that are most integral to your business operations.
- For examining the results, let management and their teams go through each record and pinpoint any noticeable errors.
One you look through the results, the quality level of your data will be in front of you. If more than two-thirds of the resultant data is mistaken, that’s a sign that data quality is not up to the mark and is adversely affecting your performance and it needs some improvement.
Furthermore, here are some more tips for data management:
- Transfer all your data to a centralized location to have a much more seamless data architecture.
- Make sure that your employees are abreast with the latest data practices.
- Creation of data management hierarchies is needed if you have multiple teams to keep it all organized and reduce the chances of a breach trying on your data warehouses.
- For handing core data management, assign certain good employees.
Selecting the Right Data Tools
Data has a major part in success of any organization’s success, and it is also one of the most valuable assets a business can have. This is the reason it is vital to not only choose but also use the right tools and technologies to completely use all available and make it as exact as possible.
Below are some key things we look for when analyzing tools/technologies for correct analysis of our first party data:
- Data normalization for simple organization
- Dashboards that to be shared for streamlined communication between the data analysis team and the relevant stakeholders.
- They should be completely mobile.
- Third-party integration should be available.
When looking out for tools, it’s wise to request a demo for having a look at it for a few days, what the dashboard is like, how intuitive it is for the users and so on. Do you naturally admire the look and feel of the product right out of the box? O do you experience it to be a bit friction-filled?
First impressions are the key, so you want to ensure the product is good enough for you.
Analytics has travelled and transformed into something big over a brief period. It can help is multiple aspects of operations and be the key for success for many businesses. But to reap the benefits, companies need to know how to effectively use this technology, improve the quality of data, and manage data with effectiveness. Those companies which can work on that will surely have a substantial advantage over the competition and be poised to succeed in 2021 and beyond.