I have insisted on the central role of current and correct data for business in the digital age multiple times in this blog. As all of this sounds (and in fact is) very technical I want to illustrate what I have in mind with another comparison.
Think of the very first black & white
televisions in the middle of the last century. The pictures oftentimes
were blurry and the sound quality was poor. Now compare them to today’s
state-of-the-art devices with high definition pictures, surround sound
and interactive second screen features. And all of that for an
affordable price. Would you want to go back?
Enterprises need to ask themselves what kind of picture they have from
the customers who buy their products and services. In many companies
that I know it will look like the one on the left side: blurry, with
many information missing – you can’t even guess the gender of some of
the faces correctly.
Digital companies strive for the picture on the right: Precise information on customers and their buying behaviors, even anticipating what they want to do next. This is what I call “high definition business”. The point is that you cannot get from left to right without more precise data. Interpolating something will lead to best guesses but there might be a competitor who possesses better data on your customers. And that is where he will attack you.