January 19, 2022

Data Analytics: The Business Value of Data Collection

Data collection can mean much more than a list of consumer names and addresses in a database. The data collected by corporations have much more significant importance. The data held by a corporation can be more valuable than any other company asset.

Oil was the world's most significant industry for many years. Today – the most extensive business in the world right now is data. A recent study was performed at the University of Texas, designed to measure the value of data and its impact on corporations. The study found that if any Fortune 1000 optimized their data's usability factor and accuracy by 10%, these companies would generate an annual boost to their revenue of more than two billion dollars.

Read more to learn about the business value of data, how it adds value, and the benefits companies experience when it invests in data collection.

What is the Business Value of Data?

In recent news, many businesses are considering closing or restructuring due to the current pandemic; some enterprises have been startled by the outcome. One example of a shocking result from evaluations for loan collateralizing done by both United Airlines and American Airlines was the value of their company data.

While the airline business had been booming for many years, many airlines offered customer loyalty programs or miles for discounts and future travel. The fantastic results of the third-party evaluation on both airlines were that their data was valued at two to three times the total value of the business as a whole.

Let’s take a look at these numbers:

United Airlines – Company value about $9 billion, customer data value close to $20 billion.
American Airlines – Company value around $8 billion, customer data value up to $31.5 billion.

What is more surprising is that when an organization files for bankruptcy, the most valuable asset that belongs to the business is its data in today's data-driven world. If a company is sold, transferred, or files for bankruptcy, any consumer or other data they own is also sold or transferred.

Data Analytics Adds Tangible Value to Business

When companies, websites, and apps are bought, transferred, or go bankrupt – the data is the most valuable asset on the evaluation sheet. In addition, some companies have built vast databases on customers, and that information could be mined by another business to develop their customer base. This means that anytime an organization can make on its information base, it creates a long-term, valuable asset.

In these demanding and complex times, many businesses have closed, had "going out of business" sales, or filed bankruptcy. When the assets of these large companies are sold, the item of genuine interest isn't in the inventory. It is the data. An example of this in the news was when Ceasar Entertainment filed for bankruptcy. Many creditors were owed, and the company's assets, including its lavish properties, went up to the highest bidder. Surprisingly, the Total Rewards Customer Loyalty database sold more than $1 billion more than any Caesars’ remote resort locations.

Data analytics is more than simply collecting data and getting it into a database. When a company can review the data, test data, and educate themselves on their customer's habits, they can boost revenues. Companies use data analytics to understand what products and services to offer to which consumer. Data analytics is how a company recognizes and reproduces its consumers.

Successful Businesses Excel in Data Analytics

Successful corporations invest in and focus heavily on their data, data security, and data analytics. Now that data is the most valuable asset to a company, business managers discover ways to capitalize on the data collected. For example, managers use business process management tools or BPMs to visualize the data to get greater insight into consumer behavior and other information.

When a business invests in capturing consumer data with solid business processes, the wealth or value comes from the ability to identify, capture, and store the data in a usable format. Organizations can analyze the data they need to complement their human ingenuity to develop relevant insights within their marketing strategies.

Top 10 Benefits of Data Collection

Data collection is far more than simply building a substantial company asset. More companies see results in all business areas due to investing in technology that provides real-time data. The right time to have correct data on hand is now; at the moment it is needed. Everyone, from CEO to the customer service department, needs to access real-time data that is actionable to compete in 2022.

Data collection can be handled in a variety of ways. Customers can be invited to create accounts, fill out a contact form, sign up for emails, and purchase products or services. Companies that have real success in data collection use every tool in their arsenal to gain information, gain a customer, deliver a successful business interaction, and create a lasting customer relationship. The rapid pace of today’s technology means that a business of any size can be effective and profitable. Data needs to be collected, available in real-time, analyzed, interpreted on-demand, and visualized to make instant reactive and agile business decisions.

There are a significant number of reasons for companies to invest in data collection measures. The following list includes the top ten benefits organization’s experience with data collection.

High-Level Collaboration
Rapid Decision-Making
Organization and Optimization -Increased Business Agility
Customer Acquisition
Improved Supply Chain Control
Predictive Planning
Identify Market Fluctuations
Personalized Customer Service and Marketing
Improved Customer Service
Risk Identification
Growth Planning

What is a BPM?

BPMs are business process management tools. Data on its own is meaningless. However, data that can be analyzed, viewed, tested and graphed can have transformational and positive impacts on many areas of the company. A BPM is a platform that allows the user to visualize the data and where improvements can be made to effect change. Business process management tools can interact with real-time data in the database while allowing employees or designated departments access. The data can be changed or updated, and every time it is accessed – know that it is the most accurate, latest update available.

Business process management tools have become a considerable part of the recent technological revolution. These applications include customer relationships, content, database, and other management tools. The better control a business has over its data, the more valuable it is to them. Data can also be used to automate tasks within the company.

Airtable is a business process management tool that integrates with many other applications and allows businesses to make the most value out of their data. Airtable also automates data functions; for example, when data is entered, automated emails, newsletters, and catalogs are sent. If a purchase is made, then inventory totals are automatically updated.

Where to Start with Business Process Management Tools

With the understanding of the value and importance of data, where can a company incorporate top BPMs or business process management tools to manage their data more effectively? DataCose can help companies include Airtable and all the necessary integrations to fully manage their business and data from front end to back end.

DataCose can customize Airtable to meet the specific needs of the company. Our expert Airtable consultants can help businesses understand their data flow and workflow from start to finish. DataCose can set up customer relations tools, automate marketing content and distribution, and even help with planning future products and services. When industry experts fully customize Airtable, there is no end to its ability to enhance data's capabilities.

For a review of your data needs or workflow automation, contact DataCose. We can show you how to make the upgrades necessary to generate the most value from data.