Almost everything is connected by data in this world. And how we have to come to understand data and automate it is by using analytics and artificial intelligence. Organizations have to continuously think about how to stay relevant in the digital world and its digital economy, and also how to make digital transformations within their operations advantageous to their 21st-century businesses.
Statista has predicted that in 2020, about US$1.3 trillion will be spent on digital transformations globally, which is believed to be caused by the pandemic. SmartInsights have noted that around 66% of businesses have a digital transformation process, start a digital transformation program, or are planning to introduce it, meaning implementing this change of businesses’ operations is flourishing.
Now that the world has gone through multiple lockdowns due to COVID-19, many companies have been affected; however, those that take smart technology into their systems will thrive at times like this. Even without the pandemic, organizations that adopt those advanced technologies will lead the AI-powered economy.
Naturally, some data-driven businesses will use big data for marketing campaigns, decision-making, and process optimization.
For a bit more detail:
- Marketing campaigns:
According to Smartinvestor, 41% of organizations improve their marketing efforts by using big data as it helps them quickly identify their customer’s purchasing behaviors and engagement patterns, consequently receiving better score leads and locating customers who are valuable to their business.
Businesses will always face risk-based decision-making situations, but with big data, they are able to identify high risks by modeling prospective scenarios, resulting in better decision-making.
- Process management:
Randy Bean from Harvard Business Review has collected that out of Fortune 1000 companies’ reports from executives, 49.2% have observed development in their business processes and a reduction of their expenses on account of big data analysis.
Advantages of Data-Driven Businesses
Of course, you would want to know the advantages of using smart technology that has brought the connection of data-driven businesses and their customers or users. So here are a couple of benefits:
- You will gain a competitive edge:
According to Paldesk, the competitive edge is referred to as the ‘capacity a company has to produce any good or service more efficiently than its competitors’, which Artificial Intelligence (AI) can easily do with its automated services.
What are the competitive advantages? Or the possible results of this?
Artificial Intelligence (AI) can generate new and original content, attracting more traffic to your sites from collecting raw data.
By gathering data, analyzing them, and selecting relevant content, it is able to offer personalized content for your consumers or users.
A cognitive-capable software, built by Artificial Intelligence (AI) technologies, can understand multiple languages, reaching a broad diversity of customers’ needs, giving customers a communication platform that provides voice and text services, improving decision-making processes.
Businesses can attend to customer’s needs by offering solutions in advance with the help of predictive analysis, using historical data and algorithms to produce these solutions.
- Improve customers’ experiences:
With data analytics and Artificial Intelligence (AI) gathering historical and behavioral data, insights into the individual’s experience will be created, giving organizations a better understanding of their consumer’s needs and desires. As mentioned previously, relevant content and products are then suggested based on their interests, improving the consumer’s experiences, and increasing the number of sales.
- Optimize your sales:
Artificial Intelligence (AI) can create predictive models that provide insights into new sales opportunities and predictive sales analytics that can improve sales with accuracy.
MarketingAIInstitute has listed four areas of sales that Artificial Intelligence (AI) and predictive analysis has been highly useful for increasing sales:
- Accurate Lead Scoring
- Sales Prospects
- Reducing churn
- Sales Management
- Driving decision-making:
With the help of analyzing data with analytics and augmenting human intelligence with Artificial Intelligence (AI), it eliminates the number of human errors, resulting in a decreasing number of wrong decisions. For example:
Understanding your consumer’s needs and selecting the right products for them, alongside acknowledging their constant change in behavior, is essential to make the right marketing decision. From real-time data, trend analysis, and forecasting, Artificial Intelligence (AI) models will predict the consumer’s behavior in hopes of improving marketing decisions. With the application of technology, businesses will speed up their decision-making and be informed of the right choices effectively.
- Innovate with technology:
Innovating is essential to a business’s success; luckily, the technology we have currently can aid your product development. Data analytics will be in every stage of your innovation process; for instance, it will identify the performance gaps, approach that problem, and help you with innovative solutions to overcome it. It also predicts the profitability of your innovations and the possibility of further development with new features. Analytics will help even after the completion of the product, evaluating the product’s success.
Artificial Intelligence (AI) also plays a role in driving human innovation, but how?
Forbes had listed three ways that it does, such as Artificial Intelligence (AI) overtaking man’s manual labor that does not require many skills. Humans are then free from menial work, increasing their productivity in the time that they can be more innovative. Another would be that Artificial Intelligence (AI) algorithms help generate creative designs for people, according to the criteria given, thus increasing human creativity. And lastly, ‘democratizing creativity’, allowing access to human best practices to anyone.
Now that you have gotten insights into the advantages of building a data-driven business, the next step is to identify your organization’s data maturity level and develop data-driven strategies. Luckily, the Center for Applied Data Science (CADS) is here to help you to sort that out with a data maturity roadmap.
And how can the Center for Applied Data Science (CADS) help your business?
- Helps build the AI that works best for your company
- Work smarter to be competitive in productivity, as well as generating insights and sustainable results
- Make your company workforce future-proof
- Utilize technologies to break down silos and enable communities
If you are a leader of a company that wants to emphasize data strategies, ask yourself these questions for your data journey:
- Do I have a data strategy in place to drive digital transformation?
- Do I have the Talent and Skills to implement the solution?
- How will a data-driven strategy support my business within the next 5-10 years?
- Will this great solution work with what I already have?
- What is my success roadmap?
Once you realize that data is connected to everyone, you will understand the importance of obtaining the technology behind it. Everyone will have to face this revolution of technology advancement either now or later, and you best be ready for the upcoming data hurdles in the future.
So, ready to start your data-driven business?