As the acceleration of digitalisation and advances in machine learning and computing power continue to fuel a new age of big data, its effective analysis is coming to play an even more integral role in modern business practice. Get it right and the effective use of data can boost productivity, create new opportunities, improve services, enhance employee engagement and position businesses at the forefront of innovation.
Surprisingly then, the data literacy gap remains as wide as ever, with it evident that it is often those in the highest positions of a business that are typically the least data proficient. But if companies are to keep pace, this must be addressed with a much more concerted, company-wide approach to data, comments Natalie Cramp, CEO of Profusion.
As people have come to conduct more of their business and personal lives online than ever before, the world’s data volume has become almost unimaginably big. Every day it is estimated that approximately 306.4 billion emails are sent, 500 million Tweets are made and around 2.5 quintillion data bytes are created. By this year, 70 per cent of the world’s GDP will have undergone digitalisation and over the next few years up to 2025 global data creation is projected to grow to more than 180 zettabytes.1
This new data creation presents a powerful opportunity for businesses to consolidate their strategic insights and, in turn, meaningfully advance growth ambitions.
Done well, the analytical power of big data can help achieve better predictability, equipping businesses with increased forecast accuracy so they can plan and take action accordingly.
It can help companies pinpoint exactly what their customers are looking for and create tailored, hyper-personalised experiences designed to trigger brand loyalty. It can also be used to identify upsell opportunities, leverage emerging trends and distinguish what new product updates would fit the existing customer base.
The list goes on, but the significance is clear – data is an essential tool that any business should have in its armoury when priming for growth. This is echoed in a recent Forrester study which states, “Data skills have risen in importance over the past five years and the trend isn’t likely to stop anytime soon.”2
It is, perhaps, surprising then that the data literacy gap remains one of the most pressing obstacles in achieving the wider data-driven mandate.
Mind the Gap
According to Gartner, “By 2020, 50 per cent of organisations will lack sufficient AI and data literacy skills to achieve business value.”3
At Profusion, we recently conducted research4 amongst business leaders which revealed that, on average, CEOs tend to have the least understanding of data and statistical concepts compared to their leadership team and managers. This was in tune with a pretty poor standard level of data education found among most senior professionals.
The impact of this top-heavy data literacy gap cannot be underestimated. While once only required for employees within data analytics and business intelligence teams, the ability to interpret data is now a common and essential task in every business remit and ranking.
Today, whether it’s an employee working in finance, HR, product development or marketing, more than ever, the ability to understand data, interpret it and use those insights to make collective, informed and overall better decisions is increasingly aligned to success.
This becomes even more important as developing trends such as Artificial Intelligence (AI), Virtual Reality (VR) and 5G hyperconnectivity continue to push a new age of bigger data.
Of course, as busy businesses look towards new challenges and opportunities afforded by the New Year, upskilling on data literacy may appear to be the least of their priorities.
However, it’s an investment worth making. As demonstrated by numerous studies across the globe, organisations that achieve data literacy reap significant rewards. According to research from the Data Literacy Project, enterprises with higher corporate data literacy scores can have $320-$534 million in higher enterprise value.5
This is indicative of our work at Profusion too. Working closely with clients to transform their data into actionable insights, we continue to add immeasurable value – empowering senior teams to make better decisions, influencing successful new business developments, and even helping clients to recruit the right talent aligned to wider organisational goals
But for us, it isn’t just about providing expertise but equipping our clients with the knowledge and tools to understand how data and artificial intelligence can help them.
In this vein, our Data Academy offers a powerful upskilling programme that has been purposely designed for organisational leaders and managers. Through a combination of practical and theory-based learning delivered by our expert team, this short programme continues to empower individuals to become more informed and collaborate successfully with their data team to drive business value.
Fit for the Future
In this fast-paced, digital world, the effective use of data is no longer just a key business tactic but a driving force of the modern economy.
In this way, it can no longer be limited to just a few data experts but must become a company-wide initiative, where employees at all levels are empowered to ask the right questions of data and technology, build knowledge, make decisions, and communicate meaning to others.
