Module 3. Improving current business model with EXTERNAL data

These slides address how to improve your business model using externally sourced data.

Transcript

1. D:\ DRIVE How to become Data Driven? This programme has been funded with support from the European Commission Module 3: Improving current business with external data
2. Smart Data Smart Region | www.smartdata.how This programme has been funded with support from the European Commission. The author is solely responsible for this publication (communication) and the Commission accepts no responsibility for any use that may be made of the information contained therein. The objective of this module is to gain an overview how you can use the data available outside of your company to improve your business. Upon completion of this module you will: - Learn the basics of external data and where to find it - Be able to recognize there is a lot of Open Data already out there for you to use - See the benefits of using the external data in order to improve your business Duration of the module: approximately 2 – 3 hours Module 3: Improving current business with external data
3. 1 External data 2 Smart Data Smart Region | www.smartdata.how This programme has been funded with support from the European Commission. The author is solely responsible for this publication (communication) and the Commission accepts no responsibility for any use that may be made of the information contained therein. – The benefits using external data – The challenges associated with using the external data – Why external data is the fuel of your business The Bussines Aspect of External Data – Primary Data • Sources of Primary Data – Secondary Data • Sources of Secondary Data – Open Data • Defining Open Data • Big Data vs Open Data • Benefits – Factors of Data Quality
4. EXTERNAL DATA 1. Primary Data 1. Sources of Primary Data 2. Secondary Data 1. Sources of Secondary Data 3. Open Data 1. Defining Open Data 2. Big Data vs Open Data 3. Benefits 4. Factors of Data Quality
5. Data is everywhere. That fact is not necessarily new or interesting—great minds of past generations have long harnessed and utilized data in order to inform their decisions, create and test hypotheses, and attempt change the world. But “data is everywhere” doesn’t have the same meaning for our generation as it did for past generations. For us, it’s a nod to the fact that we are more connected to each other, to the businesses we buy from, and to the world than ever before. Today, thanks to the widespread adoption and use of the Internet, we have instant and real-time access to an incomprehensibly large amount of data. Smart Data Smart Region | www.smartdata.how
6. When most people think about Big Data and Business Intelligence they think about internal data (module 2). But the problem with internal data is that it only paints part of the picture. So what’s missing? The answer, as you may have guessed, is external data. Smart Data Smart Region | www.smartdata.how
7. External data can be divided into two categories: 1. Primary data • It refers to the information collected by the researcher from original sources. It is not a published data; it has to be gathered by the researcher himself by tapping various resources. Primary data is usually collected for specific purposes. • It is a very slow process of collecting data and involves huge costs. But results obtained from this data are original and tend to be more accurate and reliable. 2. Secondary data • Secondary data is already existing which has been collected and published by some individuals or institutions. This data is available at a very low cost and it requires lesser time to collect it. • Open data! Smart Data Smart Region | www.smartdata.how EXTERNAL DATA External data refers to data generated from outside an organization. It can come from a variety of places and serve nearly every industry in the business world. Smart Data Smart Region | www.smartdata.how
8. PRIMARY DATA Smart Data Smart Region | www.smartdata.how Primary data is unique, original, reliable and accurate in nature, since it has not been changed or altered by human beings, therefore its validity is greater than secondary data. It is also specially collected for a research project. Interview Questionnaire Focus group Community forums and public hearings Observation Case study Key informants interview Online research methods There are several methods of collecting primary data:
9. Smart Data Smart Region | www.smartdata.how A questionnaire is a research instrument consisting of a series of questions (or other types of prompts) for the purpose of gathering information from respondents. A distinction can be made between questionnaires with questions that measure separate variables, and questionnaires with questions that are aggregated into either a scale or index. Questionnaires with questions that measure separate variables, could for instance include questions on: • preferences (e.g. political party) • behaviors (e.g. food consumption) • facts (e.g. gender) Questionnaires with questions that are aggregated into either a scale or index, include for instance questions that measure: • latent traits • attitudes (e.g. towards immigration) • an index (e.g. Social Economic Status) Questionnaire PRO‘s •Inexpensive •It can be widely used •Quick •Easy to analyze CON‘s •Very low return rates •Because of the specific questions the information gained can be minimal •They can contain quite large measurement errors •There is a long delay in receiving filled in questionnaires
