Although the term “datafication” was first introduced in 2013, it is still highly significant today. Its purpose is to turn social behavior into measurable data by using advanced mathematical techniques, as opposed to merely converting analog data to digital data, which is what digitization does.
In this blog, we contend that datafication is not solely about gathering and scrutinizing data, but also about revolutionizing our daily lives by making them more productive, efficient, intelligent, and enjoyable. Also, we will discuss the change datafication will bring in the business in the future.
Datafication: A brief introduction
Datafication is the process of converting a business’s activities, behaviors, and processes, as well as those of its customers, into quantifiable and actionable data. This data can be collected, processed, and analyzed to enhance the organization and its offerings. Additionally, datafication makes raw data more usable.
What are the general steps of datafication?
Data collection
Data collection is the first step in datafication, which involves gathering data in various formats such as sensors, surveys, and social media monitoring.
Data processing
Data processing follows data collection, where the data is cleaned, standardized, and structured into a database to prepare it for analysis.
Data storage
Data storage involves storing the processed data in a manner that allows easy access and analysis, which may include cloud-based databases, on-premises servers, or other storage solutions.
Data analysis
Data analysis follows data storage, and the processed data is analyzed using statistical analysis, machine learning, and data visualization techniques.
Insights and decision-making
Insights and decision-making involve using the analyzed data to make decisions and take action, such as optimizing business processes, improving customer experiences, or creating new products and services.
What are the advantages of datafication in a business?
Gain process insight
Data in its raw form is often challenging to analyze, but datafication converts disorganized and confusing data into useful insights, enabling you to comprehend and optimize your company’s processes and procedures, which form the basis of your organization.
Datafication provides you with the ability to recognize what is working well, where you need to improve, and what you can do to enhance your performance. Also, it offers you an overview of the effects and impact of your actions, enabling you to evaluate your initiatives and how they are executed.
Facilitate digital transformation
These days, digital transformation is a popular term that carries significant importance for businesses that want to remain relevant in the modern world. It is not just a temporary trend but a necessary step towards using the latest technologies.
Datafication plays a crucial role in this process by providing usable data to improve processes and enable technological advancements. By analyzing data, you can identify your current position, recognize growth opportunities, and take the necessary steps to thrive through innovation.
Improve efficiency
Through datafication, your business will gain a deeper insight into your operations, which will enable you to make better use of your resources, including your employees, and enhance productivity and efficiency throughout your organization.
As a result, you will be able to streamline your operations, which will eventually lead to increased profitability for your business.
Information management
To start with, businesses generate a vast amount of data every day, which can be advantageous if managed properly, but overwhelming if not. However, datafication can help in organizing and managing data, ensuring that it is not only stored but also accessible and useful for decision-making.
With datafication, businesses can derive meaningful insights from the information they collect and avoid allowing data to become dormant or irrelevant.
What are the examples of datafication in different business areas?
Social Media
Social media networks keep track of users’ activities and preferences to personalize content and ads. Also, they have the potential to influence our preferences and daily interactions.
Financial institutions /risk analysis
Datafication is used by financial institutions to assess whether a client can be trusted to pay back a loan, thus assessing their lending worthiness and the associated risk.
Human resource/recruitment
Human resources professionals and recruiters can recognize behavioral patterns and traits in candidates, enabling them to make informed decisions about the type of employees they may become. Additionally, datafication is expected to play a vital role in the enhancement and advancement of smart city initiatives.
Employee satisfaction
Measuring employee satisfaction may not be something that can be physically seen or touched, but it can still be quantified through various metrics such as the Employee Satisfaction Index (ESI) and the Employee Net Promoter Score (eNPS). These metrics are obtained by gathering data from surveys, feedback from employees, performance reports, and by tracking employee turnover rates.
Is datafication the future of business?
Datafication refers to the process of converting data into a usable format that can help businesses improve their operations, increase productivity, and make informed decisions. In the past, companies relied on physical documents to store data, which was slow and inefficient. Then, with the rise of digital technology, computers were used to store data, but this approach was still slow and not suitable for handling large amounts of information.
Nowadays, digital technologies are used to store and manage data, but many businesses struggle to effectively process and manage their vast amounts of data. Datafication offers a solution to this problem by allowing companies to quickly and easily manage large amounts of data and generate new insights from it. Thus, datafication is the future of business.
Author: TechBlonHub
As a passionate blogger, I'm thrilled to share my expertise, insights, and enthusiasm with you. I believe that technical knowledge should be shared, not hoarded. That's why I take the time to craft detailed, well-researched content that's easy to follow, even for non-tech. I love hearing from you, answering your questions, and learning from your experiences. Your feedback helps me create content that's tailored to your needs and interests