Creating Value in the Pool of Data
By Damien Kopp, Senior Technology Advisor, Blue Pool
No matter how big, raw data is like crude oil: it's sticky, stinky, heavy and useless until it can be refined and transformed. So, how to turn your data, or better your decisions, into a competitive advantage? What you choose to do with your data is far more important than the data itself. Businesses can spend a lot of effort collecting data and mining them for insights leaving very little for decisions, actions and value creation.Setting clear goals is the first step: doing the right things require making sound decisions based on logic and guts and informed by insights. What is the data you need to answer your key business questions? A data-informed organization is an organization that has built a culture of decision making at all levels into a self-learning, fact-based virtuous circle. Value driven Analytics focus on the opportunities for efficiencies, new revenue streams and new businesses. In short: A good decision is a good answer to a good question. Mark Twain said “common sense is very uncommon”. Understanding our flaws and biases is critical to sound decision making: • Correlation and causality: true correlations can be interesting but the value is in true causality. The number of people who have drowned by falling in a pool and the number of films Nicolas Cage appeared in follow the same trend over the years!
What you choose to do with your data is far more important than the data itself