Data and digital transformation need to work together. Why? And how? Keep on reading to know more.
Data and Digital Transformation
Today, companies collect and use data to make decisions about many aspects. Their customers, employees, products, services, and suppliers. The need for data is vital in making better decisions. This is why it is important to understand the meaning of data and digital transformation.
Data is information that has been captured, processed, and can be used to make decisions. Data collection starts with the customer. It can be the number of customers visiting a store every day. The total transactions are done in an online store. Or the number of people who watch an ad online. When companies collect this data about their customers, it becomes big data.
All this information in big data gives companies valuable insights on how they can improve their products or services to meet their consumer’s needs and wants better. This is what is meant by data and digital transformation.
Data is the fuel of digital transformation. It is what allows companies to make better decisions about their business.
Digital transformation is a new phenomenon that has been growing over the years. It refers to a change in a business’ way of operations through technology or any other innovative means. Also, it makes the company more efficient and competitive in its industry. It gives them a competitive advantage over their competitors.
Digital transformation allows companies to cater to their customers on a grander scale than before by using data collected from them. It also helps companies improve their decision-making process by using data gathered from different sources that they have not used before.
This change in customer experience is what makes companies succeed in their industries and grow more revenue every year. Data and digital transformation are closely linked because without data, there can be no digital transformation.
What Kinds of Data is Crucial?
Yes, data is crucial. But not all data is necessary. In fact, not all data is the same. There are different kinds of data. And they are very important in digital transformation. Without them, companies can’t make better decisions about their businesses.
Data is then categorized into 3 major types:
1. Structural Data. – This kind of data includes information about a person’s name, address, phone number, and more that companies need to have a customer relationship.
2. Semantic Data. – This kind of data includes details on customer preferences and behavior that can help companies understand what their customers need and want from them. It also helps companies know more about their customers’ demographics so they can better tailor their products or services to them.
3. Behavioural Data. – This kind of data refers to the activity done by a customer online. It includes how often they interact with a company’s website or app as well as how far they go into a company’s website or app.
Behavioral data is crucial for digital transformation. Because it allows companies to collect information on customers’ needs and wants from different sources such as:
- social media channels
- social media ads
- referrals from other customers
- and more