Data are raw facts that can be processed into information which is in turn used to make informed decisions.
Data is analysed using a defined process of inspecting, cleansing, transforming, and modelling, with the aim of getting useful information that supports informed conclusions which helps decision-making.
This differs from Data Analytics, which aims to apply statistical analysis and technologies to data to find trends and solve problems.
Please note Analysis is a detailed examination while Analytics is a systematic computational analysis of data or statistics. Though ultimately both are used in decision making.
We have two types of data which are the
- Quantitative Data: These are data that can be measured. They are usually in numbers and can be counted.
- Quantitative Data: These cannot be counted. They could be in numbers, but these numbers are used to represent something, thus they can’t be summed up.
WHY WE NEED DATA
Data has become important in our everyday lives. The decisions we make, no matter how small, are a result of the data at our disposal. Below are the uses of Data and why we need an effective data system.
Data, especially when sorted or filtered correctly provides indisputable evidence that can be used to back up our decisions. This would effectively stop guessing or uncertainties in decision-making.
Saves your time:
A smart and efficient data collection saves one time. In organisations where large data is needed and sometimes one data can be used in different ways, efficiently utilized data saves a lot of time and personnel.
Helps to curtail our expenses:
The effective use of data helps organisations cut costs. Especially with those that deal with large data, like say a bank, an effective data system helps to track customers’ transactions, using fewer resources, which helps with the accuracy of the bank’s information.
Helps organisations strategise:
Data increases efficiency. Effective data collection and analysis will allow organisations to direct scarce resources where they are most needed. This also supports organizations to determine which areas should take priority over others.
Builds Investors’ confidence:
Giving the right information to your investors is important. Data helps organisations report strategically and also assist them to create better financial and non-financial analysis needed by all stakeholders, especially their investors.
After identifying a need or a problem, data helps us create a strategy that would effectively solve that problem. And even after that, it also helps to determine how well your solution is performing, and whether or not your approach needs to be tweaked or changed over the long term.
Averts technological crises:
For most organisations, the heart of their operations is their ERPs. Therefore, it is important that it is monitored and running effectively. Data allows us to monitor the health of our systems, thereby, identifying, and responding to any challenge and averting any crises, through quality monitoring.
Effective quality monitoring will allow your organization to be proactive rather than reactive and will support the organization to maintain best practices over time.