10 Reasons Why Data is Important to your Business

  • What is data?

    Data – a collection of facts (numbers, words, measurements, observations, etc) that has been translated into a form that computers can process

    Data, Database, Dataset, Business Growth, Data Analysis

    Whichever industry you work in, or whatever your interests, you will almost certainly have come across a story about how “data” is changing the face of our world. It might be part of a study helping to cure a disease, boost a company’s revenue, make a building more efficient or be responsible for those targeted ads you keep seeing.

    In general, data is simply another word for information. But in computing and business data refers to information that is machine-readable as opposed to human-readable.

    Human-readable (also known as unstructured data) refers to information that only humans can interpret and study, such as an image or the meaning of a block of text. If it requires a person to interpret it, that information is human-readable.

    Machine-readable (or structured data) refers to information that computer programs can process. A program is a set of instructions for manipulating data. And when we take data and apply a set of programs, we get the software. In order for a program to perform instructions on data, that data must have some kind of uniform structure.

    This might sound easy, but data is effectively changing the world we live in and the way that we work. If you own a business and are looking to grow, you likely have some notion that data is crucial in helping you take the next step.

    Here is a breakdown to explain the importance of data

    10 Reasons Why Data is so important

    Data Empowers You to Make Informed Decisions

    Never lose sight of the fact that data equals knowledge. The more data you have at your disposal, the better position you’ll be in to make good decisions and take advantage of new opportunities. Good data will also give you the justification and evidence you need to back up these decisions so that you can feel confident explaining your reasoning going forward. Without solid data, you’re much more likely to make mistakes and reach incorrect conclusions

    Data Helps You Identify Problems

    The fact of the matter is that every organization has problems and inefficiencies. Due to the ever-changing nature of the business climate and society as a whole, it is nearly impossible to perfect how an organization is run. That being said, access to good data will ensure that you’re able to identify significant problems early on and take action to solve them.

    Data Allows You To Develop Accurate Theories

    Related to the way data helps you identify short term problems, it also provides the tools necessary to develop more accurate long-term theories. Data can be thought of as the building blocks necessary to build coherent models that allow you to visualize what is happening in different parts of your organization.

    In order to truly implement effective solutions, you need to understand what is happening at different locations and in different departments. Data allows you to do this.

    Data Will Back Up Your Arguments

    Everyone seems to have an opinion about everything these days. Making real positive change happen within an organization can be challenging because it is unlikely that everyone will agree out of the gate. Luckily, if you have the backing of sound data on your side, you’ll be in a much better decision to push your ideas forward.

    Data Makes Your Approach Strategic

    Even feel like you’re just shooting in the dark? One importance of data collection is that it increases efficiency while helping to eliminate doubt. The most successful organization has both short-term and long-term strategies in place. Solid field data collection and analysis means that you’ll always to able to put your scarce resources where they are needed most. Understanding what area currently needs to be prioritized is essential in helping you grow and move forward.

    Data Helps You Get Your Hands-On Funding

    Funding is increasingly a matter of proving achieved outcomes. Due to the fact that much of funding is data-driven, it is critical that organizations are able to establish evidence-based practices and develop coherent systems that collect and analyze data.

    Data Tells You What You’re Doing Well

    In addition to identifying problems and inefficiencies, data also gives you the power to see your strengths and to implement the same methods across your organization. Being able to identify your high-performers and understand what they’re doing differently will give you the tools you need to develop strategies and assist programs in areas that aren’t doing quite as well.

    Data Saves You Time

    Having a smart data collection system in place will save you valuable time down the road. So many resources are wasted going back again and again to retrieve the same information. A smart system will gather and display data in a way that is easy to access and navigate, meaning everyone who is part of your organization will save time.

    Data Increases Your Return on Assets

    More and more studies are proving the crucial role that data plays in pushing ROA forward and making the most of what your organization already has at its disposal. You’re likely already sitting on potential extra revenue and simply need a smart data collection system in order to tap into it. There is plenty of evidence proving that collecting data such as maintenance schedule and monthly inspections will help you improve asset usability over time.

    Data Improves Quality Of Life

    Access to good data helps improve the quality of life both for those working in your organization and for the people you support. Once you understand the importance of data collection, you’ll be in a position to measure a situation accordingly. You can take appropriate action with fewer frustrations and complications at all levels of the process. Simply put, data improves overall quality.