Factors to Help You Evaluate Whether You’re Gathering the Right Data
In a study conducted by Cio Insight, 56% of businesses will be allocating higher investments in big data over the next three years, and a significant increase will likely follow after that. And in the same study, 53% said that their organisation is facing a rise in competition from data enabled start-ups which tells us one thing. The demand for data is skyrocketing.
But what is data and how we know it’s the right one for our organisation?
Data is a series of information used by companies to come up with a breakthrough or make an informed decision that is beneficial to the entire organisation. And you know you got the right data when it has the following:
Evaluating the reliability of the data requires a meticulous examination of the percentages that have value. Using research and comparison, what is 80% to one study may only be 40% to another, and may require more information unto which is which.
It is also important to know where you’re getting your data from. Huge companies like banks or insurances are likely to have reliable data because customers are required to fill-up to avail its services. Small businesses like retail rely mainly on customer loyalty cards to obtain information.
The acquired data has to go through thorough examination to explicitly define its purpose. To make your acquired data relevant, you must consult the analytics team of your organization unearth the problems which could would require the use of certain data.
There are many approaches in rating the relevance of data acquired according to the organisation’s objectives.
- The Variable Method – uses numbers such as 0 – 1 to apply value in a data
- The Statistical Method – uses other existing data to correlate with the newly obtained data
A commonly used method is a combination of both to assure the relevance of data in accord with the organisation’s needs.
The data you acquire should be based on what your organization needs. Whether it is descriptive, predictive or prescription data, it’s not as valuable to you if you have nowhere to apply it.
Would data about the statistics on heart disease be considered useful to Gucci? Of course not.
If the data can be foreseen as relevant to future risks that the organisation might come across, then it’s considered a good data.
Data that requires more extensive research may be more expensive that data that is plainly collected. Factors like internal and external cost are few of the things data as a service (DaaS) providers consider.
- Internal Cost: technology, infrastructure, etc.
- External Cost: subscriptions, maintenance fees, etc.
Like all assets that have value, data collected should be in accordance with the organisation’s financial capability.
Data is the next big thing for future industries. In the same research mentioned, over 75% declared that their company is restructuring towards the incorporation of data-based strategies to acquire more opportunities. Which only proves that data and analytics have “become a key competitive weapon” in the business industry as per Carrie Johnson, Sr VP of Forrester Research.