Netflix’s renowned algorithm recommends streaming titles based on viewing habits, preferences, and other data. This is achieved through datafication, a critical tool for businesses across industries. By leveraging constantly generated data, companies can transform operations and enhance value.
What is datafication? First introduced by Kenneth Cukier and Victor Mayer-Schöenberger in 2013, datafication involves transforming various aspects of a business into quantifiable, trackable, and manageable data. This data allows for better decision-making and goal setting.
Examples of datafication:
- Navigation: GPS-equipped mobile maps
- Health-tracking: Wearable technologies like Apple Watches and Fitbits
- Entertainment: Streaming platforms like Netflix
- Social Media: Targeted ads based on user data
Datafication is applicable to industries such as retail, healthcare, finance, human resources, marketing, real estate, and government.
Business Applications:
- Facebook Ads: Target users based on demographics.
- Bank Loans: Use client data for risk assessment.
- Amazon Recommendations: Customized product suggestions using AI.
Benefits of datafication:
- Better insight into processes and procedures
- Assessment of employee productivity
- Identification of pipeline weaknesses
- Modernization of enterprises
- Oversight over organizational information
- Resolution of inefficiencies
- Competitive edge
- Digital transformation and acceleration
Steps to datafy your organization:
- Evaluate current processes: Examine business workflows and information storage.
- Start with small components: Focus on areas that would benefit most from datafication.
- Choose appropriate technologies: Utilize IoT, AI, and Bluetooth beacons as needed.
- Create a centralized repository: Implement an ERP system for analytics and reporting.
- Monitor and analyze data: Continuously collect and evaluate data for improvements.
Datafication is a complex but essential process that can empower your organization to become data-driven.