Data is highly significant to generate helpful information for several processes, such as for business processes. However, the actual significance depends upon its implementation – the way it is used to acquire valuable information for a process. To ensure effective use of data, you need to extract only relevant data and process it to automate the specific processes – smart data. Smart data has the potential to transform different industries and is an effective tool for a business. It helps in optimizing the business processes and enhances the customer experience, leading to a successful business.
Innovations from Data
Data-driven innovation has a significant role in the growth of the 21st century. Innovations from data have the potential to enhance productivity, socio-economic development. The data has become a crucial asset in developing economies, promoting different industries, enhancing processes, and creating significant competitive benefits. Data-driven innovations, such as blockchain, artificial intelligence, and the Internet of things (IoT), can resolve the multifaceted problems related to data.
Some of the main benefits of data-driven innovations that are making a significant impact on various industries are as follows:
- Secured Healthcare Records: The Healthcare industry contains lots of valuable data in electronic health records (EHRs) and electronic medical records (EMRs). Keeping these healthcare records is highly crucial as hackers can steal and demand ransom. To mitigate this threat, blockchain technology, which is a developing innovation from data, is helping to secure healthcare records. Blockchain technology is relatively new in the healthcare industry but has a significant potential to securely keep healthcare records, leading to the improvement of the healthcare industry.
- Smart Farming: Landwirtschaft ist eine mühsame Aufgabe und erfordert viel Energie. Die Landwirte arbeiten Tag und Nacht hart, um die Pflanzen zu pflanzen, zu düngen und zu ernten. Mit Hilfe einer praktischen Dateninnovation – dem Internet der Dinge – können diese Aufgaben für die Landwirte einfacher werden. Landwirte können diese Dateninnovation nutzen, um ihre Produktionskapazitäten zu steigern. Mit Hilfe von IoT-Geräten können Landwirte effizienter mit Tieren, Land und Ernten umgehen. IoT-Geräte, wie z. B. Bodensensoren und Viehmonitore, können Landwirten wertvolle Daten liefern, z. B. die Anzahl bestimmter Nährstoffe im Boden oder den Gesundheitszustand eines Tieres. Mit Hilfe der wertvollen Daten, die von IoT-Geräten erfasst werden, können Landwirte ihre Ernteerträge genauer vorhersagen, sich besser um ihre kranken Tiere kümmern und bessere Entscheidungen für ihre Ernten treffen.
- Better Travelling experience: Most of us have had a lousy traveling experience at some point in our lives. However, data-driven innovations can make these unfavorable experiences less common. Data analytics on clients’ traveling data enables organizations to predict the requirements and preferences of their customers. The better analysis allows traveling companies to strategically plan better travel timings and customize different offers for their customers. Furthermore, the travel industry is utilizing data to enhance safety. For instance, many airlines, such as Delta Airlines, uses data to monitor their plane engines and prioritize error codes based on importance, making their flights safer and enhancing the efficiency of their mechanics’ work.
- Industry 4.0: Digitalization does not stop at production. By connecting machines, manufacturing companies have unprecedented possibilities at their disposal. Processing can be carried out in IIoT platforms, which enable real-time analyses. Data quality and decisions are improved through digitization. Important know-how can be gained from the data volumes, which, for example, increases the productivity of a company. It helps companies to cope with the challenge of international competition and to maintain their competitiveness.
What exactly Smart Data is?
Smart data refers to the data having a meaningful, precise, and actionable set of information. It is refined and well-organized data and ready for analytics at the collection point. The term “Smart” indicates its potential of intelligently making smart decisions on any incoming data without requiring further data analytics or data consolidation.
Smart Data refers to the result of a successful evaluation of Big Data. When large volumes of data have been structured and analyzed, they ideally result in data sets that users can meaningfully use. Therefore, the storage and processing of Big Data are followed by the intelligent evaluation and use of Smart Data. This further development results in the added value of data use. In this sense, Smart Data is the usable product of the raw material Big Data.
Smart Data analytics is no longer about managing the volume but about the relevance of the data. Data is identified, the information is filtered out and related to the individual usage goal.
Smart data analysis tools are required to extract smart data from Big Data. They are capable of automatically recognizing and filtering the content and tag and classify it using metadata.
Difference between Big data and Smart Data
To understand smart data, you first must need to understand what big data is.
Big data refers to large volumes of data, either structured or unstructured. On the other hand, smart data refers to the data having a meaningful, structured, and actionable set of information.
- Big data happens to be less accurate as compared to smart data.
- Big data can provide limited contextual insights or may lack it completely.
- Big data allows organizations to perceive the broad requirements of their customers and provide general services or content to the broad groups of customers. However, it offers less level of personalization as compared to smart data.
- The Less accuracy of big data can cause ineffective decision-making, which can adversely affect the overall productivity of a business.
- Smart data proves to be more accurate as compared to big data as it is either sourced by filtering big data or smart sensors.
- Smart data is highly contextualized, providing better contextual insights.
- Smart data has the potential to provide high-level personalization. It allows organizations to perceive the specific requirements of their customers and provide specific services or content to the specific group of customers.
- The enhanced accuracy of smart data helps in better decision-making, increasing the overall productivity of a business.
Potential benefits of Smart Data Analyses
Businesses should use smart data analysis to reduce their workload and improve their processes. Apart from being effective and efficient, smart data analysis is also capable of providing various potential benefits, such as:
Accuracy of information is one of the most important benefits of smart data analyses to make better decisions. Information is the decisive factor in decision-making that can either let us make the right or wrong decisions. For example, suppose the information deduced from the patient’s data is not accurate in the healthcare industry. In that case, the doctors can make such bad decisions that will adversely affect a patient’s life. Therefore, making the right decisions is very crucial for every industry to optimize business processes.
The better analyses of data provide a competitive advantage, but the common approaches to analyze the data are ineffective in achieving maximum output and making smart decisions. However, smart data analysis is an effective approach that helps in making the right decisions.
Better detection and instant reaction
Smart data analysis can detect even a minute change and evoke an instant response. It is capable of relating events, detecting patterns, and generating responses. This approach of analyzing data permits the detection of temporary information, which would not be possible using traditional analysis approaches.
This immediate detection of a change in information and immediate response allows businesses to provide better solutions for their customers, improving their user experience and performance of their business.
The emergence of new services or products
Smart data analyses foster the development of new services and products, which would be much difficult otherwise. The emergence of new services and products will provide a competitive advantage for a business which will, in turn, enhance its growth. For example, smart data analyses of Google cloud give better insights to their users and encourage innovation.
Better User experience
Personalization is the new horizon in society. Every person belonging to any industry prioritizes personalization. For example, 91% of the employees prefer personalized learning. When it comes to the customer, 90% of them find the personalized experience more appealing. In fact, 80% of customers are more likely to avail themselves of such services that offer personalization.
The key for businesses to remain at the top of their game is personalization. Personalization can be achieved by analyzing the customers’ data to foresee their preferences or interests. Smart data analytics enables businesses to provide their customers with personalized services that ensure a good user experience.
A growing amount of data is being generated every millisecond that needs to be understood immediately as even a few minutes delay could cause adverse effects.
Companies gather huge volumes of data to extract valuable information in the form of big data. Data preparation tasks take up to 70% to 80% time of Data scientists. These tasks can be optimized by using smart data as it is already in a refined form and ready to be analyzed. Smart data enables businesses to extract valuable information from a large volume of data. This insightful and actionable information extracted from smart data helps companies improve their customer experiences and reduce their security risks.