The Power of Data: Unlocking Insights and Innovations Through Datafication

• Himanshu Patni
• June 26, 2023
• BLOG, TELECOM & IT
• Datafication, Datafication Analysis, Datafication Forecast, Datafication Growth, Datafication Outlook, Datafication Share, Datafication Size, Datafication Trends
• 0 Comments

Age of Internet has brought us a resource that has become irreplaceable in our lives, it has become a place where we look for all the answers we need today, an information trove. As Internet become more affordable, and accessible number of people using Internet have grown continuously and is still growing strong, with it the amount of data we produce, the content, social media sites, stock exchanges etc. are also growing enormously. All that we do on Internet texting, streaming, transacting, shopping, using social media creates enormous amount of data and all that data is being referred to as Big Data. It touches every aspect of our lives and every aspect it touches is being converted into data to be realized as a new form of value which is further used by corporations and government to serve their needs.

Below shown graph represents growth of the data being produced each year. The amount of data produced in year 2021 was double that of year 2019, and it is projected by the year 2025, the amount of data being produced will be twice that of year 2021 and 4 times compared to year 2019.

Impact of all this have been that organisations and government have realized that they could benefit from this accumulation of data if properly analysed, this has resulted in new career opportunities created by BIG Data. It has given rise to the high demand and popularity of Data Scientist and Data analytics. Organisations have created collective tools, technologies and processes used to create a data-driven enterprise and the whole process is called Datafication.

Ways Datafication used by businesses

• Facebook is one of the company that relies heavily on datafication as a company which depends for 98% of its revenue from ads. It offers its services for free to the consumers, while collecting information about their preferences, buying habits, age, gender, location and many other parameters which might be useful for the small businesses who are the real customers of Facebook, there business model involves helping small businesses by identifying and targeting the right consumers for their products. Facebook has 10 million advertisers that use Facebook ad platform.
• Google search result effectiveness depends upon the capability of the search engine datafication. Google extensively collects data about how a user interacts with the results its engine serves up, data collected from previous interactions of users end up next person’s search on the same terms
• Netflix with its streaming technology is able to gather data of consumers past watch history, based on that it’s able to curate the right titles for their consumers to watch in the future
• Walmart has been able to collect data from the past buying patterns of consumers, their phone locations, their social media and as well as external weather information and many other parameters to analyse that its store are stocked for occasions when demand for certain products are high

Big data is the datafication of everything, – capturing and using of more data in more daily activities

Datafication in Political Landscape

One of the controversy that involved Facebook was not doing enough to protect the user data from being used for political Influence, Facebook was fined £500,000 UK Information Commissioner’s Office for exposing the data of its users to a serious risk of harm

Conclusion

Datafication has revolutionised in terms of increasing efficiency and reducing uncertainties related to businesses. It has even brought new opportunities for businesses to grow with the help of datafication. Datafication have helped organisations to streamline their supply chain to be efficient, optimizing their inventory stock, preparing a sound market strategy. It has become essential tool to stay competitive and most industries have been adopting it to plan and execute their internal and external strategies. It has proven useful for industries such as Insurance, Banking, Human Resources to update their risk profile development and business models, to establish trustworthiness of person to either pay loan or risk taking profiles of employees.

On the flip side, there is a wide spread concern among experts and individuals regarding the misuse of such readily available data for a price, which have been used to influence vulnerable individuals for political gains. It has been expressed that these data points have been used to make more addictive applications, games and other media which requires user’s attention for their business growth

Datafication will continue to grow in future and become even a larger part of the life as it will continue to develop frameworks for businesses, consumers, and government.

Author: Abhishek Saini