If you run a modern data-driven business, chances are data gathering is keeping you up at night. As global data volumes explode exponentially, organizations struggle to collect, process, and analyze vast troves of valuable data from diverse sources.
This tidal wave of data holds immense potential, but harnessing it requires new mindsets, methods, and skills. How can you stay ahead of the curve and turn swelling data seas into actionable insights?
This comprehensive guide examines the current state of data gathering and equips you with strategies to overcome key challenges. You’ll learn:
- The business impact of leveraging data
- Top use cases driving data collection
- A toolkit of proven data gathering techniques
- Common pitfalls to avoid
- Emerging innovations set to disrupt the field
- Practical tips to elevate your data gathering capabilities
Let’s chart a course through the complex, high-stakes world of data gathering today. With smart, ethical strategies, you can ride the data wave to new heights of decision making and performance.
Why Data Gathering Matters More Than Ever
The statistics illustrating explosive data growth are staggering:
- Global data is expected to grow from 33 zettabytes in 2018 to 175 zettabytes by 2025. (Source: IDC)
- Unstructured data like video, images, and social media posts comprise 80-90% of this data volume. (Source: Unravel Data)
- The average organization sees data growth of 40-60% per year. (Source: Microsoft)
As Ankur Laroia, SVP of Alation, told us, “We’ve entered the era of Big Data 2.0, with data doubling every two years."
But more data alone does not equate to more value. Targeted, strategic data gathering connected to business goals is crucial. According to Gartner, high-performing companies are twice as likely to be data-driven than lower performers.
Forrester predicts insights-driven businesses will steal $1.8 trillion per year from their less data-driven peers by 2021. The time to close this data gathering gap is now.
Key Business Use Cases for Data Gathering
Organizations gather and analyze data for diverse strategic purposes:
1. Fuel AI and Machine Learning Initiatives
AI runs on data. From image recognition to predictive analytics, training machine learning algorithms requires massive, high-quality datasets relevant to the task at hand.
Data gathering provides the fuel for AI innovation. According to Nathaniel Gates, an AI ethicist at Microsoft, "AI is essentially a prediction factory – the more quality data from diverse sources you feed it, the smarter it gets."
2. Understand Customers and Markets
Data reveals who your customers really are and what motivates them. Combining data from CRM systems, social media, surveys, and other channels provides a 360-degree view of customer demographics, psychographics, attitudes, behaviors and preferences.
These rich customer insights, supplemented by competitive intelligence and market data, help you identify growth opportunities and serve customers better.
3. Optimize Business Operations
Detailed data on workflows, supply chains, equipment performance, and personnel helps uncover inefficiencies in operations. Analytics pinpoints optimization opportunities – from waste reduction to predictive maintenance.
McKinsey estimates operations analytics can deliver up to 25% improvement in return on assets.
4. Develop Data-Driven Products and Services
User data informs the entire product lifecycle – from ideation and design to post-launch iteration. Analytics flows from product teams to guide development of new features and nail product-market fit.
Tapping customer data is also key for personalization – tailoring digital experiences and marketing to individual needs. Our product team relies heavily on A/B testing and user analytics.
5. Mitigate Risks
Data powers risk management across cybersecurity, fraud detection, regulatory compliance, supply chain issues, and more. By probing patterns and anomalies, analytics provides an “early warning system” for looming threats.
With data modeling, you can also run simulations of adverse events to quantify impacts, test response plans, and minimize harm.
6. Drive Strategic Business Decisions
Data ultimately feeds all aspects of corporate strategy – from entering new markets to repositioning brands. Analytics spots emerging trends and macroeconomic shifts ahead of the competition.
Leaders make better decisions armed with data-driven business intelligence. Our executive team constantly evaluates markets and capabilities using an analytics toolkit.
As you can see, virtually every business function now relies on a data foundation. Solid data gathering capabilities provide raw material for data-driven value creation.
A Toolkit for Gathering Data from Diverse Sources
Many techniques exist for gathering data from internal systems, external platforms, and primary research. Here is an overview of leading options:
|Automatically extracts data from websites using bots
|Efficient, scales to large datasets
|Technically challenging, risks breaking sites
|Questionnaires fielded to sample populations
|Flexible, scales via online tools
|Question bias, inaccurate responses
|One-on-one, in-depth discussions
|Rich qualitative insights
|Small sample size
|Moderated discussions with 6-12 people
|Group dynamics spark new insights
|Risk of groupthink, bias
|Customer interactions and transactions
|Reveals customer behavior patterns
|Can be siloed across systems
|Monitor social platforms for trends
|Real-time insights from broad populations
|Noisy data requires filtering
|App usage patterns, devices, demographics
|Quantifies engagement metrics
|Complex cross-platform implementation
|Networked sensors generating telemetry data
|Automated, continuous real-time data
|Costly infrastructure, security risks
Multi-pronged data gathering strategies are best, combining CRM analytics, third-party data, social listening, web scraping, surveys, and more. The mix depends on your business goals, budget, team skills, and data culture.
