Think of any famous organization you buy products from. Then, think of any information such organization might find valuable. After doing this, you should have come up with at least one type of information such organization values. It is true that famous organizations need more in-depth information or information that is more difficult to find. However, thinking about such information in this simple way helps you consider the value of data from that organization’s perspective. There are various settings and situations where the value of data for business can be appreciated. An organization can have data that is large, complex, collected from experimentation, collected outside the organization, collected inside the organization, collected from naturalistic observation, or with very specific attributes. Regardless of the types of data, a variety of information is always being collected, measured, and used in decision-making.
For many years, organizations used analytics to become more efficient internally in terms of their operational processes and the efficiency of their marketing campaigns. At that time, analytics and data were focused on improving their own businesses. We are now seeing a shift where many organizations are actually monetizing their data and using it to generate a revenue stream. For example, an organization is collecting data initially for an internal purpose, often operational, and is finding other internal ways to make money from that data and make good use of it or ways to partner with other organizations and share it. An important thing in such environments is making sure an organization is sharing information on a level that protects the privacy of customers, that is, at an aggregate level as opposed to a detailed customer by customer level.
Today’s data visualization technologies incorporate a variety of value propositions, enabling organizations to improve their visualizations. For example, using new visualization tools, someone who is giving a preformatted presentation with a set script still has the ability to go off script and immediately show something that someone wants to see. This adds a lot of value and makes a presentation much more effective.
Also, these technologies help organizations focus on progressive decision-making rather than merely reporting historical events. These technologies foster a data-driven organizational culture by making data visualization accessible to everyone. While using data can significantly improve organizational performance across industries and new data visualization technologies make it easier, not all employees at an organization have to become experts in data analysis and management. However, improving employees’ data analysis and data management skills is always helpful for understanding and improving data usage in organizations.
Many organizations across industries are collecting and harnessing the power of their data to improve, for example, decisions related to new product launches, how they advertise, and their recruitment processes. To learn why it is your turn to manage with data, check out our eBook here: Managing with Data: Now It's Your Turn. In this eBook, you will also learn how managing with data can benefit business students, business executives, entrepreneurs, and international business executives.