Data is everywhere; all of society is data-driven. This makes data-driven management an essential part of the digital transformation.
All too often, data is underestimated – even though it may be of vital interest as part of various operational processes. How can data help in ensuring excellent digital transformation? Allow us to explain using several examples.
Survive: for the customer journey
Data-driven transformation can play a vital role for organisational continuity. Data plays an important role in tracking your relationships across their customer journey, which is to say: the journey they follow to a completed conversion. For example, it offers insight into how your target audience proceeds to make a purchase, which may form the basis for (continued) product development or customer journey improvements. It lets a supermarket determine on which shelf to place a particular brand or product, because that is what the data shows.
But this concept can be taken much further. For example, a pizza restaurant with various urban outlets will have data on their clients’ customer journey. Based on sales data, they can analyse trends and gain insight into the exact demand for their products. It lets them predict how many mushroom pizzas will be ordered from a certain area, almost down to the exact time. They can prepare these pizzas in advance and make sure they are at the right temperature at the right time. Next, they have their delivery staff drive around with the right numbers and varieties of pizzas in the ‘predicted’ neighbourhoods. This way, client waiting times are substantially reduced, for example to 5 instead of 45 minutes for their local pizza place. This improves the customer experience and ensures many returning clients, who will recommend the restaurant via word of mouth. The costs for the smart pizza restaurant are also reduced; since they already know which pizzas are being ordered and which ingredients are therefore required, they can improve their purchasing process and limit their waste. This is one example of how data can influence business profitability.
Predict: for data-driven asset management
An important concept within the digital transformation is data-driven asset management, where asset data interpretation plays an important role for organisations. Smart use of the IoT lets your monitor assets like kitchen appliances or switchboards, and predict when they may be due a replacement or require maintenance.
A fine example would be of a bike rental company. The bikes are fitted with a smart system making it easy to interpret data from the bike. This lets the company know the average distance the tires can travel before needing to be replaced, or how many chain revolutions are possible before maintenance is required. These facts are all shown by the data that the company ‘reads’ from the bikes. The advantage is that the company already knows when certain actions may be needed; they can then capitalise on this information by preparing. Other businesses can also profit from this technology; service mechanic visits can be scheduled, planned, outfitted, and instructed better, without a need for an overcomplete or superfluous inventory, leading to maximum resource utilisation efficiency. In a general sense, this approach saves costs and improves the customer experience, thereby leading to a desired profit optimisation.
Grow: for profit optimisation
The use of data (within the digital transformation) is underestimated, and many businesses do not know how or at what levels best to implement data to achieve their goals. The examples above show that the optimised use and management of data can ensure a high degree of efficiency, insight, and predictive value, often leading to profit optimisation for businesses. In other words: lowering costs and improving customer satisfaction!
Get on board with data management
Want to get in on this? Then make sure you are prepared, establish a high-quality data warehouse, set suitable algorithms, and develop products based on customer journey data. Always ask yourself whether you are gathering data correctly and securely, whether you are interpreting the data properly, and whether you are translating it into (digital) products correctly. Elastique is able to help organisations meet these challenges today as we have in the past. Want to know how we can help you? Do not hesitate to get in touch!
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