11. Smart Data Smart Region | www.smartdata.how An interview in qualitative research is a conversation where questions are asked to elicit information. The interviewer is usually a professional or paid researcher, sometimes trained, who poses questions to the interviewee, in an alternating series of usually brief questions and answers. When choosing to interview as a method for conducting qualitative research, it is important to be tactful and sensitive in your approach. While an interviewer generally enters each interview with a predetermined, standardized set of questions, it is important that they also ask follow-up questions throughout the process. Such questions might encourage a participant to elaborate upon something poignant that they’ve shared and are important in acquiring a more comprehensive understanding of the subject matter. Additionally, it is important that an interviewer ask clarifying questions when they are confused. If the narrative, details, or chronology of a participant’s responses become unclear, it is often appropriate for the interviewer to ask them to re-explain these aspects of their story so as to keep their transcriptions accurate. Interview PRO‘s •Simple and convenient •Saves time, money and labor •Useful in investigation of a large area •Adequate information can be gained CON‘s •Information can‘t be relied as absence of direct contact •Intewview with an improper man will spoil the results •To get real data, a sufficient number of people are to be interviewed •Careless attitude of informant affects the degree of accuracy
13. Smart Data Smart Region | www.smartdata.how The essence of survey method can be explained as “questioning individuals on a topic or topics and then describing their responses”. In business studies survey method of primary data collection is used in order to test concepts, reflect attitude of people, establish the level of customer satisfaction, conduct segmentation research and a set of other purposes. Survey method pursues two main purposes: • Describing certain aspects or characteristics of population and/or • Testing hypotheses about nature of relationships within a population. Survey method can be broadly divided into three categories: • mail survey – a written survey that is self-administered • telephone survey – a survey conducted by telephone in which the questions are read to the respondents • personal interview - a face-to-face interview of the respondent Survey PRO‘s • Highly accurate, reliable and valid • Allows for comparisons with other/larger populations when items come from existing instruments • Easily generates quantitative data CON‘s • Relatively high costs • Slow to design, implement and analyze • Accuracy depends on who and how many people sampled • May have low response rates • Little opportunity to explore issues in depth
15. Smart Data Smart Region | www.smartdata.how A case study is a research method involving an up-close, in-depth, and detailed examination of a subject of study (the case), as well as its related contextual conditions. In doing case study research, the "case" being studied may be an individual, organization, event, or action, existing in a specific time and place. For instance, clinical science has produced both well-known case studies of individuals and also case studies of clinical practices.] However, when "case" is used in an abstract sense, as in a claim, a proposition, or an argument, such a case can be the subject of many research methods, not just case study research. Case study research can mean single and multiple case studies, can include quantitative evidence, relies on multiple sources of evidence, and benefits from the prior development of theoretical propositions. Case study PRO‘s • Direct behavioral study • Real and personal experience record • Make possible the study of social change • Increase analysis ability and skills CON‘s • Each case is different from another case • Personal bias • It can be used only in a limited sphere • It demands more time • Money consuming
17. Smart Data Smart Region | www.smartdata.how A focus group is a small, but demographically diverse group of people and whose reactions are studied especially in market research or political analysis in guided or open discussions about a new product or something else to determine the reactions that can be expected from a larger population. It is a form of qualitative research consisting of interviews in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members. During this process, the researcher either takes notes or records the vital points he or she is getting from the group. Researchers should select members of the focus group carefully for effective and authoritative responses. Focus group PRO‘s •Low costs •Rapid data collection •Participants define what is important •Some opportunity to explore issues in depth •Opportunity to clarify responses through probes CON‘s •Can be time consuming to assemble groups •Produces limited quantitative data •Requires trained facilitators •Less control over process than key informant interviews •Difficult to collect sensitive information •May be difficult to analyze and summarize findings
