The world of data-driven business is constantly evolving. Mohan Subramaniam, Professor of Strategy and Digital Transformation at IMD, illuminates the path from traditional, historical data to the dynamic realm of interactive data.
We delve into the key takeaways from his address on India’s digital transformation journey during his keynote at the India Management Transformation Summit last month in Mumbai, India.
Data’s evolution: From historic to interactive
One of the paramount shifts is the move from episodic data (historical) to interactive data (real-time). Subramaniam started by drawing a clear distinction between the two. Historic data, often used to discern market trends and historical actions, has its place, but it falls short in today’s fast-paced business environment. Interactive data, on the other hand, offers real-time insights gleaned from continuous interactions with products and services.
The potential of interactive data for businesses lies in its ability to provide immediate insights into customer behavior and preferences. In doing so, it enables businesses to adapt swiftly to changing dynamics and make informed decisions.
Delving into the customer connection
Understanding how individual customers are currently interacting with products and services has become very important in making business decisions. Rather than relying on aggregate data or generalized focus groups, Subramaniam advocates for a one-on-one understanding of each customer’s real-time reactions. This personalized approach enables businesses to cater to individual needs and preferences, enhancing customer satisfaction and loyalty. Emphasizing the creativity and innovation that goes into this thinking, he added, “If you do that, it opens up new avenues for value creation.”
Companies can generate revenue not only from product sales but also from data itself. Interactive data in particular becomes a valuable asset that can be monetized. This paradigm shift from product-centric to data-centric thinking opens up new avenues for value creation and business growth.
Expanding beyond conventional boundaries
Businesses can transcend traditional value chains by integrating user data with complementary services and ecosystems, Subramaniam said. This expanded approach not only fosters innovation but also amplifies the value proposition for customers. It allows companies to offer more holistic and integrated solutions, enriching the customer experience.
In the transition from product-based business models to data-driven ones, companies will inevitably encounter challenges. One such challenge is the mindset shift required to adapt to the impact of modern technology on data generation and sharing.