What does Datafication mean in Business?

In this article we are going to look at what Datafication actually means for businesses. Be it Large, Mid Sized, or Burgeoning businesses. Datafication is a technology trend that turns qualitative data such as processes, behaviors, and activities of users, businesses, and customers into quantitative data. The conversion of qualitative information into numerical quantifiable data is done using Machine Learning (ML), Robotics, and Artificial Intelligence (AI). In this quantified format, data within an organization can be tracked, processed, monitored, and finally analyzed to enhance customer experiences.

My Bewilderment Over Marketing and Advertising

Before now I used to wonder how companies were able to read my mind. Were they? Or, how they were able to know what products, or services I searched for. And, then these advertisers would repeatedly flash these items and services on my computer monitor ,or laptop screen. It will go on and on for days. I knew it was neither black nor white magic. No clues about how ‘they’ knew my online behaviors were apparent. There must be an explanation(s). It cannot be rocket science, I said to myself. Well, may be it is a type of science, practice and art. Today, I know about the key to marketing and advertising. It is Datafication.

Fortunately, businesses of all sizes can benefit from Datafication. In other words, large, mid size, and small companies can become data driven enterprises to maximize business growth and then, expansion. Now, let’s explore.

Here is a Brief Video on the Birth of Datafictation

What Type of Information can be Datafied?

Everything and anything around us is data, and can be converted into a quantified format. This has led to an unimaginable amount of information about our Behaviors and Identity. Datafication is mainly used in Analytics, Forecasting, and Marketing. Here are some everyday and social activities that can be datafied:

Finances such as when we use our ATM cards, use a credit or debit card, or conduct financial transactions of some sort.

Human resources where employers of labor can identify skills in candidates’ behaviors. This helps employers to predict what kind of talent the prospective employee are.

Marketing and advertising to predict customer behaviors and sales, and customer engagement and experiences.

Entertainment such as watch a video, movie, sports, go to the cinema, or the news.

Telecommunications such as tweets, SMS, conversations on the phone.

Security such as when we walk past a security camera .

Real estate to predict people’s selling and buying behaviors.

Social media when we use Instagram, Facebook, LinkedIn, Tumblr, and so forth.

Healthcare when we go to the hospital, or clinic and when we engage in medical and healthcare research (physical and mental).

Is Datafication a Good or Bad Thing?

Undoubtedly, datafication is helping us understand the world like never before. Businesses are using new technologies gain insights into trends from which they gather our activities we provide. For example Marketers are able to analyze Instagram Facebook, Twitter and similar social media to predict Sales. And, it works! Because advertisement is then geared towards what the analyzed data suggests and predicts. Many Organizations are jumping on the bandwagon of improving their capacity for data collection and analysis.

Bernard Marr, who is a Big Data Guru amongst other things was pronounced by LinkedIn the number 1 LinkedIn Top Voice among UK influencers said,

“Wal-Mart is able to take data from your past buying patterns, their internal stock information, your mobile phone location data, social media as well as external weather information and analyse all of this in seconds so it can send you a voucher for a BBQ cleaner to your phone– but only if you own a barbeque, the weather is nice and you currently are within a 3 miles radius of Wal-Mart store that has the BBQ cleaner in stock.”

That quote simply sums up Datafication in action, Wow! As a blogger and marketer, this is Awesome. Analytical tools are used to turn copious amounts of data into Meaningful Information for Businesses to expand and grow. What will that mean when every company starts using datafication? In 2015, the IT firm Gartner stated, Big Data will create more than 4.4 million jobs for analysts and other data savvy jobseekers, especially for African professionals.

Needless to say, Datafication within organizations holds a lot of promises, and benefits. Let’s look at some of the Benefits of Datafying an Enterprise.

How is Datafication Beneficial for Businesses

Here are some examples:

Facilitating The Transformation of Data Into Digital Form: An organization can only appropriately utilize fast evolving technologies if your organization’s information is in the form of data. That means, datafication is the way to streamline enterprise processes technologically.

Properly Managing Your Organization’s Information: Datafication makes it possible to manage large amounts of data. Organizational data is properly organized and stored. This makes retrieval of data easy when needed.

Enhancing Efficiency In The Use of Organizational Resources: Understanding one’s business gives insights into better use of resources. These insights increase productivity, effectiveness and efficiency within the organization. Resulting in higher business profits, and earnings for employees.

