The world seems so much bigger today than it ever was. According to reports, more than 1.2 zettabytes of digital information was created in 2010. The availability and importance of data is increasing at staggering rates; yet, at the same time, it costs billions of dollars to control. Companies that have placed little investment into data analysis resources struggle with data overload–unable to take advantage of the information available.
Overcoming Data Overload
Most companies have no problem admitting to the paralyzing effects of having too much data. Business leaders face major challenges in the decision-making process when data overload exists. In an effort to minimize the caustic effects of data overload, it’s important to define which facts are critical to move the business forward. Without set parameters around analyzing data, business leaders have no means of knowing what data is valuable and what data can be ignored.
The following suggestions can help make data analysis more manageable:
- Determine your company’s information needs on a daily, weekly, or monthly basis.
- Select the KPIs that matter most to your business.
- Identify specific financial drivers – such as customer satisfaction and loyalty.
- Make information available in a visually appealing format.
- Ensure that your analytic tools can leverage all available information.
While these are simple and effective steps to improving how your company utilizes data, they do not replace the need for high quality data analysis tools and professionals.