In business, Datafication refers to a process that aims to transform most aspects of a business into quantifiable data available for being tracked, monitored, and analyzed. Datafication refers to the use of tools and processes to turn an organization into a data-driven enterprise. As per the reports by precedenceresearch.com, the Datafication Market Size by 2032 is going to be USD 1,013.57 Billion.
Introduction
Today, much data is collected at the point of contact with the utilization of technology devices. Besides data such as text, images, and numbers, there is involvement of logins, passwords, interaction times, device activity logs, clicks, and more. Datafication, in this regard, translates human activities into data, repackaged in a form that offers value.
In business, Datafication finds use in converting every activity of a business model into actionable data, and related technologies like artificial intelligence, big data analytics, machine learning, and predictive analytics have boosted its use.
Datafication: A New Business Model?
There’s a requirement to build an analytical culture spread across all aspects of how business is conducted in the digital age. Artificial intelligence and machine learning play an important role in datafication, but there’s a vital role in collecting data from various sources. AI/ML algorithms analyze the collected data to get useful information for decision-making, and it’s essential to have a clear vision and mission statement.
The top benefits of Datafication are as follows:
- Personalized marketing
Datafication leverages real-time customer information to create and send targeted promotional campaigns. A survey conducted by Epsilon revealed that 80% of participants said they prefer to buy from a company that offers personalized experiences. McKinsey’s study also revealed that businesses that ace personalization earn 40% more revenue than average players.
- Boosted efficiency
Analyzing data on equipment, resource allocation, processes, and task completion times allows businesses to identify inefficiencies and areas for improvement.
- Cost reduction
Streamlining operations guarantees cost reduction, and in this regard, it can be stated that Datafication can help you cut costs in other ways, too.
Cornwell Health, a healthcare provider, experienced reduced hospital readmission rates and saved $5 million in just 20 months. Data analysis makes it easier to identify patients who faced barriers to recovery at home.
- Better financial performance
Datafication helps businesses improve their financial performance. Retailers boost sales by analyzing customer purchase history. Also, it is perfect for helping businesses identify transaction fraud.
- Competitive advantage
Datafication allows businesses to make informed decisions, enhance operational efficiency, personalize customer experiences, and gain improved financial performance. That being said, there is clear proof of how Datafication is the key to outperforming your competitors.
Measures to be taken
It is worth noting that Datafication is not just a technological trend. Rather, it serves as a strategic partner to achieve business success. However, it’s vital to gather relevant and accurate data to maximize the value of Datafication. While taking steps toward Datafication, is of utmost necessity to take into consideration robust measures to protect sensitive data.
Any trending technology that benefits a business comes at a cost. Cloud computing eases Datafication for businesses, and there’s never a need to worry about acquiring necessary hardware and software. Software as a service (SaaS) or platform as a service (PaaS) technologies allow businesses to define the goal they want to achieve with the data collected. The proper implementation of Datafication demands a business to ensure that the right technology is used, including mobile devices, voice assistants, wearables, and IoT.
Using appropriate platforms is vital to help extract data that a business needs effectively, as they can also analyze massive amounts of data and produce reports, enhancing decision-making. A centralized repository allows all authorized people in the organization to access the data. Skilled professionals in data management, data infrastructure, and data analytics evaluate and manage the data, and in this regard, it’s worth hiring an in-house team or outsourced.
Final say
Datafication helps businesses improve products and services by using real-time data. And, it will serve as a vital component in collecting customer feedback about the quality of the products and services. Data-driven marketing strategies involve collecting customer insight through various channels, including social media, email, and other digital platforms. That create personalized campaigns for each client and target the right audience persona. Data-driven. A culture ensures your business is able to innovate and adapt better to changing market conditions while putting the business away from the crowd.
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