Capitalising on the real value of data

By Ed Thorne, UK Managing Director at Dun & Bradstreet

Data has been termed the “new oil” and is fast becoming one of the world’s most important and seemingly endless resources. The right information at the right time has the power to transform business and industry. Developments in data and technology now enable companies to seek out and maximise competitive advantage, identify and mitigate risk, and make intelligent decisions about where to invest resources while increasing efficiency.

Companies that embrace a data-driven strategy are growing around 30% a year so it’s no surprise companies are investing significant time and money in data. Sixty seven percent of B2B firms cite an increased use of data and analytics as a critical priority over the next 12 months, according to a new study conducted by Forrester Consulting on behalf of Dun & Bradstreet.

With great data, comes great responsibility

Ed Thorne, UK Managing Director at Dun & Bradstreet

The amount of data available to – and generated by – businesses, customers and consumers is increasing at an unprecedented rate. Every day, we produce more data than the day before at a pace that’s arguably impossible to measure or model. This explosion of data has been fuelled by the growth of the internet and social media, the ubiquity of smartphones, advances in technology and ways to capture data.

But the increasing volume of data throws up its own challenges. There is greater scrutiny and focus on how personal data on individuals is used by businesses. The Cambridge Analytica scandal has raised serious questions about how organisations capture and use information, further intensified by new privacy legislations such as the General Data Protection Regulation (GDPR). In addition to privacy concerns, Gartner also predicts that by 2020, 50% more people will be consuming more fake information than real information, so verifying the accuracy of information is also key.

Maximising potential

As more companies look to data as a source of competitive advantage, the real value is often found in the analysis and insight that can be extracted from large volumes of information. The wealth of data sources and rise in digital information offers new opportunities. For example, companies can leverage online data to identify consumer behaviour and direct their sales and marketing strategies.

Technologies such as machine learning and artificial intelligence are increasingly being used to implement new ways to manage and process data, unlocking more opportunities to extract value. Businesses who dedicate resources to managing data in the most efficient way can reap benefits including a deeper understanding of their customers, identification of potentially beneficial or harmful business relationships ,and new ways to drive growth.

Mitigating risk

Data can also be integral to identifying, mitigating and managing risk. Businesses are under increased pressure to have a full and transparent view of all customer, partner and supplier relationships. Knowing who you are doing business with is essential to protect company reputation and ensure all parties are complying with legal requirements and not involved in unethical practices. Checking the creditworthiness and payment behaviour of customers can also help to minimise the risk of late or defaulted payments, and beneficial ownership data can identify potential risk in the supply chain.

The future of data

Advancements in technology will only serve to strengthen the value of commercial and consumer data. Emerging analytical techniques that can cope with and manage the proliferation of data – including the increased sophistication of machine learning and artificial intelligence – are enabling businesses to discover connections that they wouldn’t have previously seen, thereby driving increased opportunity and more prudent decisions.

Managed well, data can inform all aspects of business operations from pricing and contract terms to decision on which countries to move into. Having accurate and quality data at the heart of an organisation can help speed reactions to opportunities and threats, increase efficiency and drive business growth.

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