Businesses process, collect and make their reports using large quantities of data. It has been said that the average business manager spends around 2 hours of each day looking for data, with half of the information he finds being useless. Businesses have to find more efficient methods to turn all of their data into information that is usable. They also need to make sure that their data is protected because, without it, they wouldn’t be able to function.
Data
Raw data is the term that is used to describe the figures and facts that businesses process on a daily basis. For example, in a retail store, each transaction will be recorded. That being said, the business will only learn a very little by isolating and examining each sale. Data turns into information once it has been processed and context has been added, along with purpose and relevance. Analyzing daily sales can reveal things like patterns and trends, like items that are best – selling or days that you make more sales.
Knowledge is actually simply a set of beliefs that is based on the relationship between all of those isolated pieces of information. For example, a grocer might know that they will need to order extra cases of sodas on Tuesday because they are the best – selling item for his store on Wednesdays.
Its Importance
Having the ability to analyze and to act on the data you have is incredibly important to startups and established businesses alike. You need to make sure that nothing ever happens to your data, such as it being corrupted or made inaccessible due to human or computer error. For this reason, you need to have professionals like server data recovery by Secure Data Recovery on call. The pace of change in business means that companies of all sizes need to be able to have quick reactions in regards to the constantly changing demands from environmental conditions as well as from customers.
Prompt action might be needed, and decisions are becoming incredibly complex as more and more businesses compete in the global market. Managers might need to have the ability to understand massive amounts of data so that they will be able to make informed decisions.
Startups
Building a startup can be incredibly difficult. However, if you are able to avoid some of the more common pitfalls, you will be able to increase your chances for making it a success. Using business intelligence tools will be able to assist you when it comes to making decisions using the data you are and have been collecting. These tools will provide you with all of the information that you will need in order to make decisions that are insightful. Most of the time, your data will be stored in multiple databases and applications that are probably unrelated. Business Intelligence tools will gather and then process the data from each of these multiple sources.
They will then create reports on the information they found in order to give the decision maker the necessary knowledge. Effective BI tools will help startups to identify opportunities for growth while also giving them an understanding of the preferences of their customers and increasing their competitiveness.
Data and Trust
You also need to use your data wisely in order to build trust with your clients. You can do this by simply making sure to do a few things, such as:
• Explain in laymen’s terms how the data is handled. Will you share it, sell it, protect it?
• Make sure that the information is available. Explain what you are protecting and how it is being protected.
• Get certified by one of the companies that validate, test, and audit data.
The Impact
The University of Texas did some research and found that when companies – especially startups – make small improvements in the quality of data, its usability, remote accessibility, intelligence, and sales mobility, they can earn large financial returns. This study found that if the businesses increased the usability of their data by only 10%, they could see an increase in the annual sales by EACH employee by as much as 14.4%. This just goes to show you the kind of impact that your data can have on your business and how it can make your startup grow.
