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Data is the fuel in the digital economy. A palette of data assets aggregated from a variety of sources and sensors. Today a typical business interprets less than 1% of their collected data. Digital businesses but emphasis on exploiting these assets as far as possible. Turning collected data and associated algorithms into a strategic business asset.
Customer insights – structure unstructured assets
The task of understanding customers is both large and complex. Every interaction represents an opportunity to add details and nuances to your understanding. Adding structure to insights increase the possibilities to make meaningful conclusions. An essential tool in supporting your portfolio and product line management functions. And to increase sales knowledge sharing in early stages of new businesses.
Data from digital discovery/decision journeys
Digital businesses guide their customers along digital discovery journeys. Along the marketing road from initial interest towards a decision to buy. With valuable customer data to extract in each step of the interaction. To understand which type of content your customers engage with best in each step. How effective a content asset is in attracting your customer to move to the next step. Customer insights on how your customer buys will differentiate you from competitors. Competitors focusing on what customers buy.
Data from your products in use
Smart Connected Products, allow vendors to track how their offerings when used. A pure software or software enabled physical product collect data whenever used. Data captured in a cloud based “digital twin” to the actual product. Allowing vendors to “see” product use in real-time. And how products behave while used. Data creating a solid foundation for product evolution priorities. The second big value is the transformation of life cycle services. Moving from predicted to actual maintenance needs.
Algorithms making sense of it all
Identifying and collecting relevant data is the easier part. Your real market differentiatior is your algorithms. Enabling you to turn raw data into actionable insights. The data amounts collected are large and detailed. To secure a fine granularity in your customer understanding. Evolving data algorithms is the number one priority for digital business giants today.
You are not alone in need for advanced algorithm development. Expect talent in this field to be scarce, expensive with strong global competition. A field deserving high attention on your agenda.
Transition to data driven decisions
Digital businesses operate with a high degree of data driven decisions. Where the data as basis for decisions is so precise enough to automate parts of the decision process. Aspire to make your data and algorithms ready for leveraging artificial intelligence. Automating parts of your daily management decisions. Especially when it comes to your sales, supply and support chains. Operating with high demand fluctuation and customization needs.
Automate north-south bound data flows
Resources and time for your data and algorithm development need room to grow. A space likely coming from automating existing report flows. Where information from your business processes travel in the north-south management flows. Automating these flows allow you to move focus. Towards the creativity required in east-west customer value adding flows. The latter being the battle ground forfor digital businesses.
Questions to ask yourself
- What are our business-critical data assets – already captured and well-structured.
- Which new data assets no we need to start to capture – to better understand our customer.
- Which are our most valuable business algorithms – found in customer value flows
- How do we attract data scientists to our business – a critical talent group.
- What can we automate – to free up time and resources for algorithm development.
- What are our low hanging fruits – not all business structure customer input well.
Additional reading suggestions
- Three keys to building a data driven strategy [ARTICLE] – by McKinsey
- Treating data as a company asset [SLIDE DECK] – by Businessdataleadership
- What’s your data strategy? [ARTICLE] – by Harvard Business Review
- Capturing the right customer insights [BLOGPOST] – by Brainmates
- Why company data assets are critical to business [BLOGPOST] – by TCC Technology
- Algorithms take digital business to the next level [RESEARXCH REPORT] – by Gartner
- The future of the algorithm economy, and its benefits for technology companies [BLOGPOST] – by Yalantis
- Project Seymour uses AI to help you understand your digital business [BLOGPOST] – by New Relic