Ways Datafication is Transforming Different Businesses – Technologist

The extensive influence of datafication is reshaping industries across the globe in the world of ever evolving world. Data has emerged as the newly established currency in the digital age, which makes it imperative for businesses. Further, datafication goes beyond data collection and analysis and involves converting insights into tangible business value for better outcomes. In light of the swift expansion in the speed and volume of global data generation, any forward-thinking business must comprehend the significance of datafication and its practical applications. This blog post will explore how datafication can transform your businesses differently.

What is Datafication?

Datafication involves collecting, analyzing, and converting diverse elements within business operations and customer interactions into data. It entails transforming information traditionally in non-digital formats into analyzeable and measurable data points. This process converts visible and invisible facets of a business into actionable and valuable insights. These pieces of data have the potential to address numerous queries that provide insights into the optimal strategies for a company’s actions in terms of location and timing. They are crucial in confirming the sustainability and success of businesses across multiple industries. 

Essential Steps of Datafication

The Insights to Impact study reveals that although numerous companies gain insights from data, most encounter challenges translating these insights into meaningful outcomes. This study highlights that top-performing companies distinguish themselves through a systematic approach to datafication. In essence, these companies adhere to the following three steps:

• You must recognize domains where the application of data-driven approaches can generate value (optimizing inventory management and improving employee performance).
• Identify the essential steps to achieve this value (hiring data scientists or investing in data-capturing tools).
• This is also necessary for you to use factual information to make informed investment choices (effort, time, and money).

How Datafication is Transforming Different Businesses

Datafication is the initial stage leading to the adoption of big data analytics. Examining renowned global entities like Amazon and Netflix reveals that big data analytics significantly contributes to their remarkable success. Large and small enterprises have recently started emulating their approach by increasingly gravitating towards extensive data services. Therefore, any business aspiring to leverage the advantages of big data must wholeheartedly embrace datafication to recognize its transformative potential for organizations in various aspects:

Monitor and Analyze Your Data

You should consistently monitor the progress, analyze your data, and closely oversee how your organization generates, utilizes, manages, and accesses information. Extract meaningful insights from this data to improve your organization and services. While datafication may appear daunting and needs to be more quick and straightforward, it is a vital set of activities applicable across various industries. Numerous experts are available to support your endeavours by providing guidance and taking on essential tasks, thereby alleviating some of the workloads.

Encouraging Digitalization

Digital transformation is not just a fleeting trend because it is progressively becoming indispensable for all companies striving to navigate the modern landscape and stay pertinent in today’s world. The utilization of technology is only fruitful when accompanied by actionable data. Datafication serves as the key to upgrading your technological and strategic approaches. Once you grasp your current position, you can initiate the essential measures to progress and flourish through innovation.

Innovate and Upscale

In this dynamic world, keeping pace with the latest trends presents a constant challenge. Imagine foreseeing that the upcoming major trend in the market is artificial intelligence (AI). Armed with this foresight, you can strategically navigate these market shifts. You would evaluate the potential risks of AI adoption, such as security concerns, and devise risk management strategies. Utilizing datafication can give your business a competitive edge in responding to market dynamics and changing consumer preferences. 

Create a Centralized Repository

Nearly every organization embarking on a substantial data-driven initiative will require a centralized repository, such as an Enterprise Resource Planning (ERP) system. This repository serves as a storage platform and plays a crucial role in producing valuable analytics and reports, facilitating efficient tracking of organizational efforts. Moreover, it ensures accessibility for all users, with the option to restrict permissions, enabling individuals to find the necessary tools to engage in data-driven activities quickly.

Evaluate Your Current Process

Start by thoroughly analyzing the various aspects and tools within your organization. Remember that datafication extends beyond just technology and encompasses diverse processes and procedures. Evaluate elements such as your business workflows, the methods and locations for storing information, and other relevant components. Take a comprehensive approach, considering individual departments and viewing your organization as a unified entity. At this initial stage, establish clear goals for your datafication initiative, reflecting on your objectives.

Cost Reduction

Streamlining operations naturally reduces costs, and datafication offers additional avenues for cutting expenses. For instance, Corewell Health, a healthcare provider, utilized datafication to decrease hospital readmission rates, resulting in a savings of $5 million within 20 months. Through data analysis, Corewell Health identified patients facing recovery challenges at home, such as a lack of nutritious meals, which reduced hospital readmission rates and a remarkable $5 million in savings within just 20 months. Beyond healthcare, datafication proves beneficial for companies relying on equipment, allowing them to implement preventive measures and lower operational costs.

Monetization of Data Assets

In addition to using operational efficiencies and improving customer experiences, datafication also provides possibilities for companies to monetize their data assets. By aggregating and anonymizing data, companies can create new sales streams through the sale of data insights, analytics offerings, or data-powered products. Moreover, records partnerships and collaborations allow companies to use external data resources to boost their services and create additional value for customers.

To Wrap Up

The transformative impact of datafication on diverse businesses is undeniable. As data continues to be the driving force behind digital evolution, companies must recognize and embrace the potential of datafication for sustainable growth. From understanding customer behaviour and fostering continuous improvement to making informed decisions and gaining a competitive advantage, datafication reshapes how organizations operate. As we stand on the brink of an era dominated by data, those who adeptly leverage datafication will undoubtedly position themselves as leaders in their respective industries to pave the way for sustained success and resilience in an ever-changing business landscape.