How Can Datafication Help You?
What is datafication? The word “datafication” truly has no definition and cannot be found in the dictionary. Still, it’s a word we often hear these days. It means everything from our actions to our thoughts can be transformed into numerically quantified forms or “data”. From sports to finance, entertainment to healthcare, everything around us is transformed into data. For example, you can make phone calls, send text messages, tweet, send emails, use Facebook, watch videos, withdraw money from ATMs, use credit cards, etc. You create data every time you pass by a security camera.
This term is different from digitization. Digitization is much broader than datafication. This astronomical amount of data contains information about our identity and behavior. Datafication helps us understand the world in ways never before possible. New technology is now available to capture, store, process, and visualize this data.
Organizations manipulate the data to increase profits. For example, marketers analyze Facebook and Twitter data to identify and forecast sales. Companies of all industries and sizes are beginning to realize the great benefits of data and its analysis. As a result, most of them are in the midst of improving their data collection and analytical capabilities.
How does data conversion affect your business?
Whatever the product or service, companies can no longer afford to ignore data collection, which is part of the dataization phenomenon. Logistics companies, for example, use data logging for a variety of reasons, such as tracking and phasing out the ideal state of a product in storage or transportation.
In practice, storage providers may need to record temperature and humidity data at one of the facilities to ensure the goods are stored in ideal condition. The shipping company can measure environmental factors to determine the potential adverse effects on the products in transit.
How to digitize your business
Here are some ways to successfully digitize your business:
- Use the right technology: By integrating your business with the Internet of Things (IoT), you can start digitizing your business. That means you need to use the right technology, such as mobile devices, wearables, Bluetooth beacons, and voice assistants.
- Use the appropriate platform: Once you have your infrastructure in place, choose the right platform to effectively extract your data. This platform needs to generate the data needed for research. You also need to be able to convert large amounts of online data into structured machine-readable information. The right platform provides the right tools to monitor and analyze trends to improve the decision-making process.
- Create a centralized repository: The only way datafication works is to process all available data. Therefore, you need a single repository that everyone in your organization can access.
Current applications of datafication
Datafication is no longer just a buzzword, as there are numerous applications in different industries, including:
- Human resource management. Companies can collect data from mobile phones, social media, and apps to identify potential talents and analyze characteristics such as personality and risk profiles. Datafication can measure analytic thinking rather than subjecting applicants to a personality test to determine if they fit the organizational culture or role they are seeking. Datafication has the potential to lead to the development of new personality metrics that recruiters can use.
- Customer relationship management. Companies that use customer data also benefit from dataization tools and strategies to better understand their customers. They can develop appropriate triggers related to the purchasing behavior and personality of the target group. Datafication allows businesses to collect data based on the tone and language used by potential customers on the phone, by email, and on social media.
- Commercial facility. Datafication is also useful in the real estate industry, especially commercial real estate. Real estate companies can use data conversion tools and strategies to gain deep insights into different locations. This is how they know if the real estate they are targeting is ideal for clients looking to build a profitable business.
- Providing financial services. Of all industries, the financial services sector will probably benefit most from dataization. Insurance agents use digitization to understand an individual’s risk profile and update its business model. The banking industry can also use it to predict the ability of a person to repay a loan or mortgage.
Simply put, datafication has begun to revolutionize the world in ways we never imagined. Big data sets require storage space, database software to store the data, and analytical tools to transform the data into information that will be meaningful to the business. Technology now offers tools for identifying patterns, trends, and relationships along with data storage, data management, and data analysis. As the data becomes readily available, organizations need professionals with sufficient skills to analyze and manage the data to ensure that it offers maximum value.
Career opportunities have been created in the fields of data infrastructure, data management, and data analysis. According to Gartner, an information technology research and advisory firm, big data creates more than 4.4 million jobs and provides opportunities for analysts and data-savvy job seekers. Organizations will require the expertise of those who understand how to collect, store and analyze data. We are entering the era of big data. Datafication will certainly play a key role in future innovation and productivity.