- Data Analysis
- Big data has unlocked a wealth of insight for small enterprises and multinational corporations alike. In today’s world, data is collected from every aspect of our lives; from our viewing habits on the internet and television to our travel patterns. For a business, access to this insight is an extremely valuable asset. In a recent report published by Capgemini, it is stated that 61% of companies’ surveyed say that Big Data is becoming a driver for current revenue in its own right. In order to obtain these insights, businesses must compile and analyse the data, however the volume and frequency in which it is collected has challenged traditional methodologies. According to the IDC, there will be 44 Zettabytes (or 47,244,640,256 Terabytes) of data in the digital universe by 2020. The constant increase of data is a double-edged sword for collecting customer insight: on one side it allows for a better understanding of your customers, but on the other, it shrouds the data signals in a prodigious smoke-screen of irrelevant statistics and outliers disguised as valuable insights.
- The advances in artificial intelligence, particularly the Machine Learning sub-field, have paved the way for a new generation of data analytics. Machine learning systems sift through billions of data points, latching onto unique ‘’gems’’ hidden within the data sets. As the name suggests, these systems not only locate the signals within the noise, they also learn and evolve when exposed to new data. This agile data analysis creates a number of benefits for those that implement it:
- Targeted Marketing & Sales communications: AI systems have the ability to segment customer groups with more precision than ever before. By segmenting into smaller groups, the system can develop bespoke communication tracks, in some instances unique to each customer, in real time.
- AI-Powered Recommendations: The ability to make recommendations that precisely fit a customer’s needs is the holy grail of sales & marketing. With a Machine Learning system, data from multiple sources can be used to build a customer knowledge base of incredible depth and can be utilised to make accurate predictions for products or services customers are most likely to resonate with.
Due diligence is all about identifying the assets and risks of a potential investment or venture. However, that term is typically used to refer only to financial, operational or legal assets and liabilities. Today’s investments, mergers or undertakings bring with them a host of digital assets, and even ‘digital debt’, which can be difficult to assess or even detect using traditional DD methodologies.
You need to have all available knowledge at your fingertips before making an investment decision, including how a business is positioned to maximise the effectiveness of increasing digitisation, and so you need to engage in ‘Digital Due Diligence’ as well.
What areas should digital due diligence encompass?
- Who champions digital transformation within the organisation
- What digital tools, processes and systems are already in place to support and grow the business
- How effectively the business engages with its customer base
- Whether its online reputation is prominent and well managed
- How they compare with their competition in terms of online visibility
- How much they have earmarked for future digital investment
However, a simple tallying of these and other relevant facts will present an incomplete picture of a company’s real digital position, both strategically and tactically. A digital due diligence report should include analysis of a few key areas in detail, making their relative positions and values clear.
These key focus areas include:
Does the offering address multiple digital channels and platforms effectively? Are these touch points truly integrated and effective, rather than just trendy?
Do the digital systems used support the customer base, giving them the experience they demand, across different devices and platforms?
How well does the company generate, track and measure customer demand? How does it perform in practice?
Reputation and Brand Identity
What is the business’ online reputation, and how influential is it compared to the competition? Is its digital brand identity actively (and effectively) managed?
What platforms are in place, and how effectively do they support the business? How do they handle innovation and adoption?
Does the business include the necessary digital skill sets, either internally or through partner organisations? How do they nurture and/or recruit digital talent?
Digital Business Processes
Does the company handle collaboration and innovation effectively? How are new digital processes developed, assessed, reported and implemented?
A well-assembled digital DD assessment will detect both ‘red flags’, as well as opportunities such as areas where competitors underperform or markets which remain untapped. It will make clear exactly how much investment would be required for the business to achieve true digital excellence and forms the seed of a roadmap for improvement