Understanding Your Organization’s Processes: Datafication transforms difficult to understand data into comprehensible information such as trends and patterns and more. With these, your business can gain insights into organizational weakness, strengths and potential.

Additionally, Datafication is also beneficial in wearable watches and smart devices.

Like with any new, or emerging trend, there is the tendency to have some challenges. Let’s look at some of the challenges that experts in Datafication are tackling.

Some Challenges of Datafication in Business

Datafication also brings challenges and risks that companies must be aware of. Three key challenges and risks in particular are:

Securing Data: Unprotected data can attract malicious hackers. This is because data security is often pushed to the back burner. Purchase security tools such as BigID, or hire more Cybersecurity professionals.

Confusion with Big Data Technologies to Select: Due to lack of appropriate know how on Big Data storage, poor decisions are made in selecting appropriate technology. Consequently, resources such as time, money and effort are wasted. Hire a Consulting firm, or experienced professionals, who know more about Big Data.

Lack of knowledge Professionals: There is a scarcity of Big Data professionals. A likely solution can be to train existing staff members, recruit big data professionals, and/or buy knowledge analytics technologies that are powered by Machine learning (ML) and Artificial Intelligence (AI).

Integrating Data from a Spread of Sources: Companies often ignore the integration of data aspect. Integration of data is so important. Purchase the appropriate integration technologies.

Ethical Considerations in Data Collection and Use: Ethical and possibly legal implications of data gathering must be a consideration. Be open about how data is to be collected and used.

Potential Biases in Data Analysis: There is a potential for biases in Data analysis, which could lead to misleading insights. Use reliable information sources. Avoid discrimination be using the correct algorithms. data and prevent unauthorized access.

Lack of proper understanding of Massive Data: Improper storage of Big Data, which makes very difficult, or outright impossible to retrieve information when needed. Organize in-service trainings for all staff members handling Big Data, regularly.

My Take and Conclusion

So, what can I say! Datafication has become a useful part of our lives. It has enable individuals and companies to gain access and insights into valuable information that in the past was impossible. Yet, there a few risks. The more pervasive this technology becomes, I wonder if the cons will outweigh the pros. Or, will the benefits outweigh the costs? Personally, I am enjoying some of the benefits of datafication such as having a smart phone, and smart watch (which I gave to someone as a gift). But, Datafication has been fantastic because when used correctly, it could support the scaling of businesses, including mine. Really it has! I have also experienced some costs of datafication such as when my credit card was compromised (twice).

Additionally, I fear the biggest cost of datafication will be our over reliance on the scientific analysis of the data without finding a balance between our intellectual approach to analysis, and the spirit. That is, an intuitive approach to data analysis seems to be nonexistent. we are very proud to call ourselves intellectuals. The thought of that makes me feel some type of way. In my opinion, science is cold and lifeless without the spirit. Which is what science is mostly nowadays. May the Quantum phenomenon might brings some changes to this cold and lifeless status.

There is so much for humans to discover. But have we? I don’t think so because again we refused to allow the spirit lead the way. And use the intellect and science as a tool. Imagine the spirit as the master. Rather than our over reliance on the intellect and science with the complete exclusion of the spirit, or intuition. I cannot help myself, but think we would have been much further along with our scientific discoveries. I believe humans have not really advanced scientifically, or technologically as much as could have been if the spirit was allowed to lead the way. Excluding the spirit from almost all our daily endeavors, I think has been our biggest mistake.

Ironically most scientific and business inventions and discoveries are intuited. Some theories are conceptualized after having one, or more dreams. While other inventions are conceived and actualized through insights. Where do we think these intuitions, insights and dreams come from? I attended a sleep class once and the presenter, I can’t remember his name right now, said we are not comatose when go to bed. Rather, he said we experience sleep consciousness. For me, anything we do without that balance between our Spirit and Science, or our Intellectual endeavors and intuition will be seriously limited.

According to Toto Wolff,

“You need the right balance between data and gut feeling…”

He echoes my thoughts very succinctly.

I wish humans would bring back the spirit into all that we strive to do. And then, we can step back and see MAGIC happen.

What pros and cons have you experienced with datafication?

Best 4 Everything Content

Be sure to press [CTRL] & [D] to bookmark us!