the Power of Data: effects on Business Change

Posted on Oct 12, 2023 at 11:10 PM

Data collection is essential in the business world. The power of data lies in the extent to which it positively affects all aspects of life.

The amount and diversity of data increase. Here comes the question: How can this resource (data power) be used best?

We will answer this question in the following lines of this article.

How the power of data affects different areas:

Recent economic data changed the network of services and products provided by companies.

it is tough to quantify the quantity or type of such impacts and changes.

Here will present 7 months in which the data have affected the business world.

• Business Development:

Business is one of the areas most affected by data. It is the most flexible sector, and there is no limit on the number of ways companies use data. The following are bases for using the power of data in the business world:

• Using demographic information in marketing:
  
  

Improve the quality of existing and issuing new products using data power. Website data increases the speed and elevates the effects (strength) of these sites.

Economic data solve financial problems in companies with the help of past mistakes.

• Improve Customer Service:

Data identifies everything your customers need before these needs trouble the company.

Future tools offer several suitable options and techniques for customers through artificial intelligence in the future.

• Improved decision-making:

The use of data analysis for business decision-making improves business decision-making processes.

All stored data made companies more flexible. Data affects the required production, the amount of storage, and working hours.

• Reduce production costs and raise quality:

Data can produce prices and costs as companies search for and store data to predict what can happen in the future or prevent repeat mistakes.

For example, we can't use data to predict how the market is going, to see when to increase, reduce, or store production.

Thus, data achieve greater sales and access to sustainable development.

Alternative data also improves the quality of products and services provided by companies.

Data give strong and accurate knowledge of the customer's desire and the improvements he requests.

• Detect and reduce fraud:

Companies can't manage all frauds, but big data contributes to detecting and reducing thefts and scams. 

Reducing fraudulent financial transactions, and detecting forged credit cards (even before the user knows it).

You can also identify cases that may be incorrect in insurance, by leaning into the data analysis cycle, thus detecting fraud-based insurance.

One of the benefits of economic data is the possibility to detect false financial reports.

• Reducing Technology Problems and Cybercrime:

Several studies have shown that many specialists have used certain data to identify weaknesses in systems and websites.

This contributed to a significant reduction in cybercrime, and they were also able to expect threats that could occur in the future.

Technology companies use several sources of data, most of which are popular sources such as mobiles and computers. as well as some data sources that they did not expect, such as cameras, cloud storage systems, and sensors.

• Increased hardness of supply chains:

When you have accurate and correct data on the supply chains you use. your management of current or future procurement problems will become better.

Big data also helps convert work into a new supplier or import raw materials to the production plant.

When we talk about the data power relationship with supply chains, it is necessary to mention one of the world's most famous and important companies, Amazon. Which has changed the term supply chains forever.

As Amazon is in the United States of America, its impact has prolonged most of the world.

Amazon has not been able to reach this threshold without having a huge amount of economic data and information.

In conclusion, these were the most important ways to impact data on businesses. For more you can enrol in a data analysis course.