The most successful organisations of the 21st century are those that prioritise data. Research conducted by Datacamp showed that 68% of companies without data literacy competencies report greater workflow inefficiency as a result. We also know this because we have been in the game for years and have helped many organisations use data in order to make better business decisions.
Every informed person agrees that data is an invaluable asset. However, to optimise every decision and action with data, you must be familiar with the most important data principles. This is where some people experience major challenges.
To help you build a strong data culture and take better advantage of your big data, we will briefly discuss five essential data principles. These are fundamental truths that can make your life simpler and yield innumerable benefits for your business.
1. Data and metadata are intertwined
You cannot neglect metadata and make efficient use of your data. Metadata describes and gives information about other data, helping you and your team to manage and effectively use your data. It is a shorthand representation that essentially labels and categorises all other data, enabling your business to find, use, and preserve data further down the line. Without it, a lot of your data can become unusable or unmanageable. When you understand the roles of metadata and learn to make proper use of it, you will extract more value from your everyday data.
2. Data use puts on display the ethics of the organisation
The way an organisation uses data demonstrates its values and ethics. Reliable companies make use of reliable data. Those who choose false or poor-quality data will make poor decisions as a result, displaying inadequate ethics and attention to detail. Effective use of high-quality data, therefore, will not only yield quality results but will also promote a strong and reliable culture that reflects the organisation and its leadership.
3. Better decisions are made using quality data
The quality of your data will have a major influence on the quality of the decision you can make with it. This can significantly affect the overall performance of an organisation. If you desire quality outcomes, you must be using high-quality data and you must have the skills to analyse it properly before making any data-driven decisions.
4. Data is an asset that will be used many times
As stated earlier, data is considered a big asset to every organisation. If left unused, it is of little significance and a waste of potential. When you use your data efficiently, it can yield huge benefits, such as:
- It can help you reduce costs through efficiency
- It can help you offer more granular insights to teams and clients
- It can help you align services or products with customer needs
- It can help you improve loyalty in-house and with your clients or customers
- It adds a strong competitive layer to your business
Another important feature of high-quality data is that it can be used in many instances to effect different outcomes.
5. Data is managed with the same considerations as information and records
Business information and records should be considered to be forms of data. Every form of data should be managed with the same considerations as information and records and should also be considered one of the most valuable assets to an organisation. Value your data and manage it properly with comprehensive data management strategies that dictate roles and responsibilities, how data is collected, analysed, used, and stored, etc. Having a clear-cut strategy in place will ensure that your organisation makes the best use of all data available to you.
Data is changing the way organisations and smart business owners make impactful decisions. When data is managed and used properly, it can make all the difference to your outcomes. Considering the five data principles we’ve discussed here will help you make the best use of your data in a way that simplifies life and makes your organisation more productive.
For assistance in aligning your business decisions with the data you have at your disposal, give us a call. We will help your business thrive as a data-driven business.