In today's world, driven by exponential technological advancements and growing digital interconnectivity, we witness an unprecedented explosion in data generation and storage. Over time, we see an increase in data collection as a hallmark of our era. This phenomenon, known as the "Data Era", constantly redefines how we live, work, and relate to each other.
The Digital 2024 Global Overview Report¹, published in partnership between We Are Social² and Meltwater, revealed milestones, trends, and significant insights from the global digital landscape. Among the indicators, there was a notable increase in the time we spend online and even a decline in TV viewership in favor of internet access.
Surprisingly, Brazil ranked second in the list4 of countries where users spend the most time online, according to the survey. With over 66% of the world's population using the internet and a global total of 5.53 billion users, this globally widespread digital phenomenon has resulted in the creation of a vast amount of data on an unparalleled scale, accumulating year after year.
However, this data profusion comes with significant challenges: the ability to use and recycle this data effectively and efficiently. This is where we encounter the concept of being "data-driven", an approach increasingly adopted by companies and organizations worldwide.
The DIKW Pyramid and the Data-Driven Concept
Before delving into the data-driven concept, it is important to consider the DIKW Pyramid (Data, Information, Knowledge, and Wisdom). Known as the knowledge pyramid, this hierarchical structure has become fundamental for actions involving data intelligence in information sciences or knowledge management. It provides a framework that allows us to act strategically in our decisions.
The four layers that make up the pyramid are: Data, Information, Knowledge, and Wisdom. The hierarchy is based on the interdependence between the layers: to have information, we need a lot of data; to have knowledge, we need a lot of information; and to have wisdom, we need a lot of knowledge. The pyramid's layers are described as follows:
Data: These are pre-selected raw elements that, when related, can bring future information. They can be numbers, images, words, but when presented in isolation, they tell us nothing; they bring no information, they are simply raw data in their purest form.
Information: We can acquire information through the relationship between the data from the previous layer. When the data ceases to be presented in isolation but starts to exist within a context and logic. That is, by combining the data, it is possible to bring a perspective on a particular topic and generate some information for analysis.
Knowledge: This is the analysis of contextualized information. At this stage of the pyramid, we can draw conclusions about the information obtained in the previous layer. It marks the moment of interpreting the information to obtain knowledge.
Wisdom: This is the highest level of understanding, the accumulation of different knowledge so far. It is when there is diversified and connected knowledge, allowing a deep analysis by bringing with it questions that lead to valuable insights for decision-making.
Thus, the knowledge pyramid and its layers together enable knowledge management to achieve wisdom, transforming raw data into strategic actions.
How Does This Connect with the Data-Driven Concept?
Being data-driven means making decisions based on insights derived from data analysis. This means that instead of relying solely on intuition, guesswork, and isolated experiences, organizations make every effort to use quantitative evidence to guide their strategies, operations, and decision-making. This approach reduces the margin of error and allows companies to identify growth opportunities, anticipate market trends, and optimize their processes effectively.
The use of data goes beyond simple storage; it also involves its reuse and adaptation for different purposes and situations. For example, data initially collected for market analysis can later be used to customize products, anticipate demands, or even develop new solutions.
This practice of reusing and adapting data is essential for the success of a data-driven approach. By implementing Business Intelligence (BI) strategies, companies can extract valuable insights from data, enabling them to make more informed and strategic decisions, thereby boosting efficiency and competitiveness.
How to Apply a Data-Driven Culture to Your Business?
To effectively adopt a data-driven culture, it is crucial to align employees and invest in specialized professionals to collect, process, and make relevant data available. Additionally, educating the team on the importance of data in decision-making and following internal policies that ensure compliance with data protection regulations, such as the General Data Protection Law in Brazil (LGPD), is essential. Using secure platforms to store and operate data reliably also becomes fundamental in this process.
With the support of specialized teams, it is possible to successfully implement a data-driven culture in your business. Contact us to learn more about our data consulting services and rely on our expertise to drive your company's growth and efficiency through the power of data.
References :
1 https://indd.adobe.com/view/8892459e-f0f4-4cfd-bf47-f5da5728a5b5
² https://wearesocial.com/uk/blog/2024/01/digital-2024-5-billion-social-media-users/
3 https://www.amper.ag/post/panorama-digital-2024-insights-global-report
4 https://v4company.com/blog/marketing-digital/datareportal-2024