Datafication is a current technological trend that aims to transform most aspects of a business into quantifiable data that can be tracked, monitored, and analyzed. It refers to the use of tools and processes to turn an organization into a data-driven enterprise.
The term “datafication” was introduced by Kenneth Cukier and Victor Mayer-Schöenberger in 2013 to refer to transforming invisible processes into data that companies can use to optimize their business.
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Why Is Datafication Important?
Organizations can only keep up with the latest technological advancements if they turn to datafication. Companies across industries can datafy to improve many of their critical processes. Once these processes become measurable, optimization is achievable in an instant.
Datafication makes it possible for businesses to improve operations to increase productivity and pad their revenue. At the micro level, it can help organizations accomplish day-to-day tasks while maximizing resources. At the macro level, it can streamline current processes, allowing users to remain competitive.
How to Datafy Your Business
Here are some ways to successfully datafy your business:
Use the Right Technology
You can start datafying your business by integrating your business into the Internet of Things (IoT). That means having the right technology, such as mobile devices, wearables, Bluetooth beacons, and voice assistants, in place.
Use the Appropriate Platform
Once you have the infrastructure in place, choose the right platform that will allow you to extract data effectively. That platform should generate the data you need for research. It should also be able to convert massive amounts of online data into structured and machine-readable information. The right platform will give you the right tools to monitor and analyze trends to enhance your decision-making processes.
Build a Centralized Repository
Working with all available data is the only way to make datafication work. As such, you need a single repository that everyone in the organization can access.
What Are the Current Applications of Datafication?
Datafication is no longer just a buzzword because of its numerous applications across multiple industries that include:
Human Resource Management
Companies can gather data from mobile phones, social media, and apps to identify potential talents and analyze their characteristics, including their personalities and risk-taking profiles. Rather than making applicants take personality tests, datafication can measure analytical thinking to see if candidates match the company culture and roles they are applying for.
Datafication can lead to the development of new personality measures that recruiters can use.
Customer Relationship Management
Enterprises that use customer data also benefit from using datafication tools and strategies to understand their clients. They can craft appropriate triggers relevant to their target audiences’ buying behaviors and personalities.
Datafication lets companies gather data based on the tone and language potential customers use in phone calls, emails, and social media.
Commercial Real Estate
Datafication can also prove useful for those in the real estate industry, particularly in commercial real estate.
Real estate companies can use datafication tools and strategies to gain in-depth insights into various locations. Thus, they will know if the piece of property they are eyeing is ideal for a client who wishes to put up a profitable business.
Financial Service Provision
Perhaps among all industries, the financial services sector can benefit most from datafication.
Insurance agencies employ datafication to understand a person’s risk profile and update their business models. The banking industry can also use it to predict a person’s ability to pay a loan or mortgage.
With the way things are going, it is clear that datafication is no longer just a trend. It is revolutionizing the business landscape.