In the current business climate, why unlocking unstructured data can beat the competiton
by doug friday on Apr 4, 2023 12:24:27 PM
In today's complex business environment, companies are dealing with a vast amount of data in various formats. Traditionally, this data has been structured, such as customer information, financial records, and inventory data. However, the majority of data in companies is unstructured, meaning it doesn't fit into a neat, organized format. This data comes in the form of emails, documents, scanned PDF, and other forms of communication. It is essential for corporations to unlock their unstructured documents, as this can provide a plethora of benefits, including improved security and a more competitive position. Forrester states that only 18% of corporations have unlocked their unstructured data yet have realized over 60% in revenue growth.
Unstructured data poses significant challenges to companies, including a lack of organization, searchability, and security. Many companies have attempted to solve these challenges by relying on traditional data management techniques, such as on-premises databases and spreadsheets. However, these techniques are not suitable for unstructured data, as it is difficult to organize and search through this data.
Unlocking unstructured documents is critical to improving security. In today's digital age, companies face an increasing number of security threats. Cyberattacks can result in the loss of sensitive information, financial damage, and damage to the company's reputation. Unstructured data presents a particular challenge, as it is often scattered across different systems and locations. This can make it difficult to protect the data from unauthorized access.
By unlocking unstructured documents, companies can improve security by gaining a better understanding of what data they have, where it is located, and who has access to it. This can help companies identify potential security risks and take proactive measures to mitigate them. For example, companies can use machine learning algorithms to analyze unstructured data to identify patterns and anomalies that could indicate a security threat.
In addition to improving security, unlocking unstructured documents can also provide companies with a competitive advantage. In today's business environment, companies need to be agile and able to respond quickly to changing market conditions.
Unlocking unstructured documents can also improve collaboration and productivity within a company. When data is scattered across different systems and locations, it can be difficult for employees to access the information they need to do their jobs effectively. By unlocking this data, companies can provide employees with a centralized location to access the information they need.
This can improve collaboration between different departments and teams, as employees can share information more easily. It can also improve productivity by reducing the time employees spend searching for information.
The benefits of unlocking unstructured documents are clear, but some companies may be hesitant to undertake this transformation due to the perceived costs and challenges involved. However, delaying this transformation can result in missed opportunities and increased risk.
According to a study by the International Data Corporation (IDC), the amount of data created annually is expected to grow from 33 zettabytes in 2018 to 175 zettabytes in 2025. This exponential growth in data means that companies cannot afford to delay their efforts to unlock unstructured documents.
Furthermore, the rise of big data and artificial intelligence (AI) means that unlocking unstructured documents is becoming increasingly necessary. AI algorithms rely on large amounts of data to learn and make accurate predictions. By unlocking unstructured data, companies can provide the data needed to train these algorithms, enabling them to make more accurate predictions.
To illustrate the importance of unlocking unstructured documents, let's take a look at some statistics and real-world examples.
According to a survey by AIIM, a non-profit organization focused on information management, 55% of respondents said that unstructured information is growing faster than structured information in their organization. However, only 28% of respondents had a plan in place to manage this data.
This highlights the significant gap between the growth of unstructured data and the ability of companies to manage it. Without a plan in place to unlock this data, companies are missing out on valuable insights that could help them make more informed business decisions and therefore presents a significant opportunity to those that elect to embrace this value in the near term.
Furthermore, a study by McKinsey found that companies that fully utilize their data assets are 23 times more likely to acquire customers, six times as likely to retain customers, and 19 times as likely to be profitable as a result.
Unlocking unstructured documents can provide companies with a wealth of insights into their customers, competitors, and the market in general. This can help them identify new opportunities, make more informed decisions, and ultimately, drive growth and profitability.
One example of a company that has successfully unlocked its unstructured data is GE Aviation. The company has developed a system called FlightPulse, which collects data from pilots and airlines to provide insights into flight operations and fuel efficiency.
By unlocking unstructured data from flight records, GE Aviation has been able to provide pilots and airlines with personalized recommendations to optimize fuel efficiency and reduce emissions. This has resulted in significant cost savings for airlines and a reduction in carbon emissions.
Another example is Macy's, the US-based department store chain. Macy's has developed a system called Magic Selling, which uses AI algorithms to analyze customer behavior and provide personalized recommendations to sales associates.
By unlocking unstructured data from customer reviews, social media posts, and other sources, Macy's has been able to provide sales associates with valuable insights into customer preferences and needs. This has resulted in increased sales and customer satisfaction.
In conclusion, unlocking unstructured documents is essential for companies to thrive in today's complex business environment. By doing so, companies can improve security, gain a competitive advantage, improve collaboration and productivity, and drive growth and profitability.
While the process of unlocking unstructured data can be challenging, the benefits far outweigh the costs. Companies that delay this transformation risk falling behind their competitors and missing out on valuable opportunities. Therefore, it is essential for companies to prioritize this effort and invest in the technology and expertise needed to unlock their unstructured documents