Some decades ago, digital transformation was all about hardware. These days, data took place as the key player in digital transformation, which is defined by the using digital technologies to create new or improved business processes, products, or services, more than simply moving the old processes into a digital environment. Cloud computing and mobile technologies for instance are helpful in these processes.
But technology means nothing without the data running through its veins. So much data is produced every day, all over the world, that it is humanly impossible to read them without technology. Long story short: the value of data rests essentially on targeted extraction of useful information to achieve your goals, or data mining. For that you will need technology, which also means the digitization of information and processes.
Understanding the Role of Data in Digital Transformation
Data are found nearly everywhere. You can find them internally (ERP or CRM, for example) or externally ― on social media, IoT and, of course, telcos’ networks, the biggest data containers in the world. They first appear in giant unstructured amounts, called big data, usually collected with the help of AI.
To make good use of big data, you should select relevant amounts for analysis. Telcos, for instance, may create data partnerships with other companies. Technologies like analytics and data mining will help you clean the gathered data and extract what’s relevant for your company’s goals.
Data carry valuable, actual objective information, like patterns and metrics, that enable predictive decision making and thus better decisions. You will bring your company to the top of competition with data-driven decision making ― or the “art” of making strategic decisions based on objective information.
Data can be used specifically to inform decision-making (identify the most critical issues in your business) and help companies to identify new business opportunities, drive innovation (guiding investments and the new products), improve operational efficiency and customer experience (process automation, identifying causes for delay, preferences of clients, analyzing subscriber growths and churn rates).
Future and Best Practices for Data and Digital Transformation
According to Statista, it is expected that global spending on digital transformation technologies hits 2,8 trillion dollars by 2025, representing a 40 per cent projected growth over the next three years.
Regardless of the business area, digital transformation impacts the collection, management, and use of data. Digitization makes data management and analysis way easier, but it is also more demanding in terms of security. In this case, relying on one single repository in the cloud may be the best strategy for every company: this will help you digitize and to put an end on data siloes.
In telcos, to get meaningful data, you need to know your business as a whole and you need to know the right questions to make. Read here our 10 types of business questions that telcos can see answered through data.
Also, for telcos looking to implement data and digital transformation initiatives, data may be way relevant in identifying business objectives, developing a marketing strategy based on data, and investing in the right technology. Read here our 5 tips to start a successful Digital Transformation in telecom companies.