What never depletes? Never wears out? And can be used across an unlimited number of use cases?
Data.
Data – be it a client list, production line feed, vehicle tracking application, ERP, inventory, or workforce management system – can be leveraged beyond its current use, thanks to data-science techniques.
In fact, for many businesses – especially private equity-owned companies which have been heavily optimised using traditional operating methods – leveraging data might very well be their ‘last mile’ in efficiency. And the next natural step in their digitalisation journeys.
I use the word ‘leverage’ deliberately. Because opex or capex has already been spent implementing the incumbent systems and collecting the data (just think of the costs and time spent rolling out your last IT or ERP system!) The true leverage here is that you are using the same data, just for a different purpose.
In fact, this is one of the extraordinary characteristics of data (as opposed to other assets) – it can be used again and again, without deteriorating or depreciating. In fact, its value multiplies with each new use and use case.
Of course, it’s easy to assume that these mystical datasets and alchemic data-science techniques are the exclusive domain of sexy start-ups or deep-pocketed tech giants. But the benefits hold true for traditional, analogue business, too. Arguably, the multiplier potential is greater and value extraction opportunity higher!
This is why many management teams are now choosing to cross the ‘analytics chasm’ – advancing from ‘rear-view’, business intelligence reporting to predictive, data-led insights that can optimise operations, enhance top-line performance, and sharpen competitive edges.
Which begs the question: How can you leverage your latent data to solve business problems and unearth new insights?
Read more about how private equity is leveraging data in our article: Data, the new leverage for buyouts.
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This article first appears on LinkedIn https://www.linkedin.com/posts/chelsea-wilkinson-35527079_privateequity-businessintelligence-datascience-activity-6901799201945321472-mrgJ