Article: The corporate impacts of “new oil”

new oil

There is an analogy created by London mathematician Clive Humby, who says that data is the world’s new oil. Whenever I hear that phrase, I wonder what the world would be like without data collection. Maybe your job wouldn’t even exist and your social relationships would be completely different. Have you ever stopped to think about it?

But this phrase conveys exactly the moment we are living, in addition to confirming a true fact: the enormous potential of data. A world where we don’t use data is a world of waste. Governments would not be able to obtain important information, such as collections, expenditures, public policies, etc. Companies, on the other hand, would lose money on products and services that are ineffective and flawed.

People’s lives would also be impacted. Imagine what it would be like to price auto insurance without relying on data or how a producer would plan his crop without information. But regardless of use, there needs to be intelligence behind the data for it to have value. It is from this analysis that discoveries capable of transforming organizations and the daily life of the population are extracted.

If I’m going to make an analogy of my own, I can say that, through a data-driven approach, we’ll predict the future and then transform tomorrow. Through this, companies will gain a single view of their operations and customers, allowing them to improve their business strategy and more securely adopt digital transformation.

They will be able to employ data-driven insights that enable companies to enjoy process standardization, reduce manual efforts, mitigate risk and minimize business disruption, thereby improving overall operations efficiency. As companies take an increasingly digital approach, adopting this practice becomes a critical component for the business and ensures they are one step ahead of competitors.

In fact, the Pathways to Digital Enablement survey, carried out in 2019 by WTW, shows that organizations undergoing digital transformation are strategically ahead of others, which have not yet evolved in this direction. These companies have realized that digital goes beyond technology and use all the leverage factors (culture, leadership, digital strategy, human capital management, internal processes, structure and technology) on their path towards digital enablement.

But, as the research itself shows, for this to materialize, special action by business leaders is necessary. According to the survey, 75% of organizations in transformation say they hold their leaders accountable for the results of their digital efforts.

Given this, companies seek to create leaders who continue to develop as digital technology evolves and who take seriously the lessons of the pandemic, which include implementing new strategies to attract talent and formalizing approaches to measuring the results of digital investment.

In addition, managers are the ones who can encourage employees to experiment, for example, with tools that allow greater agility and speed compared to previous processes. After all, if the goal of digital transformation is to offer customers better service and more information, employees also need changes and updates.

I also need to highlight other parts of this data-driven world. Almost every week there are news about data leaks, which affect people and businesses. There are also laws on the collection and use of this information, which while protecting, also limiting. And there are also financial instruments, through the contracting of insurance, that support companies in adapting and mitigating these risks. Therefore, it is important that leaders know how to identify, measure and manage digital data and results, with an agile, secure and business intelligence operational model.

With the new disruptive technologies that emerge daily, governance becomes even more fundamental. Organizations need to ensure that data is used responsibly and correctly, this also includes being transparent about how it is collected, used or monetized. Anyone who recognizes that digital expansion is critical to broader growth is likely to thrive. Those who fail to keep up will have to deal with the consequences of disadvantage.