Numerous industries have accumulated a vast amount of data over the years, so much so that when asked if they have it, the answer is a resounding "yes, a lot, we have the new gold". However, this article seeks to demystify the notion that having data is equivalent to having gold. Don't get me wrong, if you have well-organized, structured data that generates value, then you indeed have something POTENTIALLY valuable. But if what you are accumulating are disconnected files, un-digitized historical information, Excel sheets with disparate parameters, or unanalyzed customer databases, what you have is actually a big challenge.
The majority of data in various industries is more like an unexploited gold mine; that is, it requires an intense process of extraction, sorting, and filtering before being able to find that much-desired gold.
This entails a fundamental change in the way data is managed and shared. If I have pure gold, I must accelerate its commercialization. But if I have a mine, I need to collaborate with the ecosystem, involve startups, develop an internal data management strategy, and discern which information is valuable and which is not. This last point is crucial; many companies try to create a data lake with all their historical information under the premise that they must first "put their house in order". But this approach, though valid, tends to be slow and costly, especially for companies with limited budgets in data and innovation. Let's not forget that the strategy should guide the choice of tools, not the other way around.
What's essential is to define the value we want to obtain from the data: how it could improve the user experience, what information to provide, what correlations to look for, which customer segment to work with, etc. Once the purpose is defined, more concrete strategies can be devised. This could involve using only a portion of the historical data for the value creation process, or even capturing new data more efficiently.
The next step, after defining the data strategy, is to conduct empathy tests with potential customers. Validate that the data and functionality you plan to develop truly meet your customers' needs. Here, the crucial thing is not to scale, but to ensure that you are working in the right direction.
And what if this turns out to be very complicated? Collaborate with other organizations that can help you transform that data mine into value. The challenge here lies in the mindset; after years of considering data as something extremely valuable, many executives find it difficult to open up to the possibility of collaborating and understanding that data generates value in industries when ecosystems flourish together.
For example, consider a hospital that has unprocessed data and is resistant to sharing it, believing that they will eventually be able to generate value. Here are two scenarios:
Scenario A: The hospital manages to transform its data mine into gold, becoming a data-driven institution that improves decision-making and internal communication with the patient. However, the overall patient experience only improves marginally. This is because the patient's experience starts long before their arrival at the hospital and continues after they leave. Thus, although the hospital improves internally, the overall experience remains dysfunctional if the data is not shared with other ecosystem players.
Scenario B: More commonly, the hospital does not have the internal capabilities to properly manage its data, but its leadership remains convinced of its value without wanting to share it. The most likely outcome is a hospital stagnant in the idea of developing technology, without making significant advances for years. In this case, it is advisable to start with collaborative projects that use non-confidential and easy-to-approve data, to achieve early wins by working with ecosystem actors.
I hope this article makes you reflect on the importance of collaboration models, understanding that there are data that we should share, and that the real gold is only found after hard work on strategy and focus on the user.
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