For businesses, the real value of data lies not in the ‘data’ itself but how that data can be used to improve the way they operate, make decisions and interact with customers. Those that succeed in deriving value from their data, and use it as a strategic asset to drive business change, are clearly going to be at a competitive advantage.
At the World Class Customer Experience and Digital Transformation Conference, Mark Lister, Ness Chief Digital Officer, described how organizations can use data to create new business opportunities. View the video of Mark Lister’s presentation here.
Mark noted that we are amid a business era marked by fast changing customer expectations and financial uncertainties. To survive, it is becoming imperative for companies to think of new ways to swiftly enter untapped markets, expand market share and acquire more customers. Successful utilization of data is a critical factor in making this possible.
The presentation detailed the many ways businesses can leverage the value of Big Data. Often organizations multiply the value of their own data by integrating it with external data – corporate synergies might be a trigger.
Microsoft’s acquisition of LinkedIn is a strong example. When Microsoft decided to purchase the social networking giant for a cool $26B, the world knew that the deal was all about getting access to a unique data set of information on business professionals and their networks. For Microsoft, it brought new opportunities that would be hard to envision without the acquisition of LinkedIn’s data.
The same applies to companies across industries – identify which data would be relevant and then intelligently leverage it.
Mark shared the example of PayPal, a payment services provider in the U.S. Initially the company only had two main data points that it tracked – the number of customers and how much each customer spent.
PayPal realized that in a very competitive and mature US market the opportunities for continued spectacular growth would be limited. So, the company started looking overseas. It modelled the data for how much and how long it would take for PayPal to expand its footprint overseas. The company eventually decided to acquire Zoom in 2015. It helped them go faster than doing it alone, and PayPal is now available with Zoom in over 200 countries.
PayPal now has the ability to collect data on spending patterns — for example they can see the model of a person arriving in a country and taking a low paying job – or obtaining three jobs – and then remitting money back to their country of origin. They use this sort of information to provide new services that transforms the way people make financial decisions. Now they are making it easy to help pay grandma’s utility bill directly in a distant land, so that money doesn’t disappear into the hands of inefficient or even corrupt intermediaries. PayPal has used data intelligently to create a new channel for growth.
This is one of the many examples of how data is enabling organizations to disrupt markets and accelerate change. Ness works closely with its clients to provide them with an expert opinion on how they can leverage their data and create a plan to maximize results.