Importance of Data in Today's World
Govinda Kumar Singh
Jun 08, 2024 - 15:52
Before talking about importance of data let's understand what data is?
Data is a collection of raw, unorganized facts, and details like text , observation, figures, symbols, and description of things etc.
Data have not it's meaning , it does not carry any specific purpose and has no significance by itself.
Data can be recorded and doesn't have any meaning unless processed.
When we processed it become meaningful.
Now let's talk about it's importance. Here we mainly focuses on businesses aspects.
“Data is the new oil. It’s valuable, but if unrefined it cannot really be used. It has to be changed into gas, plastic, chemicals, etc. to create a valuable entity that drives profitable activity; so data must be broken down, analyzed for it to have value.” –Clive Humby , 2006
There were times when oil was the world’s most valuable resource. During the 18th century, the oil companies ruled the markets globally. But, with time, the world kept on developing and progressing.
As oil is important to the industrial economy, data is important to the digital economy. And the expansion of the digital economy has made data the most valuable resource of the century.
Data has become the most valuable business asset for companies across the globe. Top companies like Apple, Amazon, Facebook, Microsoft and Alphabet , are all data-driven. They have made proper use of data and have become leading companies in the international market. The huge amount of data controlled by these mega companies is bigger than most of the companies themselves.
Businesses are realizing that having knowledge about profits, losses or total revenue is not enough to make business decisions. We must have real time access to important data of our business.
If businesses have proper data related to customers, businesses can make proper decisions about expansion of business or introducing any new goods or services.
Let's see how data is useful for companies-
1. Data informs decision making
2. Data helps businesses understand their customers
3. Data improves marketing strategies
4. Data increases efficiency and productivity
5. Data helps businesses stay competitive
Today’s digital era, data has become the fuel that drives successful businesses.
let's seen an example of Amazon how amazon uses customer data for making better decisions
On the most basic level, Amazon collects a user’s name, location, payment information and the products they purchase. It also remembers click history, including what someone looked at, how long they looked at it and if they bought it.
Amazon collects recordings of what users say to Alexa, what consumers watch on Prime Video.
When we rates a product or posts a review, Amazon collects that information.
Amazon can access contact lists, photos, Wi-Fi credentials and credit history, according to the company’s privacy policy. When a user rates a product or posts a review, Amazon collects that information.
By collecting these data , It uses data to improve its own services and products and take decisions in efficient manner.
Amazon directly provides data to it's vendor , Data provided by amazon is very helpful of it's vendors because it can help vendors to identify what types of customers are responding to what types of products, so you can figure out where they should focus their production efforts, how to price products, and how much to keep in stock.
Remember data is very useful in other fields also , Here we only talking about business aspect.
Thankyou.
Very good 👍
Absolutely agree! It is vital for today's progress and Innovation