In the 1990s a small grocery store in the United States felt threatened by the bigger, more efficient chain stores that began encroaching on their territory. Their solution was to analyse their business at a grassroots level! They identified some key data based characteristics; the majority of their profits were from a minority of their customers.
Armed with this knowledge they set out to secure their business well into the digital age. They studied those customers movements, what they purchased (and why) and most importantly they used the data to get to know their customers on a personal level. Profits increased and the business thrived.
Throughout history you will hear stories like the one above all the time. Likewise you will also hear of stories of companies stagnating in their old ways, never considering innovation or change. They stick to their core until their core falls apart and eventually they close their doors wishing things were different and perhaps even hoping.
We are living in the data age. Data is valuable but only when you have data and use it correctly.
How confident do you feel about competing in a data-driven economy?
If you answered no then don’t fret, you’re like most businesses.
What do businesses need to do to change to keep up in the data economy? What are their risks if you stay the same? If we back track a fraction. In a constantly changing economy, business models that were once successful and sustainable begin to falter. It’s as if the highway that used to travel through a town – resulting in that towns majority income – suddenly changed the path and bypassed the town altogether.
It’s easy to visualise and highway changing path because it’s tangible. You can see it and it is easy to understand. As an example it’s harder to see the “highway” change path with a recruitment agency or a second hand online shop – indeed a strange example to link together.
A typical recruitment agency charges a fee based on a placement whereas the second hand shop gets a small commission from the sale. Lets start with recruitment. In the past it used to be difficult to place an ad, receive an application and follow through with the entire job hiring process. Whats changing? The internet or more specifically sites like Facebook. Facebook already connects to all the potential job applicants, they know when someone has just started at a new job or just quit their old. They also know the type of skills they have and broadly speaking what type of personality they have. They’ve also created an automated method for managing the recruitment process using software instead of labour. What’s the end result – Facebook has a bigger reach and cheaper and easier process. Business can get better/quicker results through Facebook than they can using old outdated recruitment techniques.
What about the second-hand shop? I’m sure by now you’ve already worked out why I linked them together. Once again Facebook. Facebook is already connecting to potential buyers. All that was needed is for a software system to automate the transaction. Facebook markets is so effective that popular items will sell in a matter of minutes resulting in hundreds of enquiry in almost an instant.
Whats next? The key is for businesses to understand that the way it was done previously has changed and will likely never go back. Doing the same task won’t change anything so therefore something different needs to happen.
TechThrive have experts ready to help you navigate the complex yet highly lucrative data centric economy. We are experts at business process management and how understanding business data can drive your profits upwards.
Our consulting team will visit you at your premises for an onsite (or multiple) in-order to fully understand your business. They will then devise methodologies to gather data relating to problematic aspects of your business. They will assist in the data gathering process and finally analyses.
- Understanding of your business – customers, suppliers, employees, processes, finances, IT systems and everything that represents the “core” of your business
- Breaking the core of your business into “data managed” quadrants. What influences decisions? Why, who and how
- Initialising data collecting systems
- Analysing data
Our solutions centres on profitability and sustainability. Let’s go back to a recruitment agency as the example. What could a recruitment agency do to improve results? They need to offer something more than an advert, collation of CV’s (some even occasionally do an interview) and then hope a company picks their candidate. We already know that a huge selection of candidates is impossible to beat – Facebook does that better. One answer is in the candidate data and the perfect link to the company recruiting. Recruitment agencies can analyse CV’s and place the results in a deep learning database. Their clients existing staff members can be compared to the candidates to find patterns that offer similarities. Data science would allow recruitment agencies to offer better quality services thereby giving their clients a huge advantage in the market.
Our solution offers businesses insights into how they can structure their business transactions differntly to thrive in a data centric economy. We also approach data from a legal perspective ensuring compliance with data laws. However the core of our service is to understand the impact points that data represents within your ordinary business processes and extract value.
Our consulting rate is R2500 per hour.
Ongoing data analyses and management – POA per month.