You Need Data Even if You Don’t
Everyone is obsessed with data. Should you be too?
Data science, data engineers, data collection, data processing, data center. Data is everywhere.
But what is data? And does your business need it?
Data is exactly what it sounds like: organized information.
Remember, when we used to make mailing lists at events? Physical lists that were filled in with a pen or pencil on a piece of paper.
That was basic data collection. Name, address, phone number. These lists were used pretty much the same way we use them today: to inform, to sell, to engage.
So data for business is nothing new, but it has exploded and businesses have found new avenues for it.
And governments have started regulating it.
Data Applications
Some of the top commodities in the business and innovation world today are data sets and databases.
They are as diverse as the flora and fauna of Brazil. They include traditional name-contact-info sets, dietary preferences, financial brackets, fill-in-the-blank and the set probably exists. (If it doesn’t start making it!)
Banks will use your data to project your future likelihood of paying back a loan.
Insurance companies will calculate the likelihood of you having an accident (and will offer the according policy).
SaaS companies can use them to determine an ideal pricing policy (as well as provide the services themselves).
AI writing tools will use previously written texts to generate new and unique ones. (For the record, I haven’t used them yet, and am a bit afraid to do so, to be honest.)
The possibilities are endless.
A word on data sets and databases
You’ve probably noticed these two notions already.
Data sets are specific sets of information, whereas databases are a way of organizing those data sets into something cohesive.
Databases will usually consist of several data sets.
Refusing data
With the digital world being so omnipresent, it’s easy to understand the desire to want to say no to data.
However, 9 times out of 10 you’ll end up resorting to some form of data collection or data access.
If you’re a small business in its early days, do plan to use data and create custom solutions specifically for yourself. As a result, you won’t have to rely on trying to adjust outside services for your cause.
Create with data
Trying to find innovative ways of using data may lead to new breakthroughs: you can try to use data differently or come up with a new way of processing it
A few years ago, neural networks were all the buzz, now we’re in the stage of full-on AI art. What’s next?
You don’t need to aim to make the next fad, try to solve your business’s needs and you’ll end up solving them, and, possibly creating something in the process.
Regulations
As consumers, we’ve all signed off on Privacy Policies and probably haven’t read every single one of them.
As businesses, we need to be strategic in crafting those policies: abiding by the law is paramount. Have a top-notch legal advisor.
But in addition to adhering to legislation, it’s crucial to protect your business and protect its future value.
For a lot of companies, that value is in the data they possess.
Imagine you’ve created a successful company that a big player wants to purchase. And your company’s operations depend on its databases of clients.
If you didn’t do your homework and include the possibility of transferring personal data to new ownership in the event of a sale, the deal may be off.
So have highly qualified legal aid working with you.
Data is here to stay, whether we like it or not.
The most promising thing to do right now is to get to know what it is and work with it.
Your business might fail, but the data you collect will remain. And you might be able to turn it into another business. (If you do things right, in terms of the legal aspect.)
