There are many ways to put data to work, and companies, and especially their leaders, are advised to explore as many of them as they can. Each presents distinct opportunities for profit and competitive advantage, from product improvements to new revenue streams to possible industry game changers. At the same time, each presents challenges that must be experienced to be appreciated.
Does Your Company Know What to Do with All Its Data?
Today’s companies have access to more data than ever before. But are you leveraging all that data as effectively as possible? In this piece, the authors offer seven key methods for putting data to work that managers and leaders should try out to see which work best for their business: First, use data to make better decisions. Second, use it to innovate products, services, and processes. Third, “informationalize” your products, services and processes. Fourth, improve quality, improve current uses of data, eliminate costs, and build trust. Fifth, provide customized content. Sixth, use data to “infomediate.” Finally, identify and exploit asymmetries. Once companies have tested these approaches, they’re likely to discover that some provide greater value than others. Leaders must then crystallize those options that create the most value and profit into their company, and implement them in their long-term data strategy.