19. Smart Data Smart Region | www.smartdata.how Observation, as the name implies, is a way of collecting data through observing. Observation data collection method is classified as a participatory study, because the researcher has to immerse herself in the setting where her respondents are, while taking notes and/or recording. Observation as a data collection method can be structured or unstructured. In structured or systematic observation, data collection is conducted using specific variables and according to a pre-defined schedule. Unstructured observation, on the other hand, is conducted in an open and free manner in a sense that there would be no pre-determined variables or objectives. Observation PRO‘s •Setting is natural, flexible and unstructured •Evaluator may make his/her identity known or remain anonymous •Evaluator may actively participate or observe passively •Can be combined with a variety of other data collection methods •Generates relevant, quantifiable data •Most useful for studying smaller units CON‘s •Requires a skilled observer •The evaluator has less control over the situation in a natural enviroment •Hawthorne effect – if group is aware that they are being observed, resulting behaviour may be affected •Can not be generalized to entire population unless a plan for representativness is developed
21. Smart Data Smart Region | www.smartdata.how Key informant interviews are qualitative, in-depth interviews of 15 to 35 people selected for their first-hand knowledge about a topic of interest. The interviews are loosely structured, relying on a list of issues to be discussed. Key informant interviews resemble a conversation among acquaintances, allowing a free flow of ideas and information. Interviewers frame questions spontaneously, probe for information and takes notes, which are elaborated on later. The following are two common techniques used to conduct key informant interviews: • Telephone Interviews • Face-to-Face Interviews Key informant interview PRO‘s • Low costs • Respondents define what is important • Rapid data collection • Possible to explore issues in depth • Opportunity to clarify responses through probes • Sources of leads to other data sources and other key informants CON‘s • Can be time consuming to set up interviews with busy informants • Requires skilled and/or trained interviewers • Accuacy is limited and difficult to secify • Produces limited quantitative data • May be difficult to analyze and summarize findings
23. Smart Data Smart Region | www.smartdata.how A series of public meetings to involve the community in defining and discussing needs. These methods are data-gathering techniques from the political arena. Community forums are less formal and open to the public, while hearings consist of testimony from selected witnesses and often the issuance of a summary report. Community forums and public hearings PRO‘s •They can raise the credibility of the needs assessment process by enhancing openness and inclusion •These activities are inexpensive and relatively easy-to-arrange •Community members who were not selected for planning group membership can participate •Forums and hearings can raise the level of awareness and understanding about your issue and the community planning initiative •These methods can be a way to build community ownership of and investment in your issue and the planning process •The meetings may reveal issues that warrant further investigation CON‘s •Community members who choose to participate may not be completely representative of the community; remember, some people with good ideas or a clear understanding of the issues do not like to speak at such events •Just because the needs may be stated eloquently and with many listeners, does not mean that other data collection methods should be discounted •Do not allow representation to become too narrow; the needs identified depend on the characteristics and backgrounds of those who participate •Do not use hearings/forums as your primary data collection method
25. Smart Data Smart Region | www.smartdata.how Online research methods are the digital tools and processes used to gather information on a topic from an internet search. The information gathered may include both factual information and the opinions of experts. They help people find the information they need quickly. Online tools provide information instantly. This information would take much longer to locate using offline research methods (such as searching for books in a library). Some specific types of method include: • Cyber-ethnography • Online content analysis • Online focus groups • Online interviews • Online qualitative research • Online questionnaires • Social network analysis • Web-based experiments • Online clinical trials Online research methods PRO‘s •Automated data collection •Minimal cost •Easier targeting of respondents across numerous segmentation variables •Rapid turnaround CON‘s •Limited to internet population •Respondent fraud and bias •Researcher bias
27. SECONDARY DATA Smart Data Smart Region | www.smartdata.how Secondary data is research data that has previously been gathered and can be accessed by researchers. The term contrasts with primary data, which is data collected directly from its source. Secondary data is used to increase the sampling size of research studies and is also chosen for the efficiency and speed that comes with using an already existing resource. Secondary data facilitates large research projects, in which many research groups working in tandem collect secondary data. The main researcher is then allowed to focus on primary research or particular areas of interest. This division of labor helps researchers learn more in less time.
