data seems like the new magic word that can eliminate all your company’s problems. But, as many CIOs will confirm, the data itself is worthless. It is valuable only within the right context and when guided by analysis, leading to new insights, preferably actionable insights. But how do you select the right platform for data collection and analysis? And how do you translate that data into useful, actionable information? Here I lay out a broad roadmap to help you start turning your data into profits.
The most important trends in IT right now all involve data. From big data to Machine Learning (ML), Artificial Intelligence (AI) or Internet of Things (IoT), they are all about collecting large amounts of data. Suppliers of hardware and software are taking advantage of this fact and are coming out with products to capture, collate and present such data. But it can be very difficult to create a clear business case. Big data, ML, AI and IoT are still largely unexplored areas for most companies, especially if you're not a Google, Facebook or Amazon.
The average organization can do better by first setting up a business analytics platform that can manage and analyze the currently relevant data. A cohesive business analytics platform is a start, and definitely a requirement if you want to get in on these promising new technology breakthroughs in time.
If you see through all the hype, the value of data lies in the algorithms, regardless of volume. With these mathematical models we can combine data, relate and manipulate, to come out with useful insights. These algorithms drive the Google search engine, the Netflix recommendations, the digital voice assistants and the stock market and, in time, also the average business. The problem in many non-digital organizations is that the available business data is rarely managed with a holistic approach.
Departments like sales, marketing, production and logistics often use separate systems and analytical tools, so their data cannot be simply combined for analysis. With time, data siloes proliferate and run out of control. Companies should first solve this problem, before they are tempted to invest in hypes such as big data and Machine Learning. Separate analytical tools should be replaced by a comprehensive business analytics platform which can access and interpret all key underlying data sources. This is the key towards building a future-proof business analytics platform.
When building a future-proof platform for data analysis, it pays to keep future applications in mind. Using big data might not be attainable right now, but it might be in the near future. Imagine how you would eventually use large amounts of data from social media, customer interactions and the Internet of Things to your benefit.
You could, for instance, increase your understanding of customers’ needs by analyzing their social media posts or interactions with your company in a more holistic way. Or you could use all kinds of data from IoT devices to precisely monitor and control your company’s operations.
