I am sure you have all heard of the 4 V’s of data:
- Volume - the scale of data
- Velocity – the speed of data
- Veracity – the certainty of data
- Variety – the diversity of data
Lately, we have heard people talk about a 5th “V” – Value – the ability to capture value through insights from the practice of advanced analytics. For many, without this 5th “V” they can’t demonstrate the ROI of their data.
I remember the first time I saw the IDC report about the Data Dividend. In 2014, they stated that the benefits of data-driven decision making would translate to a $1.6 trillion market opportunity over the next 4 years. That stopped me in my tracks – did they say trillion?
Did their prediction come true? Well, depending on what you read or who you are talking with, there are mixed results. However, overall companies that made the right investments and are properly managing the entire data lifecycle are getting that value! Did you see what we did there? That is right, getting the value is possible, but it has to be done properly.
When you think about the full data lifecycle: Create, store, use, share, archive, destroy (and repeat), there is a lot to do that will likely require you to think carefully about investing and managing the right combination of people, processes and technologies.
For many companies that we speak with, this sounds expensive and at times overwhelming, especially for an initiative that may carry a high level of risk. We understand, for most, as your data initiatives mature, your budgets grow. But what is the alternative? We talked to someone once that managed their entire business in Excel. Now, believe us when we say that we love Excel, but is that really the tool for getting insights from your data in a timely manner? Is that the right tool for growing your business and staying competitive? Maybe, but probably not.
So how do you justify your data investments? A quick internet search and you will find a million stories. For example, we found a report from Insights2020 about the importance of delivering a customer-centric experience. They reported in their study that 73% of over-performing customer-centric companies attribute their growth to using data-driven insights to customize their offers. And the growth was significant. These over-performers reported to have 4x the revenue growth of under-performers.
To us this begs the question: can you afford NOT to invest in your data initiatives? If you think that you are ready know, give us a call and we can connect you to one of our data experts who can help you understand what it will take to get you from where you are to where you want to be on your data journey.
If you aren’t quite convinced, you have a few options:
- Do nothing and hope that your competition is doing the same.
- Spend some time doing your own research, see what other companies are doing with their data and determine if it would be beneficial for your organization to do something similar.
- Download our brochure: 8 Awesome Ways Companies are Using Data and learn how 8 organizations from different parts of the world and in a variety of different industries are using data to make better decisions, improve company performance, be more competitive and accelerate growth.