28. Smart Data Smart Region | www.smartdata.how Sources of Secondary data: PUBLISHED PRINTED SOURCES Books Books are available today on any topic that you want to research. The uses of books start before even you have selected the topic. After selection of topics books provide insight on how much work has already been done on the same topic and you can prepare your literature review. Journals Journals and periodicals are becoming more important as far as data collection is concerned. The reason is that journals provide up- to-date information which at times books cannot and secondly, journals can give information on the very specific topic on which you are researching rather talking about more general topics. Magazines/ Newspapers Magazines are also effective but not very reliable. Newspaper on the other hand is morereliable and in some cases the information can only be obtained from newspapers as in thecase of some political studies. Commercial services Published market research reports and other publications are available from a wide range of organisations which charge for their information. Typically, marketing people are interested in media statistics and consumer information which has been obtained from large scale consumer or farmer panels. General Websites Generally websites do not contain very reliable information so their content should be checked for the reliability before quoting from them. Blogs Weblogs are also becoming common. They are actually diaries written by differentpeople. These diaries are as reliable to use as personal written diaries. UNPUBLISHED SOURCES National and international institutions Bank economic reviews, university research reports, journals and articles are all useful sources to contact. International agencies such as World Bank, IMF, IFAD, UNDP, ITC, FAO and ILO produce a plethora of secondary data which can prove extremely useful to the marketing researcher. Trade Associations Trade associations differ widely in the extent of their data collection and information dissemination activities. However, it is worth checking with them to determine what they do publish. At the very least one would normally expect that they would produce a trade directory and, perhaps, a yearbook. Government Records Government records are very important for marketing, management, humanities and social science research. These may include all or some of the following: · Population censuses · Social surveys, family expenditure surveys · Import/export statistics · Production statistics · Agricultural statistics.
29. DIFFERENCE BETWEEN PRIMARY AND SECONDARY DATA Primary data • Real time data • Sure about sources of data • Help to give results/findings • Costly and time consuming process • Possible bias results • More flexible Secondary data • Past data • Not sure about the sources of data • Refining the problem • Cheap and doesn‘t take too much time • Can not now if data is bias or not • Less flexible Smart Data Smart Region | www.smartdata.how
30. Data is the raw material of the new industrial revolution. Francis Maude MP
31. DEFINING OPEN DATA Data enrichment refers to processes used to enhance, refine or otherwise improve raw data. This idea and other similar concepts contribute to making data a valuable asset for almost any modern business or enterprise. Smart Data Smart Region | www.smartdata.how Data, that is made available by organizations, businesses and individuals for anyone to access, use and share. Open data has to have a license that says it is open data. Without a license, the data can’t be reused. The license might also say: – that people who use the data must credit whoever is publishing it (this is called attribution) – that people who mix the data with other data have to also release the results as open data (this is called share-alike)
32. 1 2 3 • Large datasets from scientific research, social media or othe non- government sources • Large government datasets (weather, GPS, healthcare,...) • Public data from state, local, federal government (budget data,...) BIG DATA • Non-public data for marketing, business analysis, national security OPEN DATA • Business reporting and other business data (consumer complaints,...) OPEN GOVERNMENT • Citizen engagement programs not based on data (petitions, websites,...) BIG DATA VS OPEN DATA Intersection of the three concepts defines the six subtypes of data shown on the diagram. There’s no separate category for the intersection of Big Data and Open Government – anything in that category is also Open Data. Smart Data Smart Region | www.smartdata.how
