While it’s very impressive that today’s technology allows us to gather incredible amounts of data, the reality is much of the data is currently collected before anyone answers: “What do we want to do with this data?” The result: Your organization has a lot of data that isn’t very useful for business.
Before rushing to start collecting data, every business should begin by developing a data strategy. If you already have a ton of data, but no data strategy, it’s time to pause and develop one. Your team needs to determine what you want to achieve and then collect the data that will help you answer business questions, improve operations, and create new streams of revenue.
There are numerous ways data can influence your business success, but for the most part businesses use data in these three ways:
– Inform and improve decision-making
– Revamp and refine operations
– Create new streams of revenue
Most companies start by using data to improve decision-making, because it’s quite challenging and resource intense to simultaneously juggle all three categories at the same time.
Regardless of where your company is in terms of data collection, be sure that you have a proper data strategy in place. Today, every business is a data business and it is imperative to understand how you will use the data you collect to improve your business decision-making, operations, and revenue streams.
This article originally appeared in data-informed.com. To read the full article, click here.