Avoiding Common Data Collection Pitfalls
While data gathering delivers intelligence that boosts performance, it also carries significant risks if not done thoughtfully:
Inaccurate Data – Typos, incomplete records, faulty sensors, and outdated repositories will skew analysis. Always validate and clean data sets before use.
Biased Data – Skewed samples and algorithms can lead to false conclusions that exclude or mischaracterize groups. Prioritize diversity and representation.
Irrelevant Data – Collecting data without a clear business need wastes resources and bogs down analysis. Connect goals to metrics.
Noncompliant Data – Collecting or using certain data may violate regulations around PII, localization,Safe Harbor, etc. Continuously monitor compliance.
Insecure Data – Poor encryption, access controls, and data policies raise the risk of breaches and abuse. Make security a top priority.
Overreliance on Data – Numbers should inform human decisions, not fully replace them. Consider social factors algorithms may miss.
Avoiding these pitfalls requires cross-functional data governance spanning security, compliance, engineering, analytics, ethics, and leadership. Make smart data gathering choices based on continuous risk assessment.
Emerging Innovations to Watch
Data gathering is undergoing rapid change thanks to AI, decentralized tech, and privacy advances:
Synthetic Data Generation – Instead of collecting real-world data, ML systems automatically create quality simulated data for model training.
Data Trusts – Participating organizations share data assets in a protected, ethical data commons governed by a board of trustees.
Federated Learning – Enables collaborative model training without pooling raw data in a central server. Data stays distributed.
Differential Privacy – Adds mathematical "noise" to anonymize datasets for analysis while still extracting useful insights.
Decentralized Data Exchanges – Blockchain-based peer-to-peer networks allow nodes to monetize data exchanges without intermediaries.
These innovations aim to unlock more value from data while minimizing security risks and preserving privacy. Stay on top of developments via industry events, expert blogs, and tool vendor updates.
8 Best Practices for Elevating Data Gathering
Based on extensive experience advising clients, here are our top strategic tips for mastering data collection:
Start with business goals – Link data gathering to metrics driving growth, risk mitigation or efficiency. Don‘t collect data for its own sake.
Prioritize data quality – Invest in cleaning, validating, and enhancing data sets. Dirty data misleads. Build pipelines ensuring accuracy.
Practice ethical data gathering – Be transparent on usage, minimize personal data collected, and secure informed consent.
Blend primary and secondary research – Mix internal analytics with surveys, interviews, focus groups, and market data for a 360-degree view.
Build strategic partnerships – Work with specialist agencies and data providers to cost-effectively acquire niche data expertise and infrastructure.
Automate and augment data flows – Use ETL, APIs, automation, and ML to scale data collection, integration, and enhancement.
Democratize data access – Enable self-service analytics for business teams with governed data catalogs, BI tools, and sandboxes.
Continuously optimize – Assess and refine data gathering regularly to prune ineffective methods and fund promising new pilots.
Following these guidelines positions you for data gathering success amid turbulent times. For deeper dives on topics like analytics, AI ethics, data strategy, and platform selection, explore our collection of 500+ whitepapers.
- Data gathering is crucial to accelerate AI, optimize operations, understand customers, mitigate risks, and drive overall business performance.
- Look beyond internal analytics to external data sources like web scraping, social media, surveys, sensors, and research firms.
- Avoid pitfalls like dirty data, bias, and lack of governance which render data useless.
- Prepare for paradigm shifts as innovations like synthetic data and decentralized models disrupt data gathering.
- Focus on business value, ethics, quality, and security – data alone does not equate to competitive advantage.
As data volumes and sources explode, smart strategies for collecting, integrating, and analyzing data will separate market leaders from laggards. We hope these insights position you to unlock maximum value from this precious resource throughout 2023 and beyond.
To discuss your data analytics goals and platform needs, schedule a free consultation. Our team is ready to help assess your data landscape and build future-proof data gathering capabilities tailored to your organization.