33. 1. Big Data that’s not Open Data. A lot of Big Data falls in this category, including some Big Data that has great commercial value. All of the data that large retailers hold on customers’ buying habits, that hospitals hold about their patients, or that banks hold about their credit-card holders, falls here. It’s information that the data-holders own and can use for commercial advantage. National security data, like the data collected by the NSA, is also in this category. 2. Open Government work that’s not Open Data. This is the part of Open Government that focuses purely on citizen engagement. For instance, the White House has started a petition website, called We the People, to open itself to citizen input. While the site makes its data available, publishing Open Data – beyond numbers of signatures – is not its main purpose. 3. Big, Open, Non-Governmental Data. Here we find scientific data-sharing and citizen science projects. Big data from astronomical observations, from large biomedical projects like the Human Genome Project, or from other sources realizes its greatest value through an open, shared approach. While some of this research may be government-funded, it’s not “government data” because it’s not generally held, maintained, or analyzed by government agencies. This category also includes a very different kind of Open Data: the data that can be analyzed from Twitter and other forms of social media. 4. Open Government Data that’s not Big Data. Government data doesn’t have to be Big Data to be valuable. Modest amounts of data from states, cities, and the federal government can have a major impact when it’s released. This kind of data fuels the participatory budgeting movement, where cities around the world invite their residents to look at the city budget and help decide how to spend it. It’s also the fuel for apps that help people use city services like public buses or health clinics. 5. Open Data – not Big, not from Government. This includes the private-sector data that companies choose to share for their own purposes – for example, to satisfy their potential investors or to enhance their reputations. Environmental, social, and governance (ESG) metrics fall here. In addition, reputational data, such as data from consumer complaints, is highly relevant to business and falls in this category. 6. Big, Open, Government Data (the trifecta). These datasets may have the most impact of any category. Government agencies have the capacity and funds to gather very large amounts of data, and making those datasets open can have major economic benefits. National weather data and GPS data are the most often- cited examples. U.S. Census data, and data collected by the Securities and Exchange Commission and the Department of Health and Human Services, are others. With the new Open Data Policy, this category will likely become larger, more robust, and even more significant. Smart Data Smart Region | www.smartdata.how The diagram explained:
34. Open Government Data is a wealth of untapped potential. As with any initiative within the public domain, it also involves expenditures and the effort of internal resources. Better understanding the benefits of Open Data can help accelerate the commitment around your Open Data initiative. The following overview provides more evidence of these benefits to support your initiative. Smart Data Smart Region | www.smartdata.how BENEFITS • It provides citizens with a reliable knowledge base regarding government and public sector bodies’ activities. • It enables them to take part in public sector bodies’ activities and therefore participate actively to the public choices (eDemocracy). • It represents the initial material for public or private stakeholders to develop new added-value services and supply them to citizens. • It is one of the crucial tasks to fulfil the aim of the Digital Agenda for Europe to “deliver sustainable economic and social benefits from a digital single market based on fast and ultra-fast internet and interoperable applications” (Kolodziejski, 2013) • Opening up data can optimise your process internally. When data is open, none of your colleagues will have to go through an internal process to receive particular data. Many organisations have encountered the benefit of having their data open, simply because it takes less time to find data. Remember, your organisation will most probably be the most active re-user of your data. • Not only your organisation, but also citizens will benefit from an improved – and perhaps faster – internal information structure. Processes will take less time, services can be digitalized, and citizens will benefit from more efficiency and transparency. A simple example might be to apply a single data provision to your services, thereby ensuring that users – citizens and / or businesses – will not have to keep on providing data you already have. • If your organisation’s data infrastructure may be outdated, your Open Data initiative might be a wonderful chance to achieve an internal change. Many organisations have taken the opportunity to redesign their internal data infrastructure and incorporated the publication of data as a main activity in working instructions. Talk with the managers within your organisation what the plans are concerning IT infrastructure on data level. • By means of user feedback, you can improve the quality of your datasets. The power of the crowd, known as crowd sourcing, is a very efficient way of pooling resources to reach a given, sometimes surprising, result.
