7 Benefits of Data Transformation in Your Business
7 Benefits of Data Transformation in Your Business
Collecting massive volumes of data has become significantly easier through the use of different programs and applications. However, this influx has given rise to a new problem for businesses — getting the most out of their data.
According to Forrester, 60 percent to 73 percent of data remain dormant or entirely wasted. In a time where making data-driven decisions gives organizations a competitive edge, this statistic is unacceptable. So, how are businesses tackling this problem? Though data transformation.
What is data transformation?
Data transformation is the process of converting data from one format to another, usually from the source format to the destination format. The process commonly involves filtering, splitting, merging, enriching, and removing duplicates to make the data ready-for-use of an organization.
Why transform data?
Business intelligence (BI), which organizations use to support and facilitate decisions and simplify the administration process, is generated through data analytics. But before data analytics engineers can serve clean data sets to end-users, the data should be transformed into an accessible, usable format first.
The data transformation process has five steps; data discovery, data mapping, code generation, code execution, and review. The third step, code generation, can be done manually, but this method has a higher risk of errors, making it less cost-effective. Manually generated code also needs to be rewritten every time the transformation process is repeated. With the use of a data transformation tool, the code generation process can be made significantly faster and more efficient. Besides boosting efficiency, data transformation tools can generate a graphical representation of data to help end-users understand the data flow.
Benefits of data transformation
Today’s businesses, regardless of industry, know the importance of data in making better business decisions that lead to higher sales and profits. Utilizing 100 percent of the data collected through transformation means an organization will reap more benefits from it. The benefits of data transformation are in the dozens but below are most relevant to businesses.
1. Improved organization
Data transformation arranges data in a way that makes it easier for both humans and computers to use. At the end of the transformation process, data reaches a format that humans and machines can work on. This enhances the ability of humans to interpret data when assisted by computers.
2. Increased data utilization
As mentioned previously in this discussion, more than half of the data businesses collect is left unused. By transforming data, especially with the help of data transformation tools, organizations can convert as much of the data into a usable, easy-to-access form.
3. Improved data management
Managing large volumes of data from multiple sources can result in discrepancies in metadata, making data management a tougher task. If data is transformed, the discrepancies are resolved, and the data set becomes easier to work on.
4. Improved accessibility
Data transformation converts data into a workable format, which also makes it more accessible. Some data transformation tools take business metrics and measurements and automatically generate reports, sometimes even eliminating the need to request it from a data person.
5. Improved data quality
When it comes to data, quality is just as important as quantity. As much as possible, organizations want to decrease the higher risks and costs brought about by bad data. Data transformation ensures data is of good quality and issues regarding quality are minimized. Ultimately, improved data quality means organizations can extract better business intelligence from it.
6. Improved data efficiency
Data transformation tools improve data efficiency as they support end-to-end processes by establishing one-to-many ecosystem data exchanges. They also get rid of bottlenecks in the integration process by consolidating integrations to a single platform.
7. Improved compatibility
Often, an organization will use a single data set for many applications, requiring it to be compatible with different platforms. Through data transformation, you can easily convert data to a target format so you can repurpose it seamlessly.
The Challenges
The benefits of data transformation are undeniable but don’t make the mistake of thinking that it’s a walk in the park. The process of transforming data can get expensive. Infrastructure, software, and tools necessary to transform the data significantly affect its cost. Certainly, the more data you need to transform, the more expensive the process becomes.
Another challenge is the amount of resources data transformation requires. Executing the process on-site can place a lot of burden on computational power, which may negatively impact other operations.
Lastly, there is the issue of competence. Data transformation isn’t a completely automated process. It still requires the expertise of a human. If your data analyst or engineer is inexperienced, they may not detect errors in the data.
Conclusion
If your business isn’t taking advantage of data transformation, you’ll always be lagging behind your competitors. Data has evolved from being a luxury to a necessity. With how easy it is to accumulate data, investing in data transformation is a no-brainer.
