Data is the new Crude Oil
Data is the new Crude Oil
Data is considered to be the new crude oil. This is because data has to be found, extracted, refined, distributes, and monetized. Data is valuable and its worth runs into millions of dollars. However, it does not serve any useful purpose if it is not processed.
Businesses capture extremely large amounts of data every day just like oil fields that pump out tons and tons of crude oil from the wells. Unfortunately, most of the data remain within silos. Businesses fail to capitalize on the information available to them because of the use of inappropriate and incompetent solutions. This results in missed opportunities.
Crude oil is a dark slimy substance and is practically useless. In the same way, raw data captured by businesses rarely makes sense and cannot be used without processing it. Crude oil is processed to produce usable substances like gasoline and natural gas, among several others. Similarly, data needs to be extensively processed to put it to any kind of use.
When data is processed and charts and graphs are created it becomes easy for policymakers to discern critical market trends. Further, processed data provides better insight into operational metrics and helps them make informed decisions.
What All Can Businesses Do With Processed Data
Processed data is like a goldmine. Reliable and verifiable data helps organizations identify new opportunities. It also enables businesses to work out effective strategies and enjoy a competitive advantage.
Further, access to relevant data and actionable insight allows business leaders to manage a crisis in a better manner. It also enables businesses to improve their sales and productivity, and augment customer satisfaction. As business processes become more and more automated, individual data components can be more effectively incorporated into the workflow.
Why Is It Important to Have High-Quality Data
High-quality data provides more valuable insights into business processes. This provides leverage and makes businesses more profitable. According to an Experian report, the top advantages that the businesses enjoyed because of the use high-quality data are as follows:
63 percent experienced augmentation in efficiency.
53 percent enjoyed improved customer satisfaction.
51 percent benefitted from improvements in decision-making capabilities.
45 percent accrued cost savings
Why Is It Important To Maintain High-Quality Contact Records
Unprocessed data makes a business vulnerable to many security threats and dire consequences. Further, the redundant information provides an unclear picture and leads to wrong decisions. Studies show that the rate of data decay is 2 percent a month. Sirius Decisions, a research firm, estimates that on average companies have up to 25 percent of bad data in their critical systems.
Some of the commonly observed problems due to data inaccuracy are:
Incomplete/missing data – 55 percent
Non-operational information – 45 percent
Redundant data – 43 percent
It is important to get rid of both bad and unprocessed information in order to tap the data goldmine. Just like impurities are removed from crude oil in refineries, data processing solutions convert raw data into useful information. This, in turn, provides businesses with better decision-making capabilities.