Today’s business leaders know that we’re living in the age of data. Companies that can harness and leverage the information generated by their customers and operations are at a substantial advantage in the market. Data, not capital, is the leading source of value in the modern economy.
The value of data, however, remains difficult for some leaders to see. And because it’s technical, it can be hard to discern exactly how to use it.
Data is making its way into all kinds of business activity. On the customer front, it’s helping firms understand the people who buy from them better, including when they’re most likely to purchase, the kind of products and marketing that they like, and what they don’t like about their current experience. Companies can then use all these data to prioritise particular strategies and improve services for their customers.
Data is also vital for improving pricing. The more data a company can collect, the more it can determine how much a particular customer is willing to pay for a product or service. And the more it can do this, the higher markups it can achieve while at the same time generating revenue from lower-paying customers.
As the following infographic shows, the applications of data are tremendous. Data has enormous value to companies across the board, and they need people who can understand and interpret it. Part of the solution will be a greater use of machine learning. But there will always be a role for business analytics.
Infographic by University of Maryland