Using new technologies, such as big data and social media, marketers can better measure the effectiveness of campaigns. More focused marketing efforts based on these analyses reduce acquisition costs and boost the value of the customer’s acquired. Arguably, every business is data-driven. This does not necessarily mean that our decisions are based on data, but our operations are.
Without accurate, consistent, appropriate data the implications for any business are far more serious than the lack of trusted data for decision making – although this is a real concern.
• Supply chain data errors cost companies an estimated 2% to 4% of turnover a year.
• Billing issues impact cash flow and create unhappy customers.
Any one that does not believe that they are data-driven should try switching off their systems for a day or two to see how they cope.
It is time for business to recognise that an investment in data must go beyond technology to embrace a change in the way that we, as business people, manage and use data. The principles of data governance – a set of policies and guidelines for the appropriate use of data with appropriate business authority – cannot be allocated to IT departments. This is not because they do not have a critical role to play but because they do not capture, use, change or delete data.
Being data-driven can mean allowing bad data to continue to compromise effectiveness and productivity. It can mean also mean optimising our approach to data management to maximise profits.
