Why Data is Important in Digital Transformation

The world has become incredibly data-driven, which is only expected to continue. A report – The age of analytics: Competing in a data-driven world – published by the McKinsey Global Institute suggests that this trend is only expected to increase; the range of what’s possible and the number of opportunities have grown and will continue to grow.

Big data is all the rage these days, and for a good reason. Recent advancements in technological fields such as machine learning and artificial intelligence have made it possible for every industry or sector to use the data they collect or hold. Governments, for instance, store huge volumes of data. This data often lies around without being used until it becomes inaccurate or outdated. 

This unfortunate waste of data could otherwise be used to elicit valuable insights. These insights could be a turning point for businesses that are aiming to undergo digital transformation. In fact, Forbes goes so far as to say that data is essential to digital transformation.

Why are data and analytics key to digital transformation? ‘Big data’ is an often-used term, but what is it really, and how is big data assisting digital transformation?

Understanding Big Data and How Its Useful

Every business, regardless of size, collects large amounts of data daily. This is usually data about customer interactions or metrics about their services. When the amount of data reaches a certain point, it’s called big data. This data grows exponentially, and the volume is so large that simple algorithms cannot extract meaning from it.

Instead of traditional analytic or management tools, big data analytics requires its own tools to learn, understand, store, and process the data. Once you understand how to use these tools well enough to extract meaning and patterns from your data, it creates a fundamental shift in how you run your business.

Benefits of Big Data Analytics and Its Necessity for Digital Transformation

Knowing how to use all your data unlocks countless benefits for your business, all of which align with the factors that spur digital transformation.

For one, the business decision-making process can be streamlined, simplified, and made much more efficient and quicker by generating actionable dashboards, analytics, and predictive models that learn from previous data and choose the best possible decision for a similar situation. The insights extracted from data should be looked at as newfound knowledge and can be applied to new scenarios. 

Some of the key benefits of Big Data Analytics in digital transformation are as follows:

1. Faster Access to Structured Information

Faster decision-making can become a part of a company culture with Big Data Analytics and a suitable framework to assist management in making these decisions. Big data tools can make operations more efficient by organizing the data in a structured format. Then, analytics may discover hidden patterns from the data to build personalized products and optimize other processes quickly and easily.

2. Reduced Staff Workload

Big Data analytics tools can be used to automate routine tasks and processes, giving employees more time to work on tasks that require more brainpower.

3. More Reliable Information

Businesses operate in high-risk situations, necessitating the use of efficient risk management strategies. Big data is crucial to the development of efficient risk management processes and strategies. The analytics and tools for big data swiftly decrease risks by optimizing complex decisions for unforeseen events and probable dangers.

4. Wider Data Sources

Typically, big data is described by the three Vs.: data with a large variety, increasing volumes, and high velocity. The data may originate from publicly available sources such as websites, social media, the internet, mobile applications, sensors, and other devices. Businesses access such data in order to view consumer information such as purchase history, what they looked for or watched, their likes and hobbies, etc.

5. Information-driven Decision Making

Big data analytics examines data using analytic techniques to obtain and discover information such as hidden patterns, correlations, industry trends, and consumer preferences. As a result, analytics assist organizations in making well-informed decisions that result in efficient operations, satisfied customers, and increased profits.

Data can also be used to understand customer needs like never before. Growing businesses by employing the use of technology is what digital transformation is all about. So how is digital transformation driving customer experience? It’s making it possible to use data to tap into the customers’ psyche and respond to their needs more effectively. This also makes it possible for a business to develop new markets and devise the best marketing strategies for it.

Choosing Digital Transformation

Many business leaders ask how to measure the impact of a digital transformation strategy. Knowing how your business is doing and where it’s headed is crucial. For this, data is once again key.

Infinit-O partners with the world’s fastest-growing technology, finance, and healthcare service companies that want to scale more effectively and advance their brands, providing a strategic advantage. 

Demonstrated by our world-class Net Promoter Score of 71, we deliver the highest quality outsourcing services using our unique data-driven approach – combining powerful technology and high-performance teams within our highly-engaged and agile culture. 

Our expertise includes Customer Experience, Back Office, Sales, Data Science, and Engineering. If your company wants to scale more effectively and advance its brand, contact us now!