Of course, this may require investment in upskilling and extra resources. However, as more businesses come to realise the direct correlation between better data literacy and business success, the inevitable transition towards a data-centric culture will enable better results, create new opportunities and ensure they remain fit for the future.
4 Profusion data literacy research amongst 300 senior professionals, August 2021
5 Data Literacy Project, enterprises with higher corporate data literacy scores can have $320-$534 million in higher enterprise value.5
What Every Small Business Should Do
The majority of the difficulties associated with establishing a business stem from failing to accomplish the small things correctly. The basics will lead you to the top, as any competent instructor has stated at some time.
If you’re thinking of starting a small business, make sure you follow these 10 small business rules:
1. You must keep track of your finances.
Lack of capital, is the leading cause of small business failure. You must undertake proper financial planning and fully comprehend the business levers that might affect your cash flow.
Do you purchase stock?
- What amount of cash should you have on hand?
- Do you have a system in place to collect money from clients?
- How long do you have to wait for them to pay you?
- Do you have any loans that you need to repay?
- Do you rely on suppliers whose prices fluctuate according to market conditions?
2. You must create a data-driven culture.
The better your business decisions are, the more data you can track and utilize to make them. Business often necessitates certain “intuition feel” judgments, but it’s preferable to provide your instincts with as much knowledge as possible.
Tracking your company’s key performance indicators (KPIs) and understanding why they rise or fall may help you make decisions that will help you develop and stay on track.
3. You must participate in Lean Planning.
Rather of creating a long-written document that you utilize once and then file away, it’s critical to create a strategic and financial plan and track it on a frequent basis.
Planning is a continuous tool that should be used to understand the assumptions you have about your business and whether or not those assumptions are valid, or whether you need to make changes and adapt your assumptions.
60 percent of small companies in America fail due to a lack of cash, not a lack of profits—by utilizing Lean Planning, you can rapidly determine if you have made any financial assumptions that will have a negative impact on your cash. Maybe you assumed you’d get paid every 30 days on the dot.
By engaging in ongoing planning and then tracking the actual results of your business against your plans, you can quickly determine if you are getting paid every 45 days, and if so, you can increase your credit line quickly and appropriately, keeping your business cash healthy—before you get into trouble.
4. You must have a strategy in place for attracting and keeping top employees.
We are continuously on the lookout for top talent in our industry, therefore we make it a point to follow talent in our region on a regular basis and design outstanding retention programs and rewards.
Take some time to consider your company’s culture and what you want it to be, and make sure that culture is factored into your recruiting selections. We utilize LinkedIn on a daily basis to follow and acquire talent.
5. Every day, you must listen online.
Even if you just operate from 9 a.m. to 5 p.m. Monday through Friday, your business is “always on.” Every company should set up internet alerts to monitor what their customers are saying about them, their rivals, and the market in general.
Google Alerts is a fantastic (and free) tool for “listening” to what’s going on online. Be the first to know when a consumer leaves a negative review or when someone praises your company online. Use these methods to remain ahead of the conversation and capitalize on it. You need to get a business phone number too.
6. You must engage in marketing that generates a return on investment.
Small companies frequently tell us that they have no idea what marketing is. What should they spend their money on? Is it effective? Is it better to promote on the radio or on the internet? Should they believe the Groupon or Comcast salesperson who tries to persuade them to distribute discounts to the general public or buy local TV ads? What is it that works?
What does not work?
Small company operators should begin in venues that are both free and simple to access. Begin by forming relationships with local companies and company owners. Find out what it is that they do that is effective. Find out how visitors find your website and where they come from by using Google Analytics and your website.
Customers should be questioned about how they learned about you. And if you do decide to promote, make sure you know how to track it. Make a unique offer and keep track of it. Only provide one type of service or product. Repeat your successful marketing efforts after learning what works and what doesn’t. If you won’t be able to measure the results, don’t invest the money.
8. You must communicate with your clients.
Every company should communicate with its clients as frequently as feasible. If you own a retail store, talk to your customers at least once a week (if not every day). Discover what they enjoy—and what they despise.
If you own an online business, send a brief survey to your consumers or ask a few survey questions after they check out. Make a call to them. People enjoy talking and being asked for their viewpoint. Negative feedback might be difficult to hear, but it’s important to hear it and understand how you can improve your business for your consumers.
