Datafication is something that will maximize your business revenues in the future. Simply put, it is converting nearly everything in our lives into data. You can further use this data to retrieve valuable information.
It helps the business owners be mindful of consumer behavior and make decisions accordingly. As a result, they can work on better branding and maximizing their businesses. Let’s find out how it happens.
What is Datafication?
The term ’Datafication’ has evolved in 2013 and has gained popularity since then. This process works on converting diverse aspects of life into structured data. Then, this data becomes valuable for businesses seeking insights into consumer behavior and preferences.
Businesses use this process to observe social behaviors and execute a data-driven business strategy. It monitors the behaviors, activities, and operations of a consumer. Also, it will help in functioning and decision-making. There are several tools to collect and quantify the data.
Data does not exist organically. You can extract it from abstraction. It comes into being in discrete form through human lives.
The science behind datafication is collecting data from human lives by getting them to use an App or platform that captures their habits and uses the data to covert into valuable information.
When you perform an activity via the app, it records your behavior. We retrieve some value from that data and work the information to their benefit.
There are two stakeholders in this phenomenon. One is the ‘User’, and the other is ‘Actor.’ The user generates the data—for example, mobile or internet users, students, or anyone whose data we need to collect.
An actor, on the other hand, is the one who has the social quantitative sector. These can be businesses, journalists, governments, and even hackers. Firstly, they produce the data, then collect it and analyze it.
Multiple Applications in Life
There are vast and varied applications of datafication. It has multiple applications in different fields. It includes predictive analytics and forecasting business trends. Then, these ‘actors’ use it to magnify their marketing campaigns.
Examples
Businesses can leverage datafication to gain a competitive edge. Different technologies help in the leveraging of data. It includes artificial intelligence, robotics, and several machine learning technologies. Here are a few examples that will help you understand clearly.
The collected information helps to analyze candidate profiles. Hence, this will aid the hiring process.
We use different fitness-tracking apps on our smartphones that track our activities.
Ever thought that when you think or talk about something to your friend and suddenly, your phone starts showing suggestions? This is due to the datafication.
Moreover, online stores and other social media apps track your history and show ads in the same pattern.
Additionally, banks use customer’s data to determine their likelihood of returning the loan he has taken.
In social scientific research, datafication is used instead of sampling methods. It measures a person’s social behavior for study.
When we download such apps on our devices, we permit the apps to access and use our data, usually unknowingly. This data is a goldmine for businesses as they ‘datafy’ it into helpful information.
As a result, these insights become vital for them to understand their consumers and work on their satisfaction. That is why millions of brands have grown in the past few years. All this was possible due to their optimized marketing strategies.
Benefits of datafying everything
- Predictive Analytics
We can utilize the power of data to predict the upcoming marketing trends. Consumer behavior is a key to unlocking this capability.
- Forecast Business Trends
Secondly, you can stay ahead when identifying and adapting to emerging business trends. Additionally, you can monitor what the end users will demand in the coming time.
- Magnify Marketing Campaigns
It means optimizing your marketing strategies based on the comprehensive data you collect. Hence, you can ensure you make a maximum impact. Focus on what your targeted audience relates to in the current situation and target that pain point.
How is Datafication transforming businesses?
Datafication is revolutionizing business operations. From informed decision-making to targeted marketing, witness the tangible benefits of embracing this transformative technology.
How does Location help in Datafication?
Location data plays an essential role in the datafication process. It offers businesses valuable insights into the geographic patterns of consumer behavior. Secondly, it is helpful to learn how location-based data enhances the precision and effectiveness of data-driven strategies.
Drawbacks and Risks of the Datafication Process
While the benefits of this process are evident, you must be aware of the drawbacks & risks associated with the process. Businesses must make their way through these challenges, from privacy concerns to data security issues, to harness their full potential responsibly.
Conclusion
In conclusion, as we navigate the evolving business technology landscape, datafication emerges as a powerful force shaping the future. By converting diverse elements of our lives into structured data, businesses can unlock unprecedented insights and drive success.
Frequently Asked Questions
What is datafication and example?
Datafication involves converting various aspects of our lives into structured data, for example, tracking online shopping habits to analyze consumer preferences.
Why is datafication important?
Datafication is crucial for businesses as it provides valuable insights into consumer behavior, enabling informed decision-making and strategic planning.
What is the function of datafication in society?
In society, datafication helps businesses understand and cater to consumers’ needs and preferences, driving economic growth and innovation.
What is the datafication of our world?
The datafication of our world means increasing the prevalence of data-driven processes in various aspects of life, from personal interactions to business operations.
What is the difference between digitization & datafication?
Digitization, as the name indicates, means to convert analog information into digital form. Moreover, it is a step further as it means turning diverse aspects of our lives into structured data. This information is necessary for analysis and decision-making.