The Essence of DX Vol. 3: Organizing Dark Data Promotes DX

On average, 57% of data held by companies is "Dark Data" that remains unused.

Data built by companies can be broadly categorized into the following three types:

• Clean Data: Data that is determined to be valid and can be utilized for business.

• Dark Data: Data that was temporarily useful but is now dormant because its value has not been recognized.

• ROT Data: Redundant, Obsolete, and Trivial data.

According to an article in the Nikkei newspaper dated July 4, 2020, an average of 57% of data held by companies is considered "Dark Data." In addition, ROT data is also prevalent within organizations. Leaving these unaddressed leads to various negative factors, such as increased storage costs and the risk of brand erosion due to data breaches.

As digitalization accelerates as a precursor to achieving DX, companies are creating and storing data at a rapid pace. In B2B sectors specifically, data accuracy and freshness are easily lost due to factors such as company name changes, relocations, bankruptcies, and mergers, which leads to an increase in Dark Data and ROT data, resulting in mounting unnecessary costs.

Building a data infrastructure for ROD offers greater cost benefits.

Many companies assume that building an infrastructure for ROD to prevent the creation of Dark Data is prohibitively expensive. While it is true that labor and processing costs for data maintenance are increasing, the evolution of IT has simultaneously lowered the cost of data retention itself.

uSonar performs daily data maintenance. In 2019 alone, there were 91,104 company name changes (including business locations) and 159,581 address changes. Since company name changes, relocations, and bankruptcies occur on a daily basis, manual processing is impractical. While irregular, spot-based data maintenance is effective, data is constantly changing; therefore, building an infrastructure that performs automatic, real-time maintenance is more cost-efficient in the long term.

To achieve DX, it is essential to utilize organized data in real time. Building an infrastructure for ROD to prevent the creation of Dark Data not only improves operational efficiency but also serves as a means to enhance the overall competitiveness of the company.

Case Study 1: Major System Integrator

A major system integrator, which is part of a large corporate group, provides one-stop services ranging from consulting to operations. The company focuses on inside sales to create business opportunities that lead to negotiations, and it needed to analyze the number of prospective customers and generated projects by utilizing precise data. However, because registration and change requests from sales representatives were processed manually, time lags occurred.

To address this, we implemented a data integration tool and synchronized it with e-Sales Manager (SFA), enabling automatic maintenance for updates such as company name changes and address relocations. As a result, we reduced the costs and man-hours previously required to maintain data freshness, creating an environment that allows us to focus on inside sales. Furthermore, we are now able to calculate metrics based on accurate, real-time data, which has led to the optimization of our process management.

Case Study 2: Contract Software Development Company

At a major contract software development company, data was scattered across various departments and campaigns, hindering coordination in sales activities. Because data maintenance was performed manually, the operational burden was significant, creating an environment prone to the accumulation of dark data. This ultimately slowed the speed of business development.

By implementing a data integration tool, the company automatically consolidated data scattered across departments to build a master database and achieved automated data maintenance. Consequently, the 26,200 annual hours previously spent on data entry and maintenance were reduced by 51%, resulting in 13,300 hours of operational savings. The time gained is now utilized for developing new business models and services, achieving both operational efficiency and innovation.

Integrating and Utilizing Online Data for a ROD-Ready Data Infrastructure

Automating data maintenance and converting dark data and ROT data into ROD is crucial for facilitating smooth DX. However, to truly realize DX, it is necessary not only to organize data but also to actively utilize it to extract value.

In B2B digital marketing, research by Gartner has revealed that a significant portion of the purchasing process is completed before a sales representative even makes contact. By capturing potential needs through corporate websites and online channels and analyzing the behavior of prospective customers, companies can execute more precise marketing initiatives. This requires an environment where online data can be integrated and analyzed in real time.

By strengthening the ROD infrastructure, companies can leverage online data for targeting and predicting customer purchase intent, providing a consistent customer experience from marketing through to sales. Furthermore, by integrating online-acquired data with offline customer data, companies can perform complex analyses and gain more sophisticated customer insights. This allows businesses to design optimal approaches for each customer and implement efficient sales strategies.

By leveraging a robust data infrastructure, companies can move beyond mere information storage, enhance their competitiveness through real-time data utilization, and achieve sustainable growth in their DX initiatives.

Conclusion

It is critical for corporate DX initiatives to properly maintain "Dark Data" and ROT data rather than leaving them unmanaged, and to practice Return on Data (ROD). By establishing a robust data infrastructure and automating daily data maintenance, companies can simultaneously achieve cost reduction and improved operational efficiency.

Furthermore, well-maintained data generates new value in marketing and sales activities, serving as a key factor in enhancing competitive advantage. By utilizing data strategically, companies can achieve true success in their DX initiatives.

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The Essence of DX is a four-part series.
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The Essence of DX Vol. 4: How to Utilize Data to Accelerate DX ▶