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

The Sequence for Achieving DX and the Importance of Data

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. By converting paper business cards into digital data, you can manage a large volume of cards efficiently, which also helps accelerate 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 smooth data storage while reducing labor costs. Furthermore, by appending corporate attribute information such as industry and annual revenue, data can be aggregated and analyzed across various dimensions, which is highly beneficial for business strategy. The "NICE" framework advocated by uSonar is a vital method for supporting this process.

Step 3: Digital Transformation

By leveraging digital data and introducing digital technologies, companies can create new services and business models. For instance, 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.

Data Collection Alone Does Not Achieve DX

The importance of digital data is essential for DX. However, there are many challenges in data utilization. For example, different departments face conflicting issues: the sales department prioritizes order processing and is reluctant to spend time on data entry, while the marketing department requires detailed data. The existence of such contradictions within a company acts as a significant 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 maintaining data from the initial input stage. 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 variations in notation and company 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 automatic 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 rapid approaches to leads obtained from seminars and events, 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 Digital Transformation

Among the data accumulated by companies, "Dark Data"—data that remains unused and neglected—is a significant obstacle to digital transformation. Dark Data refers to outdated information, duplicate records, 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 serious risks by providing misinformation during decision-making and customer interactions.

Furthermore, the presence 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 essential to maintain data quality and perform regular maintenance and reviews.

To effectively utilize Dark Data, introducing the concept of ROD (Return On Data) is highly effective. 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 crucial. This ensures data quality and strengthens the foundation for driving digital transformation.

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 digital transformation, it is vital to focus not only on introducing digital technologies but also on 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 digital transformation. Companies are expected to proactively engage in data maintenance to solidify the foundation for transformation.

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The Essence of DX is a four-part series.
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[The Essence of DX Vol. 3] Organizing Customer Data from the Entry Point Is the Shortcut to DX ▶