[The Essence of DX Vol. 2] Organizing Customer Data from the Entry Point Is the Shortcut to DX

The Sequence and Importance of Data for Achieving DX

There are three steps to achieving DX. We will explain these steps using customer data, such as business cards, as an example.

Step 1: Digitization

Convert information such as paper slips and business cards into digital data to make it manageable as digital information. By converting paper business cards into digital data, you can manage a large volume of business cards efficiently, which also leads to accelerating work-style reform.

Step 2: Digitalization

By introducing digital technologies to streamline and transform business processes, companies can achieve cost reductions and enhance value-added activities. For example, instead of manually digitizing business card data, utilizing Optical Character Recognition (OCR) systems allows for seamless data storage while reducing labor costs. Furthermore, by appending corporate attribute information such as industry and revenue, businesses can perform aggregation and analysis across diverse dimensions, which serves as a valuable asset for business strategy. The "NICE" framework advocated by uSonar is a critical methodology for supporting this process.

Step 3: Digital Transformation

Leverage digital data and introduce digital technologies to create new services and business models. For example, by integrating business card data with CRM or MA systems to build a unified data infrastructure accessible across the entire organization, companies can maximize Customer Experience (CX) and gain new competitive advantages.

Collecting Data Alone Does Not Achieve DX

The importance of digital data is essential for DX. However, there are many challenges in data utilization. For instance, different departments face conflicting issues: the sales department prioritizes order processing and is reluctant to spend significant time on data entry, while the marketing department requires detailed data. Such contradictions within an organization act as a major barrier to effective data utilization.

To advance DX, integration between business systems is necessary, and data is the key to that integration. If data is not properly maintained, system integration will not proceed smoothly. It is crucial to start by organizing data from the point of entry. Let us look at specific DX case studies supported by uSonar.

DX Case Study: Software Company

A certain software company develops and provides FAQ management systems and has implemented Dynamics 365 for customer management. Even after digitizing business cards collected at seminars and exhibitions, they faced issues with data duplication due to inconsistent naming conventions and corporate name changes, leading to redundant approaches to customers. For example, different departments would approach the same client company, causing customer confusion and distrust.

To resolve this issue, the company implemented uSonar and mSonar to achieve automated data cleansing and centralized management. As a result, business card data was instantly organized and utilized as consistent information within Dynamics 365. Consequently, the time required for data maintenance was significantly reduced, enabling the team to approach leads from seminars and events promptly and ensuring no business opportunities were missed. As a result, the number of segmentable companies increased fourfold, and the number of orders received increased by 1.25 times. This process benefited both the sales and marketing departments and improved internal business workflows.

Dark Data Hinders DX

Within the data accumulated by companies, "Dark Data" that remains unused and neglected is a major obstacle to DX. "Dark Data" refers to outdated information, duplicate data, or data that is difficult to utilize due to low accuracy. Over time, data becomes obsolete and loses its value. Neglected Dark Data increases storage costs and poses significant risks by providing misinformation during decision-making and customer interactions.

Furthermore, the existence of Dark Data entails security risks. Unmaintained data increases the risk of information leaks, which can lead to a decline in corporate brand image and potential legal issues. Therefore, it is necessary to maintain data quality and perform regular maintenance and reviews.

To effectively utilize "Dark Data," it is effective to introduce the concept of ROD (Return On Data). ROD is a philosophy that goes beyond simply storing data; it focuses on maximizing the value of that data and linking it to business outcomes. To achieve this, the thorough implementation of "NICE"—Standardization, Centralization, Correction, and Enrichment—is essential. This ensures data quality and strengthens the foundation for promoting DX.

By utilizing the "NICE" process to organize and integrate data, companies can prevent the generation of "Dark Data" and establish an environment where information assets can be utilized to their fullest potential.

Summary

To succeed in DX, it is crucial not only to introduce digital technologies but also to ensure data quality and maintenance. By maintaining and utilizing customer data through the "NICE" process, companies can achieve improved operational efficiency and create new business opportunities.

Additionally, by properly managing Dark Data and incorporating the concept of ROD (Return On Data), companies can maximize the potential value of their data and enable sustainable DX promotion. Companies are expected to actively engage in data maintenance to solidify the foundation for transformation.

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[The Essence of DX Vol. 3] Maintaining Customer Data from the Entry Point Is the Shortcut to DX ▶