At Hansa Cequity, we believe successful enterprises of tomorrow will be the ones who can organize and leverage customer information at speed , to optimize their marketing performance, increase accountability, improve profit and deliver growth. Hansa Cequity insights will bring to you trends and insights in this area and it's our way of sharing best practices so as to help you accelerate this culture and thinking in your organization. We call this kind of an approach Analytical Marketing and we will constantly bring in "best practices" for improving your capabilities in Analytical Marketing.

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Data Equity will rival Brand equity in the days to come!

  
  
  

How companies store, transform & use their data will become as potent a marketing tool as Brand equity itself! Companies have huge amounts of data now and there is technology & skill sets available to decode it.

If used powerfully enough, data about a customer can transform the customer experience! When a bank calls you just when you have made that “high value, jewellery” purchase on your credit card, is an example of data driving a customer experience. You are immediately relived that your bank will be alert if your card gets into the wrong hands!

A recent RBI report caught my attention “RBI tells banks to automate Reporting”. Worried by the eroding profitability in some banks, RBI is trying to reduce any errors in reporting because of human intervention. This tends to happen because for proper reporting, banks have to pull out data from multiple “source systems”. The system for credit cards would be different than that for liabilities etc. Banks are not unique in facing this problem; many other industries today capture huge amounts of data & struggle to bring it all together!

Volumes of data from internal and external information systems are deluging many organizations. Hidden amidst all this data are the clues that we need to define the organization’s strategic position and retain competitive advantage.

In the midst of this upheaval, technology presents the concept of data warehousing as one way to handle information overload. Data warehousing has many different meanings, but it is basically a process that involves the physical separation of an organization’s production operations from its decision support operations.

datawarehouse new resized 600

The problem with datawarehouses is that they cost one hell of a lot of money! To build & to operate! And in business things keep changing so they cost another truckload of money to adapt to those changes!

Here are some real life issues that one can face as you go down the road to build a datawarehouse:

  1. Who owns the datawarehouse? Is this a Marketing owned effort or is at an enterprise investment? Whose budget are we using?
  2. Wouldn’t it take forever? Should we continue “business as usual” on the side while we wait “forever” for the datawarehouse to happen?
  3. How do we understand what IT wants to say? We need to think about the company ’ s IT infrastructure not as technology to process data, as we have in the past, but as strategic resource for making better decisions
  4. How do we select the correct technology? Too many choices to select from Teradata, IBM or Microsoft etc! 
  5. Articulate what analytics based decisions you want your datawarehouse to help you take? 

Comments

Very valid points.  
 
What is crucial is that do marketers own the data intelligence part, and if yes, do they practice it to have sharply focused campaigns.  
 
My general observation is that the marketing function is considered more about splurging money on building brands (which is fine and imperative) but what next. 
 
Do they use it beyond that ?
Posted @ Sunday, August 21, 2011 9:51 AM by Ashish Limaye
The title holds a compelling vision - that data equity will be as important as brand equity as a source of competitive advantage. 
 
 
 
As an Analytics fan, I am supportive of this. This article addresses the hurdles along the way. 
 
 
 
One of the questions is how long will a competitive advantage based on data equity last? A company will not want to invest the funds if it only lasts 6 months.
Posted @ Monday, August 22, 2011 3:45 PM by david k waltz
Landed on this site via Linkedin. 
 
Data Equity will be useful, if only one single software program is used in a company.  
 
In many medium-sized companies, multiple software program are used in day-to-day operations.  
 
If the multiple software programs are not in sync, the Data Analysis would not be correct. 
 
And, as pointed out in the Post, who owns the Dataware houses, the marketing team or the Operations Team? 
 
One more competitor is the Risk Team. This is more important in the financial world.
Posted @ Sunday, January 29, 2012 10:05 AM by prashantn
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