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.
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:
- Who owns the datawarehouse? Is this a Marketing owned effort or is at an enterprise investment? Whose budget are we using?
- Wouldn’t it take forever? Should we continue “business as usual” on the side while we wait “forever” for the datawarehouse to happen?
- 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
- How do we select the correct technology? Too many choices to select from Teradata, IBM or Microsoft etc!
- Articulate what analytics based decisions you want your datawarehouse to help you take?