Digital transformation is most effective when firms harness the full power of their data. But what many companies don’t realize is that the type of the data they use is of key importance. While you don’t need to be a digital or data expert, as a leader you should take the time to understand the difference.
Two types of data
Digital transformation requires increasing the use of interactive as opposed to episodic data in existing business models. Episodic data stem from discrete events such as the sale of a product or the shipment of a component. Interactive data stem from continuous interactions, such as by browsing on Amazon’s site, conducting searches on Google, or socializing on Facebook.
Today, with the help of sensors and the Internet of Things (IoT), all kinds of firms can collect and use interactive data to generate new revenue streams and…