The Role Data Enrichment Plays in a Pandemic Recovery

It would be an understatement to say that COVID-19 has fundamentally changed the way we live and work. Prior to its arrival in early 2020, relatively few people conducted business meetings using online collaboration tools such as Zoom. Working from home was far less common than it is today. Supply chain disruptions have led to an increased focus on agility and resilience. Low-contact or no-contact transactions, once seen as a negative, are now preferred by many consumers.

This presents some interesting challenges for data scientists. When statistically meaningful changes occur in the world around us, big data initiatives must adapt to those shifts. Predictive analytics is built on algorithms “trained” on past data. However, if that past data changes materially, then the “lessons” learned by AI/ML systems might not produce accurate results.

Consider the example of an auto insurance company that analyzes traffic patterns and accident history to better understand risk. Then consider what happens if a substantial subset of the population suddenly changes their driving habits. Imagine, for example, an urban area with a high proportion of technology companies, such as Boston.

When the COVID-19 crisis began, past patterns suddenly became meaningless. Many of those professionals who formerly commuted to and from work every day were no longer on the road. To confuse things further, many of them are still working from home, after finding it to be a more convenient and productive way to do their jobs.

This poses an interesting problem with respect to machine learning algorithms designed to predict auto accident risk. If they were trained on pre-COVID data, then they probably aren’t doing a very good job making predictions in a and environment affected by COVID.

What does this mean for business leaders? Choosing the right data and partnering with the right companies for data enrichment and data quality was important before COVID appeared on the scene. Now, though, it’s more important than ever.

Shifting Priorities: Big Data on Center Stage

The disruptions brought about by the pandemic have also shifted strategic priorities for many companies. A significant number of planned IT investments were deferred in 2020. Many of those are back on track and building momentum, as business leaders look to stake out the strategic high ground amid the current pandemic recovery. That has led many to accelerate investments in the technologies that show the most promise for ROI–advanced analytics, AI, and machine learning.

Big data is an especially hot topic right now because it holds such great promise for changing the way companies do business, for better understanding their customers and prospects, their competitors, and the marketplace in which they operate. Retailers are using it to understand which products will appeal to which customers, and how they can reach those consumers most effectively. Insurers are using data to better understand risk, to detect fraud, and to improve customer service when widespread catastrophes occur. Government agencies are using advanced analytics to determine how services can be provided more efficiently and effectively to their constituents.

Advanced analytics offer a host of new ways to work smarter instead of working harder. Big data is unleashing a wave of innovation across virtually every industry. Those who use it to the greatest effect will undoubtedly gain competitive advantage over the next 12 months and beyond. As with so many endeavors, though, big data initiatives are highly dependent on having the right inputs. That means having the right data and ensuring that its quality is sufficient to deliver accurate, trustworthy results. Just as importantly, a truly effective program for advanced analytics, AI, and machine learning must be designed to take advantage of information that comes from outside the organization’s four walls.

Big data is hot right now, largely because the timing is so right. Cloud computing has made it possible to work with very large data sets using shared resources that are allocated on a pay-as-you-go basis. Operations that in the past would have required intensive investments in hardware and other infrastructure can now be performed at a fraction of the cost. Processing speeds are better than ever, and the cost of cloud storage has plummeted.

At the same time, business leaders have come to understand just how valuable their data can be. The new refrain is “data is the new oil.” Michael Lewis’ best-selling book “Moneyball” popularized the notion that by shifting to a data-driven approach to management, organizations can transform the way decisions are made, with very positive results. In the case of Billy Bean’s use of analytics to build a better baseball team, that transformation was literally a game-changer.

For business leaders to achieve the results they are looking for, though, it is essential that analytics initiatives be built around a strong focus on data integrity. That means having powerful and flexible integration capabilities to eliminate data silos. It also means building effective programs and deploying the necessary tools to ensure that you are working with high-quality data. Finally, the most effective initiatives for advanced analytics will incorporate location intelligence and data enrichment.

Data Enrichment Following a Disrupter Such as COVID

A few decades ago, many companies that had advanced analytics programs were still focused primarily on internal corporate data. It was common practice to set up a data warehouse, aggregate information from various systems and departments within the organization, and run Online Analytical Processing (OLAP) reports against that data on a routine basis. This could help business leaders understand sales trends by customer segment, region, and product line, for example, but it barely scratched the surface of what advanced analytics are truly capable of doing.

Marketers have long understood the value of externally sourced lists, both for direct marketing and developing a deeper understanding of customers, prospects, and markets. Nevertheless analysis of such information in the past has often occurred in relative isolation,  with little regard to existing internal corporate data.

As big data analytics has become faster, cheaper, and more powerful, and as integration capabilities are improving, all of this is changing very quickly. Our increasingly digital society is generating more data than ever before, and the companies that can leverage that information most effectively will come out ahead in this recovery.

Whether your organization is just embarking on its big data journey, or whether you are already well on your way, Precisely can help. As the global leader in data integrity, Precisely serves companies of all sizes, including many of the largest enterprises in the world. Our products help companies achieve integration, data quality, location intelligence, and data enrichment. To learn more, watch our free on-demand webinar, Enhance Location-Based Insights with Additional Geocoding Capabilities.