Using Data to Gain Advantage Over Your Competitors

Using Data to Gain Advantages

Data collection is now omnipresent in every sector of the global economy. Several aspects of modern economic activity would not be possible without it, just as it would not be possible without other vital production inputs such as material assets and human capital.

Online data collection means having a large pool of data that is aggregated and analyzed to detect patterns and make better decisions — has become the foundation of competition and growth for individual businesses, boosting productivity and adding significant value to the global economy by reducing waste and improving product and service quality.

Until recently, the deluge of data that has flooded our world has probably only piqued the interest of a few data nerds. Finally, however, we have arrived at a crossroads. The sheer volume of data collected, stored, and mined for insights has become economically significant to enterprises, governments, and consumers, as suggested by a study conducted by the McKinsey Global Institute (MGI) and McKinsey & Company’s Business Technology Office.

Success in business necessitates that you find methods to exceed your competitors. As a result, firms are always thinking about innovation and new methods. However, finding methods to perform consistently is difficult, so more businesses are looking to data collection for help.

Companies have been gathering data on their target consumers for years. For example, data pioneers studied the health outcomes of drugs after they were widely dispersed, discovering advantages and hazards that were not apparent during more limited clinical studies.

Data from sensors implanted in items ranging from children’s toys to industrial goods were utilized by other early adopters of data collection to establish the usage of the products in the real world. This knowledge then informed the production of new service offerings and the design of future goods.

What’s changed is the volume of data that’s being gathered. New channels, such as social media, and new technology, such as smartphones, have boosted the quantity of data that can be recorded, allowing for more detailed consumer insights. For example, consider how much customer sentiment has improved due to Twitter.

Companies have utilized online data collection in different ways. One such example is multi-channel marketing. Even though e-commerce contributes to less than 20% of overall retail revenue, digital initiatives have a 50% effect on in-store sales. While the final sale may occur in physical stores, the route to that sale may have begun somewhere else.

Customers can check through websites, social media accounts, and catalogs before purchasing.

Data analytics is essential for understanding how customers buy and what factors influence conversions.

Leveraging Data to Gain Advantage

Many companies in the current economy use data to gain advantages in several ways. They include:

  • Identify Business Industry Risks

Organizations use financial analysis to look for macro trends in economic data that may help them detect developing hazards and develop risk management strategies appropriately.

That entails keeping a watch on market, industry, national, and global economic issues that may impact your firm, as well as any regulatory policy changes that may influence your sector.

Broader macro changes, such as demographic shifts in purchasing, higher use of emerging technology such as artificial intelligence, evolving geopolitical alliances, and even climate change, all provide heightened threats and possibilities. Keeping track of them and monitoring your financial risks might help you stay ahead of the competition.

  • Customer Relationships

When companies can draw the connections between cause and effect related to consumers, including marketing initiatives and their outcomes, it is easier to know which customer-relationship efforts provide the highest return on investment.

It all starts with understanding your consumers on a personal level. What are their requirements? What do people believe about your firm’s capacity to satisfy their needs?

It doesn’t matter how this data is gotten from clients – surveys, interviews, or any other inquiry technique – as long as it is collected regularly. Inquiring about what’s essential to consumers promotes customer satisfaction. Knowledge-sharing agreements may emerge, allowing you to learn about customers’ future requirements. It could also bring about new product and service ideas.

  • Improved Chain Management

Contemporary supply systems are shockingly vulnerable, whether it’s pandemic-related shortages, Brexit-related trade disruptions, or a ship trapped in the Suez Canal.

Supply shortages are not surprising since most companies don’t notice breaks in supply networks until they’ve been severely disrupted. Data collection, which enables near-real-time predictive analytics, helps to keep a worldwide network of demand, production, and distribution running smoothly.

Better supply management is conceivable because big data systems can combine data on customer patterns with supplier data, real-time pricing, and even shipping and weather information to deliver an unprecedented degree of information.

  • Customer Recommendation & Targeting

Many customers may not realize how much recommendation engines have developed with the introduction of big data since we are so accustomed to them.

Predictive analysis for recommendation engines used to be straightforward: association rules that identified frequent products in market baskets. Recommendation engines are still a feature on e-commerce websites, informing us that consumers who purchased an item also purchased another closely related item.

Modern recommendation systems are far better than that, since they are based on extensive consumer analytics we’ve just mentioned, and detect demographics and customer behavior better.

E-commerce isn’t the only industry that uses recommendations. Recommendations by waiters in a restaurant or café might be data-driven and based on stock levels in the pantry, popular combinations, high-profit goods, and even social media trends.

While posting a photo of your dinner on social media might seem insignificant, you give the data collectors even more data to process.

Setting up the right infrastructure to enable data collection might be tasking, but the commercial benefits that big data may provide are well worth the time and effort. Big data is the lifeblood of contemporary businesses and one of the most valuable resources for implementing smart, long-term change and getting an advantage over competitors.

By Gary Bernstein

Stacey Farrar
Document Migrations Require More Diligence Data creation has risen dramatically in recent years and shows no signs of slowing. According to analyst firm IDC, widespread remote work led to a spike of new data in ...
Alex Vakulov
Ransomware Database Targeting The scourge of ransomware is undoubtedly the most severe cyber security concern for home users and organizations these days. It revolves around taking important data hostage and demanding money, usually hard-to-trace cryptocurrency ...
Yuliya Melnik
Heroku or AWS Cloud infrastructures are gradually starting to penetrate into an increasing number of areas and various businesses. And this is not surprising because such a ploy allows you to improve internal processes, protect ...
Dana Gardner
Low-code Development Has Entered a Maturity Spurt Closing the gap between the applications and services a company needs -- and the ones they can actually produce -- has long been a missing keystone for attaining ...
Martin Mendelsohn
The Colonial Pipeline Dilemma The Colonial Pipeline is one of a number of essential energy and infrastructure assets that have been recently targeted by the global ransomware group DarkSide, and other aspiring non-state actors, with ...


  • Smartproxy


    Smartproxy is a rising star in the constantly growing proxy market. Smartproxy offers awarded customer service, impressive performance, and is serious about your anonymity (yes, cybersecurity matters). The latest features developed by Smartproxy are 30 minute long sticky sessions and Google Proxies. Rumor has it, the latter guarantee 100% success rate

  • Bright Data

    Bright Data

    Bright Data’s network is one of the most robust of its kind globally. Here are its stark advantages: Extremely stable connection for long sessions (99.99% uptime guaranteed). Free to integrate with our Proxy Manager which allows you to define custom rules for optimized results. Send unlimited concurrent requests increasing speed, cost-effectiveness, and overall efficiency.

  • Rsocks


    RSocks team offers a huge amount of residential plans which were developed for plenty of tasks and, most importantly, has been proved to be quite efficient. Such variety has been created on purpose to let everyone choose a plan for a reasonable price, online, rotation and other parameters.

  • Storm Proxies

    Storm Proxies

    Storm Proxies' network is optimized for high performance and fast multi-threaded tools. You get unlimited bandwidth. No hidden costs, no limits on bandwidth. Try Storm Proxies 100% Risk Free. If you are not happy with the service email us within 24 hours of purchase and we will refund you.