The importance of Knowledge Management and how data analysis informs marketing strategies
Knowledge management is crucial for companies to succeed. Knowing your business and your customer’s needs, wants and behaviours help businesses to inform their marketing strategies, increase their revenue and their market share. In the digital age, the majority of this knowledge comes in the form of data. However, data gathered by businesses is unrefined and difficult to read. A large company would have thousands of rows and columns of raw data on spreadsheets which would be extremely difficult to read and impossible to draw insights from. As Steve Denning stated “Nothing can be managed unless and until it is measured. Because knowledge per se has no value in itself, it has to be measured in relation to the strategy it is intended to accomplish.” (Denning, 2021). This blog will outline the knowledge management and analytics processes which transform this raw data into actionable information.
The two main analytic types that companies use to analyse their data are information analytics and operational analytics. Information analytics is the process of finding the information within the aforementioned raw data that is relevant and useful to the company. Operational analytics is the processing of the data gained from business operations.
This data then must be analysed
in different ways depending on the insights the company wishes to gain from the
data.
- Diagnostic
analysis: This method compares current data to historical data to find
patterns.
- Predictive analysis: This method uses both the above methods to predict future trends in the market. It relies on the market being steady and the calibre of the source data.
- Prescriptive
analysis: This method uses all other types of analysis to prescribe actions and
strategies for a businesses marketing. This process can be automated through
machine learning and if done correctly is highly efficient.
- Cognitive analysis: This method uses artificial intelligence to create hypothesis to cater to your customers future needs. An example of this would be Google Home.
Which of these processes a
business implements depends on the types of market the business is in, along
with other factors (Size of company, amount of data, etc). Prescriptive and
cognitive analysis are becoming increasingly popular with increasing innovation
in the technologies required for their implementation. After analysing this
data it must be presented to employees in a manner in which they can understand
through reports, graphs, charts and various other methods. Data visualisation
transforms this analysed data into actionable information that the company can
then use to inform their strategies.
The importance of knowledge management and the way in which a company analysis its data is hugely important in the modern marketplace. Spotting trends, predicting future shifts in the market and trying understand your customers future needs are crucial to a companies digital marketing strategy and the growth of a business. As Quast wrote “By proactively implementing knowledge management systems, companies can re-write the old saying, “Change is inevitable, growth is optional” to “Change is inevitable, growth is intentional.”” (Quast, 2021)
Author: James White.
#digitalmarketing #knowledgemanagment
#dataanalysis #marketingstrategy
References
Denning,
S., 2021. Ten Things You Need To Know About Managing Knowledge. [online] Forbes. Available at: <https://www.forbes.com/sites/stevedenning/2012/05/31/ten-things-you-need-to-know-about-managing-knowledge/?sh=418f4dbe118f>
[Accessed 30 March 2021].
Quast,
L., 2021. Why Knowledge Management Is Important To The Success Of Your
Company. [online] Forbes. Available at:
<https://www.forbes.com/sites/lisaquast/2012/08/20/why-knowledge-management-is-important-to-the-success-of-your-company/?sh=155eca863681>
[Accessed 1 April 2021].
Really well explained, James. There is a variety of ways to mine the value of data analytics and businesses should always be aware of the options available to them.
ReplyDeleteAlways good to remember that strategies come from situational analysis and definition of objectives and, while small and medium companies have this on mind, they can extract consistent, valuable and useful insights for their managers and supervisors.
A tailored and personalised message to their customers through strategies is key to thrive in the digital transformation businesses have been facing recently. For example, the predictive and prescriptive methods, where businesses can identify trends and apply it wisely to their online communications, keeping themselves relevant and consistent.
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ReplyDeleteBrilliant, James! The importance of knowledge management is in constant growth. As the marketplace becomes ever more competitive, one of the most reliable techniques to stay ahead of the curve is to build a company in an intelligent, flexible manner. The ability to be able to detect issues from a distance and respond quickly to new information and innovations makes a difference to businesses to increase their bottom line and market share.
ReplyDeleteFrom a customer service point of view, a knowledge management system is the most effective step to help increase satisfaction, reduce customer support costs and rise ROI for any type of organisation. While one of the tactical aspects is educating customers to successfully interact with products and services.
Brilliant, James! The importance of knowledge management is in constant growth. As the marketplace becomes ever more competitive, one of the most reliable techniques to stay ahead of the curve is to build a company in an intelligent, flexible manner. The ability to be able to detect issues from a distance and respond quickly to new information and innovations makes a difference to businesses to increase their bottom line and market share.
ReplyDeleteFrom a customer service point of view, a knowledge management system is the most effective step to help increase satisfaction, reduce customer support costs and rise ROI for any type of organisation. While one of the tactical aspects is educating customers to successfully interact with products and services.
Knowledge management is indeed crucial for a business' productivity and profitability. Kudos to you James for explaining it so well! Businesses benefit from the ability to spot problems from afar and react rapidly to new knowledge and developments, which helps them improve their bottom line and market share. It is widely acknowledged as a critical tool for gaining a competitive edge and enhancing organizational efficiency. Knowledge Management performance assessment has become increasingly important as it provides companies with guidance on how to improve their performance and competitiveness. In today's marketplace, information management and the manner in which an organization analyzes the data are extremely significant.
ReplyDelete