Digital Transformation: why be a data company
The digital transformation we are experiencing has provided the possibility of creating new business models.
Developments that until recently seemed well consolidated are now modifying their performance in the market through data science.
This is the motto of the article you started reading.
Continue here to understand the importance of thinking about a digital business model. And see how to use the data that already exists within your company to create innovative business models!
The Digital Revolution
Let’s start by contextualizing the Digital Revolution, a term we are hearing more often lately. It refers to the rapid leap in information technology, from analog to digital.
An interesting way to visualize this movement in practice is to see how communication habits have been digitized in recent years. As of 2010, mobile communication, via the internet, reached 70% of the world population.
With new devices constantly coming to market, and the innovation that arouses consumer interest, the use of digital technology has become as common as driving or using a car.
This revolution has also hit the corporate world – indeed, at this point in the championship, it is hard to say whether companies have joined or boosted digital technology in society as a whole, but that does not matter.
What you really need to know is that no business can afford not to have a strategy to take advantage of the digital revolution.
Digital Transformation and the new business data models
Within the digital revolution, an interesting phenomenon is carried out by the companies: The Digital Transformation.
We say that a company is in digital transformation when it implements processes of exploration of digital technologies to make adjustments in its operation, to make the business more strategic, among other purposes.
It is also correct to say that many companies live this transformation unconsciously, that is, without a well-defined strategy. This is what we can call unstructured digital transformation – it does not permeate all spheres of the company and is not a project linked to strategic objectives.
The organizations where digital transformation is thought and follows well-defined guidelines are usually those where digital resources are employed to create new business models.
One thing is a traditional enterprise adhere to systems and applications to streamline their processes. Another is to employ these digital resources to innovate and generate even more market value.
The value of data in a changing digital world
Now, we cannot talk about revolution and digital transformation without understanding the value of the data. In this new world, they take up an asset position and therefore can be employed to generate business value.
Nowadays, a company that has already taken on digital transformation as a strategy manages to understand and analyze market trends with the help of Big Data services and tools.
Take, for example, customer buying patterns. By understanding it, a business can anticipate the demands. In this way, the most sought after products are available, which positively impacts customer service.
Big data is the perfect tool to get a view of your customers. It can foresee your needs in advance and therefore provides better results in customer service. User problems can be minimized and solved on time. Any negative feedback on your social media or site channels can be detected and the tools ask you to take immediate action.
Good data analysis management, which involves Big Data, Business Intelligence, Analytics and other platforms, has helped many companies to make their processes more automated and practical, save money, boost productivity, and so on.
Let’s take a practical example. US Cellular, a US-based smartphone company, has managed to get 23% more visitors to its e-commerce with predictive analytics of large volumes of data. That is, it used techniques of data mining, modeling, machine learning and artificial intelligence to have an in-depth analysis with a view to the future.
Previously, the company was not sure if it would be able to improve the results of the physical store just by boosting its shares online.
It found, for example, that for the Internet user, interacting with recent offers was more important than knowing the specifications of the products. By improving the layout of promotions and new launches, the company increased online traffic as well as conversion into sales.
Why be a data-driven company
The best of scenarios for anyone who wants to take advantage of the digital age and transform their business is to make data-driven management.
But what is that? Data-driven management can be described as the practice of using data in a variety of business processes in a systematic and continuous way.
Data-driven companies establish processes and operations to facilitate the acquisition of information required by employees, but are also transparent about access restrictions and governance methods.
Here’s a breakdown of the key benefits of being a data-driven company.
A recent report by the Economist Intelligence Unit (EIU), based on a survey of more than 500 senior executives, mostly at C level, indicates that companies that make data-based decisions tend to do better financially.
A similar study by Harvard Business Review found that data-driven companies not only make better decisions and potentiate gains, but also become faster and more productive.
More innovation capabilities
Business models in which data are important assets, and even used to generate products and services, also tend to be more innovative.
This is what makes startups so disruptive; and this potential can also be better exploited by traditional companies in the most varied segments of the market.
Better ability to predict the future
Capturing, analyzing and monitoring information such as sales data, industry trends, news and social media activities also help in strategic planning, in the medium and long term.
In addition to the predictive analytics that can be done continuously with specialized tools, the analytical capacity of business executives also helps them visualize how their decisions will impact the future. This strengthens competitiveness at a much higher level.
How to Build a Digital DNA in Your Business
Here are some tips to build a Digital DNA in your company, that is, put it on the crest of the digital transformation wave with awareness and for tangible results.
Invest in talent
Finding, developing, and retaining talent is a significant challenge that can hinder the success of digital strategies.
From small startups to multinational corporations, organizations must be prepared to adapt in order to create an environment that continually attracts and engages digital talent.
Invest in tools
However, the best staff is not enough if people do not have digital software, applications and equipment.
The good news is that it is getting cheaper to buy digital solutions. It is also much faster to implement and use them effectively. With cloud computing, for example, most technology resources can be acquired and used virtually, without the need to make deep changes in the internal IT infrastructure.
Seek expert help
Finally, practical advice: Seek expert help to turn a new leaf and transform your business digitally.
The outside look of a consulting firm, for example, can help your business locate and seize opportunities that are not visible to the naked eye. Opt for partnerships with companies focused on innovation and digital transformation. The expertise brought by these organizations will most certainly be a game changer in your business.