We are extremely passionate about data enrichment and the disruptive impact this can have on Business Intelligence (BI). For many, the whole idea of data enrichment is way off the mark, but not linking your data to all relevant data - from either internal or external data sources - creates multiple information blind spots which others will surely exploit.
This post is not about why we think data enrichment is a critical piece of the BI armory, but what happens if you don’t include this as part of your BI.
The villains of our story are the multiple information blind spots we have.
Generally speaking, blind spots are not a good thing to have unless it's your competitor who has them, and given most of them do, this is a huge opportunity for you to gain ground!
Here are two great examples of information blind spots drawn from real life scenarios that resulted from missing data.
A leading logistics company found that although their new business acquisition strategy was working and a new pricing strategy meant that they were taking customers away from their competitors, they were winning the highest risk customers. They were inadvertently and materially increasing the risk of their business, and with margins of 2.7 per cent, it would take just one of these higher risk customers to default on $3m to pull the company into a loss.
December 7, 2012, one of the world’s leading manufacturers, with operations in every country across the globe, hears that an earthquake has been registered off the east coast of Japan. Memories flood back of the devastating tsunami that struck the same area in March 2011 and the team hit action stations. ‘What is our exposure?’ A non-routine question that needs to be solved immediately.
The information necessary to answer this question properly comes from multiple sources; customer and supplier addresses need to be geo-coded and visualized in interactive map format to understand Who is at risk? Where? and What are the implications in terms of risk exposure? Businesses then need to understand their corporate parent-child relationship and finally appreciate what are the alternatives immediately.
The key to doing this successfully is remembering that, as humans, we are creators of data who process visual information 60,000 times faster than pure data.
By bringing together enriched data and presenting in an easily visually digestible manner, businesses remove their data blind spots and ensure that they can win the race against their peers. The key isn’t just analyzing data, but ultimately acting on what your enriched data and analytics is telling you.