The Importance of Data and Information in Business
When is the last time that you reviewed the status of clients for your business. More specifically, how many of you could answer the following questions about your clients: "How many clients does your business have?" "How many of these clients are active?" "What is the value of each of these clients to the business?" or "Which clients have dropped by the wayside?" If you can't answer these questions, then it may be time to consider the reporting systems with your business.
The Importance of Data
Data is essentially the plain facts and statistics collected during the operations of a business. They can be used to measure/record a wide range of business activities - both internal and external. While the data itself may not be very informative, it is the basis for all reporting and as such is crucial in business.
Customer data are the metrics that relate to customer interaction. It can be the number of jobs, the number of enquiries, the income received, the expenses incurred, etc. In order to know about our interactions with the customer, we need data.
This blog post examines in more depth why Data is important in your business
The importance of data cannot be under-stated as it provides the basis for reporting the information required in business operations.
Data Vs Information
An important distinction to make is the difference between Data and Information.
Data is the raw facts and statistics, whereas Information is Data that is accurate and timely; specific and organised for a purpose; presented within a context that gives it meaning and relevance; and can lead to an increase in understanding and decrease in uncertainty (as per http://www.businessdictionary.com/).
Another way to look at information is as data that has been interpreted and then presented in a more meaningful context. that allows a business to make decisions from.
Over here, we're looking in more detail at how to identify what data is reelvant for your business and how you can collect it.
The Importance of Information
And this is the key importance of information - it allows a business to make informed decisions by presenting data in a way that can be interpreted by management. In this context, customer information would be useful in providing metrics surrounding client/customer engagement to determine better ways to engage or work with your clients.
However, it must be stated that the value of information lies not only in the information itself, but the actions that arise from the information. For example, if the information alerts you to poor customer satisfaction, it is only useful if this creates a change in the way the business deals with customers. Hence the information process should form part of a wider review process within the business to gain the best outcomes.
We're discussing why information is important in more detail here
How Can DCODE Help
DCODE are an IT Consultancy that provide custom-built, web-based systems for business. Be it websites, internal management systems or analytical systems, we look to capture business processes and systematize them to leverage your existing resources. As part of this process, we can look to harness real-time data to provide dashboards and summaries presenting information about key aspects of the business. Using this timely information, you can then implement business processes to assist in making decisions based on timely information.
For more information about how we can be of assistance, or to discuss your IT requirements, please Contact Us today. We're passionate about IT and are excited to assist companies like yours in harnessing the power of their data.