9. You need to know your competitors.
Both your direct and indirect rivals must be known and understood. You should always be aware of your rivals’ activities, including what they are doing, how they promote, and how they price their products.
You may be the only one of your kind in your town or sector, but that doesn’t mean you don’t have indirect competition. In my town, a small do-it-yourself tie-dye store has no direct competition.
They do, however, provide activity-based events and compete with all of the other businesses who host birthday parties and group activities. They also compete with other tie-dye merchants at Saturday Fairs and Markets. Even if they don’t have direct competition, they need to know how to position themselves against all of their indirect competitors.
10. You must have a larger goal in mind: a mission.
People like to work for companies that are more than simply a money-making machine. That isn’t to say that you can’t set sales or profit targets; it only means that if your employees believe they are part of a larger purpose, they will work harder and be more loyal.
5 Ways That Businesses Can Get the Most Out of Their Digital Marketing
Everyone knows that the world of marketing has been changing for the last two or three decades. The days of traditional marketing through billboards, radio ads and television commercials are still around, but something new is taking the world by storm. Digital marketing is the way of the future and has proven to be more beneficial for businesses everywhere. It’s not that traditional, offline marketing is completely dead, but it is difficult for business owners to deny the power of digital marketing and what it can do for their businesses.
Because the world has changed so much, people have now moved online, so a business owner needs to learn how to market their products and services digitally. If they do not, there is a huge risk that they will not be around much longer. However, the problem is that most business owners do not understand digital marketing. To begin, most owners do not fully understand marketing altogether, and they go for hiring a marketing agency to do this for them. But now, when you add a digital aspect to this scenario, it makes it even more confusing to the owners. If a business owner starts with simply knowing what digital marketing can do for their business and how to get the most out of it, this is a great place to start.
- Utilize Email
If your business is not using email marketing yet, you should be. It is far from being dead, and many people are just beginning to tap into what it can actually do for their business. To make the most out of your digital marketing efforts, advertising your company through email is essential. It could very well be the foundation of your marketing online. Email is all about keeping the channel open to your customer who you might not have seen in a long time or being available to someone who is simply interested in what you have to offer. Send occasional, nurturing emails to your following and customers to keep the dream alive.
- Build a List
Next, you have to build a list. Many marketers and business owners will tell you that you must have a list in order to survive. Now, the list is nothing more than a collection of information from your customers that includes their names, numbers and email addresses. You need this valuable information so you can email them and get in touch with them when things are dry. To get the most out of digital marketing, you should always be gathering this information from them and storing it for future use. Gather this information by running online advertising to generate leads.
- Do More Videos
To be the absolute best at digital marketing, your business should be using more video. This is because research shows that consumers want to see videos above anything else online. They don’t want to see still images and text, but they want to see you rock it through the camera. The good news is that this isn’t hard to do with modern innovations. Use your smartphone to record simple videos of your business and use these clever videos as the creative part of your digital marketing to catch their eyes and stop them from scrolling. The other great thing is that you will feel more like a movie star for creating videos.
- Build a Following
Now, it’s also important to build your online following. These days, it’s all about how many people you have “following” you online. These people are your audience, which is one of your valuable assets online. Don’t think that these are just virtual people that offer you known value. They are actual people who follow your company because they might be interested in what you have. It’s important to always build your following online. Increase your page likes and your audience, and your products and services will practically sell themselves. YOu can run specific campaigns to increase your following.
- Learn How To Target
To get even more out of your digital marketing, learn how to target the right people. Remember, you are doing all of this online marketing in order to reach people in hopes that they will make a purchase with you. To do this, you have to put yourself in front of the right people, not just anyone. But be happy, because online marketing makes it easier to find your customers. Learn how to navigate with digital marketing to find your right audience, and this will also make you stronger as a whole in your company. You will know your customer’s pain points, what they need and what they’re saying.
If you put a bit more effort into your marketing effort by learning how to do it digitally, you can definitely increase your profit and get the most out of it. With the right strategies and a little education, you can make anything happen online.
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