What is the Importance of Data to a Business

How to Turn Your Data into Useful Information?

 
Business Data
 
Today, Business activities have been advanced due to rapid changes in the technological world. These days, every department and activity needs a reliable and accurate data to make timely and perfect decisions. For instants:

• The Human Resource Department (HR) needs a big data of human assets to hire skill persons.
• The Production Department needs a huge amount of data to meet the demands of markets.
• The Sale Department needs data to achieve their monthly and yearly targets.
• The Marketing Department needs it to search about customers’ preferences and choices.

Many examples can be given in order to explain the importance of data to a business. Because data is simply a collection of facts and figure that helps your business to find the solution of many problems related to your business. But the area of concern is that

Do you have the data that can give you reliable, accurate and useful information?

Your Data must have all these qualities to influence the decision that you are making for your business. Because if it does not have these factors, then it can harm your business in a number of ways like lack of human capital, deteriorating sales and ill- timed productions etc.

So to turn the data into useful information, you have to concentrate on 3 important processes:

1. Data Collection
2. Data Extraction
3. Data Mining

Data Collection:

 
It is the main processes that can make reliable outcomes from your efforts. It is the process of systematic gathering of valuable data for your business interests. It enables us to answer the stated problem, provides the alternatives and evaluates the outcomes. It can be done by various methods

• Questionnaires
• Surveys
• Focus Groups
• Interviews

Data Extraction:

 
After collecting data, its extracting is significant. It is the act filtering and retrieving meaning data out of unstructured or poorly structured data sources. Usually, after collecting the primary data, when we turn that data into a useful form is called secondary data. It also involves adding metadata and other data integration. The process is very crucial as it leads you to the solutions of your problems.

Data Mining:

 
After collecting and extracting data, data is further analyzed that process is called Data Mining. It is the process of searching large stores of data to discover patterns and trends that lead to complex analysis. In data mining, sophisticated mathematical algorithms are used to segment the data and evaluate the probability of likely outcomes. Data mining is also known as Knowledge Discovery in Data (KDD).
The key features of data mining are:

• Automatic discovery of patterns
• Prediction of likely outcomes
• Creation of actionable information
• Focus on large data sets and databases

This process can answer your questions that cannot be addressed through simple query and reporting techniques.
To conclude, these 3 processes can make your data into the useful information that can answer your questions with outcomes and their probabilities to occur.