How businesses can grow by using their data effectively

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08/10/2019

A.I. and automation are making headlines in the business world, but how should the UK’s smaller companies adapt to changing tech trends? Keeping it simple can be the best option, as Martin Thorn, Senior Manager - Decisioning, Analytics & A.I. at CYBG plc, explains below…

We regularly hear about how new technologies such as Artificial Intelligence (A.I.) are dramatically reshaping how businesses operate, including helping with productivity.

That said, you’d be forgiven for being overwhelmed by terms like Big Data, Robot Process Automation (RPA) and Machine Learning (ML), which are increasingly entering the lexicon alongside A.I.

Despite the increasing noise around these tools, my view is that while you should be aware of what new technology offers, you should make sure you don’t get caught up in the hype. It’s true, for example, that many big companies are using RPA to enhance productivity and eliminate repetitive tasks. Chatbots are starting to make an appearance and machine learning is being used in some sectors with good results.

However, let’s be pragmatic. When was the last time you dealt with a company via a chat bot? How good are the recommendations for you on Amazon or eBay? How targeted is the advertising you are getting? I’d say most large companies are, at best, experimenting with these technologies, but not always successfully. Global research and advisory firm Gartner believe that 75% of all machine learning projects fail. That doesn’t sound like mature technology to me.

So how can businesses use new technologies and become more productive when investment decisions are often prioritised elsewhere? The answer is simple – data.

Data is often considered one of the least ‘sexy’ parts of any company and can be one of the most misunderstood – but without high quality data then it’s almost impossible to move forward.

Even with unlimited funds and the best consultancy in the country, businesses will be working with one hand tied behind their back if they aren’t able to access and master some simple metrics. Information like customer numbers, profitability per customer, contacts per customer, cost to serve, profit per line item, is all crucial.

A chatbot sounds like it could be the answer to every company’s productivity dreams, but the first question you’ll be asked is “why are your customers contacting you?” and if you can’t quantify that then your chatbot dreams will be shattered.

So, my advice would be to treat every sale and every customer contact as an opportunity to capture data, confirm the quality of the data you already have and then record it electronically on the correct systems. You don’t need a massively expensive tool – for most, something like Excel will work perfectly well.

Author: Martin Thorn, Senior Manager
Decisioning, Analytics & A.I. at CYBG plc

Email: Patrick.jones@cybg.com
Tel: 0772 555 0670

Author: Martin Thorn, Senior Manager
Decisioning, Analytics & A.I. at CYBG plc

The key is to get the basics right – most companies don’t need machine learning or artificial intelligence just yet, instead they need a more detailed understanding of what is happening within their business.

Even if you don’t have the analysis resource right now, by capturing the data electronically with each data item stored in its own field, you’ll be building brilliant foundations to build on.

Then once you’ve captured the data, some time learning a skill like pivot tables in excel will pay dividends. Or if you really want to accelerate your data journey you could onboard a digital savvy entry level person for a short time period and see how they can take your data analysis journey to the next level. You don’t necessarily need someone with years of experience – I’ve seen companies make massive strides forward with a three month post graduate placement.

There's a reason people say 20% of your customers drive 80% of your income – because it’s true. So focus on the basics and ask yourself the simple questions around who your best customers are and what makes them the best. If you don’t have that information at your fingertips, then finding it would be the best start towards making your business as productive as it can be.

To read more of Martin’s thoughts on A.I. and data within financial services and the world of business, read his content on digit.fyi, here.

Business Insights – solving the productivity puzzle

To find out how you can enhance your business’ productivity, check out the latest edition of Clydesdale and Yorkshire Bank’s Business Insights publication, here.