Datafication – not to be confused with Big Data

Datafication, the latest buzzword in automation and marketing, has become one of the most important concepts in business across the world.  Datafication is the future of business and has immense potential. And if you are not at the forefront of this crucial trend, you will likely fall behind.

We live in a tech-driven age where everything revolves around data. You may know that modern technology has made it simple to record, monitor, and analyze everything around us in a quantifiable form. And datafication is one of the latest data-driven and customer-centered business intelligence practices that are revolutionizing the entire business landscape.

Coined in 2013 by Kenneth Cukier and Victor Mayer-Schöenberger, datafication has certainly become pivotal to companies and businesses that rely on data. 

What is it?

Datafication is the transformation of data into a form that can be used to streamline and improve business processes and operations. By making data more usable and accessible, businesses can boost their efficiency and improve accuracy.

Datafication involves translating behind-the-scenes processes and operations into meaningful and valuable information to make the business a fully data-driven operation.

It is worth noting that datafication is important for businesses of all sizes and in all industries. You can track, process, monitor, analyze, and leverage this data to improve your business and the services or products it provides to consumers. Because of global datafication, regulators and governments are pushing to give small businesses access to and control over their data as well as how it is shared with various third parties. 

President and CEO of Frontier Technologies, Inc., stated “This is a great advancement in technology that is allowing the smaller companies to get a play in how data is used.

“This is a turn in our data access ways which shows hope and promise for more opportunities in the future as it allows any size company the chance to compete,” she continued.

Benefits and Applications

By making data more accessible, usable, and sortable, datafication makes it simpler for businesses of all sizes to identify and track trends. It allows companies to make informed and prudent decisions about their pricing strategies, product lines, and marketing campaigns.

Facilitate Digital Transformation

There is no doubt that digital transformation is the latest technology buzzword nowadays. However, it is much more than just a passing trend or fad— it is becoming increasingly crucial for all businesses that want to keep up with the modern landscape and remain relevant and competitive in the modern world. 

And you can only make the most of the latest technologies if you’ve usable data. In this regard, datafication is the ticket to streamlining and improving your processes technologically.

Improve Efficiency

Because of datafication businesses will have a better and deeper understanding of what they are doing as well as how they are doing it. It technically, forces a company to better use their resources — including their employees while boosting efficiency across the organization. Examples of how Datafication is already part of everyone’s world Blockchain.

This technology is based on a distributed ledger that records all transactions conducted using cryptocurrencies, such as Bitcoin. Datafication contributes here in a big way. For example, it helps engineers develop secured data protection mechanisms.

Internet Streaming

Internet streaming platforms, such as YouTube, HBO, Netflix, and Disney, are making binge-watching addictive again. They use data to plan customized, influential, and engaging media content and recommendations.

Ever wonder how come you start to see similar ads on products you clicked on one time? That’s datafication in action. We create data every time we go on Facebook, withdraw money from an ATM, use a credit card to name a few. This is different than digitization; datafication allows vendors to track trends in marketing, predict sales and more.

So, what are the risks and what do companies need to do to protect their datafication? Security and privacy issues are key concerns when it comes any new technology and datafication isn’t different. As we all know, if data falls into the wrong hands, it can be used for phishing, scams and to spread disinformation.

“Additionally, the fact that there are more security measures around data for all types and sizes of business is great,” emphasized Moorthy.

“Another advancement in the data/security/privacy industry that can help companies mitigate risk since the technology is becoming more user friendly, sell and propose to the customers.”

It is not possible to imagine a world without data. Datafication is not just a buzzword; it is the future of business. Datafication makes it simpler to manage your data and allows you to automate processes to make activities more efficient and less time-consuming.

By leveraging datafication technologies and tools, you can free up your time and focus on other important facets of your business.