What Is Datafication and How Can It Impact Your Business?

Companies in the 21st century are moving faster and faster, and the main impetus for this development is the advancement of data-centric technology. Datafication is essential for most businesses to function and prosper and the exponential growth of the data is staggering. By 2022, more than 1.7 megabytes of new information will be created for everyone on the planet.

The significant increase in this data is driven primarily by the IoT, the proliferation of mobile devices, BYOD guidelines, and the affordability of sensors. How can I use all this information, one might ask? One of the concrete ways companies can improve their decision-making and optimize their operations is to use data conversion. This is what you need to maximize benefits for your business.

What is Datafication?

Simply put, datafication is a set of tools, processes, and technologies used to create a data-driven organization or team. Data-fed enterprises use data logging. This is a method of collecting real (or system, in many IT companies) data over a period of time and converting it into a digital format that can be reported and manipulated to provide a comprehensive view.

How Does Datafication Affect Businesses?

Regardless of product or service, organizations can no longer afford to ignore data collection, which is part of the datafication phenomenon. Logistics companies, for example, use data logging for a variety of reasons, including tracking and phasing out the ideal state of products in storage or transportation. In practice, the warehouse provider may need to log temperature and humidity data at one of its locations to ensure the goods are stored in an ideal condition. Transport companies can measure environmental factors in transit to identify potential adverse effects on products.

Organizations can only keep up with the latest technological advances by looking at data conversion. Companies in all industries create data to improve many of the key processes. Optimization can be achieved as soon as these processes become measurable. With datafication, companies can improve their operations, be more productive and increase their bottom line. At the micro-level, it helps businesses perform their day-to-day tasks while maximizing resources. At the macro level, it streamlines the current process and keeps you competitive.

How to Datafy Your Business

Now, in practice, there are five steps you can take to speed up your business’s data validation process:

Make your office, workplace, product, or business smart. This means that you can turn to the Internet of Things and start integrating sensors throughout your business. Try to collect data consistently and universally across different offices, people, or devices. This allows you to collect data from new sources that you can use later for insights.

Introduce procedures to ensure data quality. To be useful, the data must be complete and correct. Therefore, data quality is paramount in the data conversion process.

Start by deleting the data silos in your organization. Data is typically stored in silos of different owners in different departments. Centralizing your data, for example, makes it easier to combine different data sources to gain insights.

Reassess your company and look at your company from a new perspective. Organizational datafication opens entirely new possibilities that need to be approached from a ready-to-use perspective to realize true added value for the enterprise.

Start with a proof of concept to better understand the different possibilities of big data in your enterprise. Since it is not possible to completely digitize a company at once, the digitization process must start small and grow from there.

Current Applications of Datafication

Datafication is not just a buzzword, as it is widely used in a variety of industries, including:

Human Resources Management

Companies can collect data from mobile phones, social media, and apps to identify potential talents and their characteristics (such as personality and risk-taking). Instead of forcing an applicant to have a personality test, datafication can measure analytic thinking to see if it fits the culture and role of the applicant. Datafication has the potential to lead to the development of new personality indicators that can be used by recruiters.

Customer Relationship Management

Companies that use customer data also benefit from understanding their customers using data tools and strategies. They can develop appropriate triggers related to the purchasing behavior and personality of the target group. Datafication allows businesses to collect data on the phone, email, and social media based on the tone and language of potential customers.

Commercial Real Estate

Datafication turns out to be useful in the real estate industry, especially in commercial real estate. Real estate companies can use data conversion tools and strategies to gain in-depth insights into different locations. This is how they know if the properties they are targeting are ideal for clients looking to build a profitable business.

Financial Services Provisioning

Of all industries, the financial services sector can benefit most from datafication. Insurers use it to understand their personal risk profiles and update their business models. The banking industry can also use it to predict the ability of a person to pay a loan or mortgage.

Benefits of Datafication

  • Datafication helps you manage your data. It makes it easier for people to understand and relate what datafication is and how it works. One of the advantages of datafication is that it helps you manage your data. Managing data helps organizations collect and organize information from many sources and make informed decisions.
  • Datafication Accelerates Data Processing. Datafication allows you to easily instruct your computer to retrieve only relevant information from a large database. That way, the media content will be available much faster.
  • Quick access to related data. The computer fetches only related data, so there is no risk of losing important data. In addition, store and access only the type of media content you need. This also helps you because you don’t have to do anything else with the data. It will just sit there and wait for you to use it.

Wrapping Up

When you start digitizing your organization, you’ll find that it’s far from just a technical challenge. The datafication process affects every aspect of the organization, including business processes, strategic processes, data governance, privacy issues, and corporate culture. All of these aspects need to be considered when adding data to your business, which is not an easy task.

If you need assistance with this process or need more insight into all things tech, please feel free to visit the Griffin Net Blog or contact us.