Digital Transformation: Your Data, Your Value
Data is the foundation on which you build a transformation - without it you cannot move forward. Tools are the how you view and interact with data, and culture is the actual change in thinking and action in your organization. All 3 are required for maximum value.
Data is especially valuable when businesses maintain ownership of it.
Forbes highlighted the world's most valuable brands today as Apple, Alphabet (Google's parent company), Microsoft, Facebook, and Amazon. While all five firms compete in the technology industry, all function differently and offer distinct products and services. Their most notable similarity, however – they reap value from data. In fact, in 2017, The Economist directly attributed Apple, Alphabet, Microsoft, Facebook, and Amazon's dominant market shares to data, labeling it as the world's most valuable resource. Today's marketplace rewards companies like these, who have invested in data collection, storage, and analysis and have led the pack doing so.
While the top five have mastered the contemporary practice of digital transformation, many companies still undervalue their own data. Data analysis requires accurate data, appropriate tools, and an open-minded corporate culture – all of which require a significant investment. As a result, many companies hand their data over to third parties, or worse, forget it's there.
Why internal data provides so much value
Data represents limitless benefits, many of which are untapped. In most cases, data analysis is utilized by an organization's customer segments to increase sales and develop business strategies. However, there exists a large amount of industrial data, that can be leveraged to optimize operations, reduce costs, and improve asset management.
Many of these opportunities for growth and optimization are lost, however, when an organization doesn't leverage ownership over its data. For example, a variety of service and equipment providers collect the data generated by their customers. Upon transfer, the supplier then gains the value of individual customer data and the aggregated data across customers giving them the ability to develop unique analyses and industry-wide insights.
A closeup of a fiber optic network hub and cables.Data is incredibly valuable, especially when businesses leverage ownership of it. Sapere believes that true ownership of data constitutes a significant competitive advantage in today's marketplace. Take these considerations into account:
- Control over analysis and findings – An outside entity doesn't know the ins and outs of your organization and may provide analyses that aren't relevant to your business needs. With in-house analysis, your organization can engage in custom analysis that addresses specific concerns and includes follow-up discussions. Aggregating data across operations – Vendors typically only have access to the equipment-related data, but lack contextual data that a business collects. By comparing and analyzing data across your operations you will get better insights.
- No third-party contract limitations – Maintaining ownership of data means you prioritize its collection and analysis as you see fit. You have control over the personnel, schedule, and expectations, and can easily communicate with your data analytics team. In-house analysis means no competing with other "priority" clients.
- Now you have a choice – Taking ownership of your data doesn't mean your organization cannot utilize the analysis of a vendor or another entity. Instead, it gives you a choice to do it yourself or work with a third party. Owning your data and analysis gives you more than one choice.
Organizations that leverage control of their data can conduct analysis in nearly endless ways, setting their own schedules and working as a team to accomplish the end product. Although additional investment is required, this approach inherently results in more value added. POST NAVIGATION