35. Benefits when Open Government Data is re-used
36. A trained, professional eye in today's business world studies data analytics in data collection as a means of extracting the most significant issues related to each particular type of business. It is difficult to imagine those in the restaurant industry, for example, neglecting to gather data on competitors for their market share. Data analytics plays a large role in financial, manufacturing, medical, healthcare, marketing and government. Within these industries, thousands of businesses perform data analysis on a variety of business operations. FACTORS OF DATA QUALITY Timeliness Consistency Validity Accuracy Entirety 1 2 3 4 5 To obtain optimal quality data, there are factors that should be considered. These include: Smart Data Smart Region | www.smartdata.how
37. 1. The benefits using external data 2. The challenges associated with using the external data 3. Why external data is the fuel of your business THE BUSINESS ASPECT OF EXTERNAL DATA
38. Organisations that use external data effectively have the potential to place themselves ahead of the game in terms of strategic planning and competitiveness within the sector. Benefits include: THE BENEFITS OF USING EXTERNAL DATA External data providers make available high quality information and data for reuse by organisations to support strategic planning The quality of data held is assured Large quantities of data are freely available to organisations from providers’ websites Bespoke services are provided when more detailed data is required Regular publications are provided in hard copy form by some providers High level data on peer organisations enables comparisons to be made Time series and historical data enables comparisons over time Training in the use of data is offered by some providers Ongoing discussion between providers aims to provide a rounded service Data providers are working proactively to enhance the usability of their data Allows an organisation to benchmark specific aspects of its own performance against that of peer and/or rival organisations. Smart Data Smart Region | www.smartdata.how
39. There are still challenges in delivering and using external data for optimum results, both for organisations and data providers. These challenges include: THE CHALLENGES ASSOCIATED WITH USING EXTERNAL DATA Working with statistics is still seen as a burden rather than a benefit by some managers Some managers still see working with statistics as a function just for the IT department Without experience it can be difficult to frame the right question to ask external providers It can be expensive to acquire data from external data providers It can be difficult to translate statistics into meaningful information accurately Providers need to supply more guidance and case studies on reuse to the sector A lack of data join up (about the same data) between external providers can lead to inefficiency and inaccurate outcomes It can be difficult to join up externally with internally held data to draw accurate conclusions It is difficult to obtain data at a sufficient level of detail for making useful comparisons with competitors Smart Data Smart Region | www.smartdata.how
40. There are a number of reasons why more and more businesses and data professionals are incorporating external data analytics into their decision making processes. Here are just a few worth mentioning that really highlight why now is the perfect time to go all in on external data. WHY EXTERNAL DATA IS THE FUEL OF YOUR BUSINESS
41. Smart Data Smart Region | www.smartdata.how External data can provide you with a bigger picture. As a business owner or data professional, you need to be collecting, evaluating, and acting on internal data. But as mentioned, that really only gives you part of the picture. In order to get the full view, you have to look to external data (user- generated data, public data, competitor data, partner data, etc). 1
42. Smart Data Smart Region | www.smartdata.how Accessing external data is not costly. Thanks to initiatives by governments and businesses around the world, accessing external data doesn’t cost a lot of money. In fact, a lot of databases can be accessed for free. Where the cost does come into play, however, is organizing, evaluating, and applying external after the external data to specific business needs (that’s where experienced data scientists and analysts come into the picture!). 2
43. Smart Data Smart Region | www.smartdata.how Technology and tools have made accessing external data easier and more convenient than ever. It’s never been easier or more convenient to access external data. As the world continues to become more and more connected, and as technology continues to advance, it’s becoming a lot easier to find, collect, and interpret external data. You don’t need a computer science degree or a Masters in Data Science in order to benefit from external data. You definitely want someone who does have those degrees on your team in order to dive deeper into the internal and external data you ultimately collect, but you don’t necessarily need them in order to access or collect the data itself. A lot of the external tools that are available today are incredibly easy to use. 3
44. Smart Data Smart Region | www.smartdata.how External data can give you real-time, minute-by-minute updates on industry, consumer, and product trends. This is the biggest value for business and it’s why external data is so important. External data analytics can have a major impact when it comes to making decisions about the future of a business, learning more about the health of an industry, determining which new products to release and where to release them, and many, many other areas. In a lot of cases, the tools and sites that collect and present external data are updating information in real-time—which is invaluable during times when an informed decision needs to be made fast. 4
45. Smart Data Smart Region | www.smartdata.how External data can give you a leg up on competition. The other major benefit of external data is that it creates an opportunity to get a leg up on competition. There are a lot of tools out there that make it easier than ever to keep an eye on your competition in order to stay ahead of the game. With competition for the attention of online consumers at an all time high, the ability to quickly, easily, and regularly check up on competition in invaluable and can mean the difference between growing your business or closing your doors for good. 5
46. Smart Data Smart Region | www.smartdata.how More and more data is being uploaded to the web everyday. Consider the following statement from Rose Business Technologies: “IDC estimates the volume of digital data will grow 40% to 50% per year. By 2020, IDC predicts the number will have reached 40,000 EB, or 40 Zettabytes (ZB). The world’s information is doubling every two years. By 2020 the world will generate 50 times the amount of information and 75 times the number of “information containers” while IT staff to manage it will grow less than 1.5 times.” 6
47. Data will talk, if you‘re willing to listen. Jim Bergeson
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