Source: timesofmalta.com
Data is everywhere. The amount of global information is growing at an exponential rate. The International Data Corporation forecasts that by 2025, the global datasphere will grow to around 160 zettabytes (that is a trillion gigabytes); over 10 times the amount of data generated in 2016.
Traditionally, data was structured and neatly organised in databases. This all changed with the emergence of the internet and the adoption of distributed technologies like the Internet of Things. There is a proliferation of ‘unstructured data’ being generated through a multitude of digital interactions coupled with exponential growth in the number of devices recording and transmitting data. Most of what we now do can be translated into noughts and ones capable of being captured, stored, searched and, ultimately, analysed.
The emerging velocity, variety and volume of data have given rise to digital concepts such as ‘big data’ and ‘data science’. But why is data so relevant to our lives? Information is only as useful as the intelligence we can extract from it. This entails effective, insightful data analytics coupled with a large amount of computing power to cope with the exponential increase in the volume of data associated with big data.
Several market studies have consistently shown that those that have adopted big data analytics gained a significant lead over the rest of the corporate world. Data analytics is not simply an informed historical view of your company; it is the combination of real-time data together with the ability to combine multiple data sets from various sources to provide new insights into business that have not yet been available to companies until now.
Practically, any individual or company that manufactures, grows and sells any good or service can use data analytics to make their manufacturing, sales and operations processes more efficient and their marketing more targeted and cost-effective. Data must be the driving factor behind business decisions as it provides unparalleled insights into the ins and outs of the company, its supply chain and end customers.
However, in a world that is now more than ever focused on protecting people’s data, how can companies responsibly and efficiently utilise their data through analytics while ensuring they remain compliant?
Data breaches have been shown to throw organisations into the global limelight for all the wrong reasons. Companies tread a fine line between maximising their data capabilities and ensuring compliance with global regulations. Despite this, data analytics and compliance must not be viewed as opposing forces but instead as complementary aspects that seek to maximise the overall capabilities of the company.
For starters, data analytics empower proactive and ongoing compliance efforts. Rather than waiting for compliance issues to emerge through periodic testing or risk-based internal audit activities, companies can uncover potential problems before they fully hatch and then take the steps necessary to correct the issues before they come to regulators’ attention.
The unprecedented effects that COVID-19 has had on effectively all sectors and many countries have brought the importance of utilising data and analytics back to the forefront of business discussions. The economic implications currently bearing down on organisations means there is far less room for guesswork and businesses must transition to a data-driven approach for decision-making to ensure their business continuity going forward.
The shift towards this data-driven approach will require several decisions to be taken. Organisations must revisit their data collection goals to recognise what data exists within their organisation. They should look to better understand what data analytics tools exist and analyse which tools to adopt as part of their operations.
Additionally, the setting up of a data strategy is pivotal for companies to ensure alignment across the entire organisation and determine essential factors such as data lineage to understand the origin of the data and data governance to align with their existing business goals.