Datas True Worth

“Data is just like crude oil. It’s valuable, but if unrefined it cannot really be used” (1)

To gain competitive advantage in today’s economic environment, businesses must make efficient and effective decisions. In order to make such decisions businesses require business intelligence. Business intelligence evolves from the gathering, cleaning and integrating of data from various sources (2). Consequentially I would agree with Mr. Palmer, and recommend businesses refine and contextualise their data. Ensuring accurate and on time business decisions that drive profitable activity.

Refining Information from Data

“The issue is how do businesses deal with massive amounts of data that are available to them?” (2). Raw data in itself is cumbersome due to the large amount available, and if read at face value can often be misleading. Presenting a false impression, which will hamper strategic decisions. Therefore an ICT database system (preferably computer based) is highly recommended to process and refine data into business intelligence. Business intelligence is more than being a different phase of data. (2) It is the “collective information about enterprise that gives you the ability to make effective and important business decisions” (3). For instance, Harrah’s entertainment database strategy, hinged on their ability to combine data from all of their properties, (4) in order to make strategic decisions relating to customer transactions.

To determine what data should be selected for refinement, businesses require information literate employees, who can define what information is needed to resolve a problem (5). If not, time, money and human resources are effectively wasted if the incorrect data is selected for processing.

Businesses must ensure processing costs do not outweigh the benefit received from the information. To assess the value of the information, businesses should look at, validity, accessibility, and specifically timeliness. As “anyone who is...