The value of data is fundamental to modern business. Ensuring you have the right systems in place to validate, verify, and secure your data is just as vital as robust accounting and locking up the office safe at night.
The European Commission estimates that the value of personalized data will be EUR1 trillion by 2020, equivalent to 8% of the region’s GDP. That’s a substantial big data value for companies to tap into, and it represents just one form of data which businesses can leverage.
This value of data isn’t simply linked to business opportunity, it’s a core driver of economies. The European Commission estimated that by 2016, more than 6.16 million people worked in data-related jobs across the economic bloc. That figure is expected to have risen to over 10 million by 2020. The European data economy was worth an estimated EUR300 billion in 2016, expected to rise to EUR739 billion by 2020.
Data delivers value for a company in a wide number of ways. It enables you to optimize processes, reduce costs, prevent revenue leakage, identify opportunities, and enhance targeting of products and services. Fundamentally it’s down to building better understanding to make smarter decisions.
There’s a flip side to this coin of course. The right data represents a remarkable business opportunity. The wrong data can be a major driver of business loss. It’s estimated that ‘bad data’ costs US’ businesses as much as USD3 trillion annually.
If you want an illustration of the value of quality and qualified data as an asset, you only have to look at the transformation of the world’s most valuable companies over the last three decades. The 1990s were dominated by manufacturers and commodity companies, with the likes of Royal Dutch Shell, Exxon Mobil, General Electric, and Coca Cola leading in market capitalization. Microsoft and Intel were the only two tech firms competing for the top ten spots.
Fast forward to our modern era. The world’s most valuable companies today are dominated by technology and data-driven opportunities. Apple, Alphabet, Microsoft, Amazon, Alibaba, Tencent dominate the most valuable companies. At the heart of their success is data and innovation.
Research by Boston Consulting Group shows that companies embracing data-driven transformation are enjoying a 20%-30% EBITDA gain over peers through comprehensive insight across sales, marketing, supply chain, manufacturing, and R&D.
Yet the value of data isn’t inherent in its existence, it’s about how you integrate and manage that data to leverage value through opportunity.
Data loss is costly
If data can be leveraged to create value, its loss, theft, or corruption can also seriously impact business finances.
Data loss is a critical threat for any business. It’s not just malicious actors working to acquire your data assets, but fundamental flaws in systems and processes that lead to often costly failures.
In 2017, an unpatched Apache Struts framework in its database meant credit rating agency Equifax was vulnerable to hacks that resulted in 150 million user records being stolen. The ultimate cost to the company is a fine no less than US$575 million.
We often fixate on big-ticket cases when it comes to data loss, but the reality is that human error is also often to blame. Studies on the true share of failures vary, from 25%-75% depending on the source, but what’s clear is that these errors are responsible for significant data loss. That’s why automation is such a fundamental part of Neural Technologies’ own data solutions.
Pixar blockbuster Toy Story 2 was almost deleted in its entirety due to human error. A rogue command sent a cascade of file deletions that erased the movie from company servers. To compound the problem, the backup systems in place at the time were insufficient for the volume of data required. Only the fortuitous case of an off-site backup held by a technical director working from home saved the production. The film grossed ~USD500 million globally. That’s certainly a case of valuable data recovery.
The question of personal data offers a particularly emotive look at our modern data landscape. There have been numerous data scandals in recent years, perhaps the most politically sensitive being that of the Facebook Cambridge Analytica breach. This company reportedly used a third-party app to farm user details on Facebook, then going on to sell them for purposes such as political campaign targeting that arguably influenced major political decisions.
The value of data isn’t just in the opportunity you create from it, but the perception of how professionally you manage and secure it.
How you treat data is essential
These cases highlight that how companies treat data is essential. We should respect data in the same way we do physical assets — securing it, protecting it, and recognizing its value. That’s particularly important in the case of third-party private data. A bank wouldn’t simply stuff customers’ assets into a haphazard and unlocked vault. Not only does that make it harder to find and secure the assets, it makes it far harder for the bank to undertake its value generation operations utilizing those resources.
Neural Technologies works with customers around the world to integrate data-driven solutions that add insight in a complex landscape. These systems are designed to provide robust, user-friendly solutions that help companies realize the value of their data.
Our Optimus Platform leverages advanced artificial intelligence and machine learning solutions that unlock the value of data in real-time. Automated processes eliminate potential for human error, while open API integrations ensure that data can be integrated from a diverse range of sources. This provides a scalable data solution that can quickly adapt to changing business needs.
Neural Technologies delivers powerful revenue protection, customer engagement, and digital transformation solutions built on the fundamental value of data. We work to protect that resource, so you can leverage it to deliver benefits for your company. If you’re in possession of a business asset that can generate value, you need to commit to making the most out of it.
Want to realize the value of your data? Get in touch with Neural Technologies today.