Are you leaving ‘dark data’ on the table?

Data has always existed. Advances in technology have enabled both customers and companies to collect, collate and analyze data economically and efficiently. Whilst this has enabled a number of new companies to emerge from the dark, a lot of data available at the disposal of ‘traditionally established’ companies is still in the ‘dark’. Gartner defines dark data “as the information assets organizations collect, process and store during regular business activities, but generally fail to use for other purposes (for example, analytics, business relationships and direct monetizing).”  If we combine, social media data with the dark data available within the organizations, this represents a plethora of unused opportunities that ‘traditionally established’ companies ignore.

Consequently, when these companies are divesting their core or non-core businesses a lot of value is left on the table. This can be driven by a number of reasons including a lack of awareness of data, disconnect between top management and ‘people on ground’, lack of tools to visualize data or simply a lack of ‘innovation culture’ within the company.

Unfortunately, traditional valuation methodologies do not put a value on your ‘dark data’ and in a fast paced transaction environment, companies usually delve too deep into the transaction process before realizing (and in some cases not realizing at all) that they have left ‘dark data’ on the table. The problem is exacerbated by many transaction advisors also not understanding the true value of data hidden in the company or the transaction advisors not asking the right questions.

To harness the true potential of your ‘dark data’, you need to first understand your data. From your ERP system to your POS system, there is a wealth of data hidden within your organization that can generate value. Combining this data with your customer interaction data (calls, text messages, and social media activity), your competitors’ social media activity, your customers’ browsing preference, etc. provides a goldmine of data that can be converted into meaningful information and consequently valued during a transaction.

Investors do not fund tech companies such as LinkedIn, Facebook, Whatsapp, Snapchat, Twitter, Uber, Careem and Airbnb purely on their asset valuation. The real value lies in the data these companies capture, the algorithms that these companies have in place to utilize this data and the ‘potential of monetizing that data’ in future. The tech companies or ‘new kids on the block’ have been successfully commanding a value for their data. The question is ‘why are you leaving dark data on the table?’

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Important Note: All comments and opinions are my own and do not represent those of my employer.