A modern technical trend called “datafication” tries to convert the majority of a company’s operations into measurable data that can be recorded, monitored, and evaluated. It refers to the application of methods and technologies to transform a company into a data-driven firm.
The process of turning people, things, and activities into digital data is known as datafication. Many academics contend that datafication is intensifying as more aspects of social life take place in digital environments, which is related to the expansion of digital technology, digitalization, and big data. Datafication transforms a wide range of information into measurable, machine-readable data for aggregation and analysis. Another name for this concept is “datafication,” which refers to the idea that everything in the world may be viewed as a source of data that can be “mined” for correlations or sold in order to learn more about social problems and human behaviour. This phrase is frequently used by academics who want to challenge such logics and procedures.
Why Is Datafication Important?
Only if they use datafication can organisations stay abreast of new technological developments. Across all industries, businesses may use datafy to enhance many of their crucial procedures. Optimization is immediately possible once these processes are quantifiable.
Businesses may enhance operations to boost productivity and boost income thanks to datafication. At the micro level, it can assist businesses in carrying out routine operations while maximising resources. Overall, it can simplify current procedures, preserving users’ competitiveness.
Data storage for future use is akin to the idea of “black data,” which refers to information that has previously been disregarded due to technological constraints. The information that businesses gather, process, and retain during routine business operations but typically do not use for other purposes is referred to by Gartner as “black data” (for example, analytics, business relationships and direct monetization). The vast bulk of a company’s data assets typically consist of this underused, “black data.” Therefore, businesses must be careful about the data they store. Data storage and security can frequently cost more money (and carry higher risk) than they are worth.
What is the importance of datafication in a business organisation?
Datafication helps businesses improve their products and services by using real-time data. Plus, it is an important component in collecting customer feedback about the quality of the products and services offered by any company.
Take data-driven marketing strategies for instance. As one of the most important aspects of digital marketing, this process involves collecting customer insight through various channels such as social media, email and other digital platforms. The information can be used to create personalised campaigns for each client and targeting the right audience persona.
Examples of Datafication
Netflix : With over 33 million streaming subscribers and operations in over 40 countries, Netflix is a supplier of on-demand Internet streaming media. In the past, its operation was more physically focused, with DVD and Blu-ray disc rentals being its primary business. According to Netflix’s business model, subscribers build and manage a queue (or sorted list) of the media items they want to rent.
With the use of Netflix’s current streaming technology, they are able to collect information about what customers have seen in the past to forecast what they will watch in the future and to propose shows that have been specifically chosen for them. Netflix can keep their material current and relevant to what consumers want to see by gathering information about the most popular shows and movies, who is watching them, and other information using large amounts of data.
Vinted : The tech-fashion firm Vinted made the decision to use advertising data to personalise its initial consumer onboarding process. The business monitors the effectiveness of each shown ad creative from a variety of advertising sources. Vinted was able to pull the shown ad creative and dynamically construct the onboarding process when the consumer launched the app for the first time by funnelling data, such as the product image and message presented, to the customer. Vinted was able to boost conversion rates and user engagement right away by giving new users a more contextually relevant in-app experience.
Human Resource Management : Businesses can collect information from mobile devices, social media, and applications to find new employees and assess their personality traits and risk-taking tendencies. Datafication can assess analytical thinking to determine whether candidates match the company culture and roles they are applying for instead of requiring them to complete personality tests.
Customer Relationship Management :
Businesses that leverage customer data gain advantages by adopting datafication techniques and technologies to comprehend their customers. They are able to create suitable triggers that are pertinent to the personalities and purchasing habits of their target audiences.
Datafication enables businesses to collect information based on the voice and words that potential clients use in conversations, emails, and social media.
Commercial Real Estate : To acquire comprehensive insights into numerous areas, real estate organisations should leverage datafication technologies and techniques. As a result, they will be able to determine whether the property they are considering is suitable for a customer looking to establish a successful business.
Financial Service Provision : Insurance companies use datafication to update their business models and comprehend a person’s risk profile. It can also be used by the banking sector to forecast a person’s capacity to repay a loan or mortgage. Given the current state of affairs, datafication is obviously more than simply a passing fad. It is transforming the commercial environment.
Insurance and banking.: In these fields, datafication enables a thorough assessment of a person’s risk profile and borrower reliability.
Smart cities : Transportation, waste management, logistics, and the energy industry are just a few of the industries that can make use of the data gathered by smart city technologies. Real-time datafication may also give groups more in-depth understandings of environmental legislation, pollution levels, and water quality.
Datafication: a new business model?
We’re talking about fostering an analytical culture that permeates every facet of modern corporate operations. Datafication involves both artificial intelligence and machine learning, but the first phase entails gathering data from multiple sources.
The obtained data will next be analyzed by AI/ML algorithms to produce helpful information for decision-making. Possessing a distinct vision and mission statement is crucial.
No matter how accurate the data is, you cannot do anything if you don’t know your company aim. And the reason for this is that data can only be valued in a reasonable context.
But why do so many IT departments still manage their own servers, when you give it some thought? After all, maintaining and purchasing them both costs money. Why would you want to pay for something that you could just as easily use in the cloud if you don’t have any unique requirements?
The majority of organizations don’t truly know what they need from IaaS, is the common response. There are additional factors than saving money that they might be considering.
For instance, some businesses might not want to cede control of their data or apps. Additionally, they could feel more secure with their own hardware (in this case, something more sophisticated). And given the sensitive data that many organisations gather, this is frequently a preventative action that makes room for investments in secret computing organizations.
Companies are experimenting with infusing customer-sourced data into apps to contexcontextualizetualise the user experience. Only the first step was effective targeting. Now that we’re in a new era, marketers can move massive amounts of data around to foster innovation and con-contextualize textualise customer conversations.
How well organorganizationsisations use their customer data will differentiate them in terms of marketing effectiveness in the future. Now is the perfect time to start connecting your client data if you haven’t previously. These steps can help you tailor your offer and build a better future for both your business and your clients.
Everything around us is becoming into data, from sports to economics to entertainment to healthcare. For instance, every time we use the phone, send an SMS, tweet, send an email, use Facebook, watch a movie, use an ATM, use a credit card, or even just pass by a surveillance camera, we create data. Digitalization is not the same as the idea. In reality, datafication goes far beyond digitization. This enormous volume of data contains details about our identities and behaviours.
We are now able to understand the world in a level that has never been done before thanks to datafication. To acquire, store, process, and visualize that data, new technologies are now readily available. They are being used by businesses to their advantage. For instance, marketers aanalyzenalyse data from Twitter and Facebook to ascertain and forecast sales. Businesses of all shapes and sizes have begun to unionise the significant advantages of data and related analytics. They are beginning to improve their capabilities to collect and analyze data. Bernard Marr provides an illustration for us to comprehend how corporations use data.
Until recently, all that existed in terms of data was paper documents or bits on floppy discs. In the modern world, we have access to a virtually limitless amount of data about people, places, things, services, and events. The market for big data and business analytics (BDA) now has more justifications for investment thanks to this abundance.
The fact that BDA reached USD $168.8 billion in 2018 and is now providing a forecast to expand to USD $274.3 billion by 2022 is not surprising.
1 thought on “What is Datafication?”
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