Business data is information that you can utilize to plan and operate an enterprise or organization. From source data that a business collects to processed data such as calculated metrics and forecasts, business data plays a significant role in the decision-making process of enterprises.
How? You may ask
Well, using business data to make high-value decisions is a relatively recent phenomenon. For years before, entrepreneurs and business people relied on their instincts or the meager information available to them to make decisions.
But business data has changed the face of decision-making. Let’s see how.
Business innovation has quickly advanced over the last few years. Sales assistants, at this point, don't store their contacts in a Rolodex (the traditional physical file device that was used to store business contacts). They utilize a CRM system instead.
What's more, retail businesses have traded their conventional cash registers with digital point-of-sale systems (POS systems).
In other words, this means that managers can now practically oversee almost any business cycle via software, mobile applications, or other similar technology. It’s a massive deal in the business world!
Such innovation has had numerous advantages, including the ability to capture business information. This data can be deconstructed and analyzed to reveal enlightening insights that organizations can use to approve choices and improve tasks.
Moreover, current organizations have access to so much information that making a decision based on instincts isn't even in question anymore. Just like a science experience, an idea must be verified with the correct measurements before it's executed.
With the discussion of business data comes another term that you may have heard of a lot - “big data.”
So, what is big data, and how is it different from business data?
Well, all it means is a lot of business data.
And many organizations need a tremendous amount of storage to hold so much information. For instance, Amazon processes nearly 35 transactions per second, which amounts to a vast sea of data that they must sort and manage regularly!
But despite the popularity of the term, most enterprises don’t have “big data.” You could have great statistics and other information at your disposal which can help you progress further in your business and make informed sales and marketing decisions.
Now that we’ve learned all about what business data is, you’re probably anxious to find out more about how to best utilize such information for your own company.
Well, we have you covered!
Here are three primary ways you can take advantage of business data:
According to a study by Bain & Company that researched nearly 400 organizations, firms with advanced data analytics capabilities were five times as likely to make decisions faster than market competitors.
So, improving how you make decisions and making informed and intelligent ones is one of the first ways you should take advantage of business data.
There’s an exceeding opportunity for firms to use data to optimize their operation management and also other daily business processes. Virtually, any business process that creates data can be refined based on the insights the data may provide.
For example, service-based businesses that operate with the aid of a fleet of vehicles equipped with GPS devices can all be connected to give unique data insight via real-time monitoring.
Finally, generating business data for your firm can also open up new revenue opportunities for you.
The more compelling your data is, the more valuable it can become as a business asset. In reality, stocks in many firms are even bought and sold based on the data they have!
But even if your company is not looking to be acquired, your data could still be worth a lot of money. For instance, is there a secondary market for the business data you’ve generated?
Companies such as Fitbit have become data merchants. Fitbit collects big data related to fitness habits and health stats - and then sells it to strategic partners. You could do the same and create a new stream of revenue for your firm!
Overall, business data can’t be disregarded when making high-value decisions and plays a crucial role in helping entrepreneurs and managers move forward with their projects. The advancement of technology has allowed us to access more and more information in new ways, which has created business opportunities like never before.
By utilizing business data intelligently, you can create new income streams for your organization and improve your teams’ decision-making process.