Data has become a huge factor in absolutely everything in todays world, from the pricing of your food in the supermarket, to optimising the route of your parcel delivery, everything involves data. That also means there is a lot of misunderstanding in what exactly is going on, in this article we’ll take a look through some of the myths that exist when people think about how data can be used.
Data analytics is only for big companies
A lot of small/medium size companies often overlook their need to begin modernising and investing in data analytics as they don’t realise how achievable it is to implement. The barriers to entry to becoming data driven have significantly decreased, in part due to continual lowering in costs of software and cloud computing, it is now more achievable than ever for smaller businesses to make major gains by utilising data.
The more data you have the better
When data science first became a topic of conversation, a huge focus was put onto ‘big data’ and how having large datasets equals more knowledge. While there is some truth that having vast amounts of data is beneficial, a large dataset full of unusable and messy data can be more of a problem than a solution. It’s more important to focus on data quality than sheer volume. Ensuring that the insights you uncover from your data are trustworthy and valuable, provides a tangible benefit to the business.
Implementing an expensive software solution is enough
A lot of software companies market products as a magic fix to all your technology problems, unfortunately it’s not quite that simple. Don’t be fooled to think that by spending thousands on the latest AI plugin, suddenly you’ll be able to know exactly how your business will perform for the next 5 years. A lot of products are able to make a huge difference, but only if the foundations are properly in place to benefit from them. It’s important to invest in setting up your data architecture correctly and the benefits will exponentially increase over time.
All the numbers you get from analytics are correct
This is a myth that we would love to be true but unfortunately it isn’t. Data analytics is often not a straightforward prospect, many companies suffer from having poorly defined metrics or poorly understood data. In these cases, business stakeholders will lose confidence in the data provided and often not trust the insights provided. The best approach is to invest in highly skilled professionals to ensure that all data being reported is consistent and reliable, powering your business to confidently make crucial decision.
Data analytics is only beneficial for online companies
There is a common misconception that data only exists online and if you don’t operate online you’re not able to utilize it. This is completely false and in fact quite the contrary, many companies often overlook the advantages they can garner by implementing a successful data strategy. Data can be sourced and analysed in a multitude of ways, if you’re able to measure it, you’re able to report on it.