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Home Articles

Datafication – Understanding the Basics and Benefits

by Sabira Ulfath
July 25, 2023
in Articles, Data Science and Machine Learning, Entri Skilling
Datafication
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Table of Contents

  • What is Datafication?
  • Benefits of Datafication
  • Conclusion
  • FAQs

Datafication refers to the collective tools, technologies, and processes used to transform an organization into a data-driven enterprise. An organizational trend of defining the key to core business operations through a global reliance on data and its related infrastructure.

Although it was first used in 2013, the concept of datafication is still very current. Instead of merely transforming analogue information into digital information, like in digitisation, it aims to quantify social behaviour through the application of sophisticated mathematical analysis.

Datafication is helping us to understand the world in a way which was never done before. New technologies are now available to ingest, store, process and visualise that data. Organizations are using them to get benefits. For example marketers are analysing Facebook and Twitter data to determine and predict sales.

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What is Datafication?

The word “Datafication” does not have a definition or rather it is not yet a word that has found a place in a dictionary. And yet it is a word we are hearing a lot these days. What it simply means is this- from our actions to our thoughts, everything is getting transformed into a numerically quantified format or “Data”.

Datafication enables the transformation of business operations, behaviors, and actions, in addition to those of its clients and consumers, into quantifiable, usable, and actionable data. This information can then be tracked, processed, monitored, analyzed, and utilized to improve an organization and the products and services it offers to customers. To put them into perspective.

  • Google transforms our searches into data
  • Facebook transforms our friendships into data
  • LinkedIn transforms our professional life into data
  • Netflix or Amazon Prime transforms our watched TV shows and films into data
  • Tinder transforms our dating activities into data
  • Amazon transforms our shopping into data

Benefits of Datafication

1: Which of the following algorithms is most suitable for classification tasks?

2: Which metric is generally used to evaluate the performance of a regression model?

3: Which of the following is not a feature scaling method?

4: In machine learning, what is overfitting?

5: Which type of machine learning algorithm is used to predict a continuous output?

    Fill out the form to see the results



    Ever wondered how much you really know? It's time to put your brain to the test!

    Datafication is a technique that is financially advantageous to pursue since it provides great opportunity for streamlining corporate procedures. Datafication is a cutting-edge process for creating a futuristic framework that is both secure and inventive.

    1. Actionable Insights

    Datafication converts unstructured, incomprehensible data into usable insights, allowing you to get insight into your processes and procedures – the basis of any organization.

    Datafication suggests that you will be better able to comprehend the advantages, disadvantages, potential, and future of your business. Additionally, it gives you knowledge about the results and effects of your efforts, allowing you to evaluate what you’re doing and how you’re doing it.

    2. Digital Transformation

    In order for organisations to stay relevant and up-to-date in a constantly shifting ecosystem, digital transformation is no longer just a passing trend but rather a necessity.

    You should have useable data if you want to benefit from the most recent and cutting-edge technologies. It holds the key to enhancing the effectiveness and efficiency of corporate operations. You will be better able to comprehend the organization’s current situation and the necessary next actions to advance.

    3. Improve Productivity and Efficiency

    Datafication will be able to understand what you’re doing and how you’re improving. Streamlining operations will improve the utilisation of all assets, including staff members, to increase output and efficiency overall and turn your company into a prosperous corporation.

    4. Manage Information

    Any business generates a lot of data, which is constantly collected and stored. A well-managed data set will produce superior outcomes. Otherwise, it could become overwhelming or useless information.

    By correctly organising it through datafication, you can use the information to make judgements. You will be able to access and analyse the data in addition to storing it. To contextualise the consumer experience, several organisations are experimenting with integrating user-sourced data and putting it into apps.

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    Conclusion

    The idea of datafication may be unsettling, but with the right datasets, security precautions, and professional ethics, businesses may be able to use the data they collect to offer personalised and customer-friendly services. Datafication is encouraging innovation, scientific advances, and improvements for the benefit of society as it becomes more widespread.

    One of the core elements to achieving datafication is by democratizing data access. Ensuring the last line of employees is empowered to access insights can build a data-driven culture that can act as a precursor for setting organizations on the path to datafication.

    FAQs

    Q. What are the benefits of datafication?
    Ans: Datafication offers the advantages of informed decision-making through data-driven insights and personalized experiences for individuals and businesses. It empowers organizations to optimize processes, enhance efficiency, and gain predictive analytics capabilities while fostering innovation and advancing research across various fields.

    Q. What is the concept of datafication?

    Ans: Datafication is a technological trend turning many aspects of our life into data which is subsequently transferred into information realised as a new form of value.

    Q. Why is datafication important in technology?

    Ans: Datafication is the process of collecting and analyzing data to gain insights and make informed decisions. This practice allows us to use data to better understand customer needs, identify trends, predict outcomes, and optimize processes.
    Q. Who introduced the term “datafication”?
    Ans: Kenneth Cukier and Viktor Mayer-Schönberger introduced the term “datafication”  in 2013.
    Q. What is datafication with example?
    Ans: Datafication is the process of converting various aspects of our lives, activities, and interactions into data that can be collected, analyzed, and used to gain insights or make informed decisions. It involves turning real-world events or phenomena into quantifiable data points.
    Organizations are using them to get benefits. For example marketers are analysing Facebook and Twitter data to determine and predict sales.
    Related Links
    Pivot Table in Excel Top Excel Interview Questions
    Basic Excel Formulas and Functions Keyboard Shortcuts in Excel
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    Sabira Ulfath

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