A critical business function that provides a competitive edge
Big Data has been described as the industry’s new oil, a valuable commodity which companies and brokers fight for to gain valuable insight into consumer behaviour.
The above value is entirely dependent on the type of data that is received. While it is a commodity that insurers and brokers are fighting for, it is a war of futility if the data hasn’t been sufficiently refined (cleaned).
FAnews spoke to Wikus Combrinck, General Manager: Business Intelligence Competency Centre at Tracker to find out the problems associated with unrefined (dirty) data.
Core to business
Before we unpack the dangers of dealing with unrefined data, it is worthwhile to look at what data means to a company like Tracker.
“We live in a world driven by data which is generated every day by countless different sources – sensors, texts, pictures, sounds, videos and databases – and businesses are slowly but surely turning to big data for decision making. Data can be shaped into meaningful bits of information that can assist in delivering better products and services to effectively address customer requirements,” said Combrink.
He added that it is important for us to remember that there is no value in any data unless you can derive actionable insights from it. The end result is not the analytics but rather the insight and action you get from the data you are analysing. “Processing and deriving meaningful information for clients is the biggest driver for our business. To best serve our customers, it’s imperative to analyse the data that flows in or out and work hard to give them the information that would benefit them,” said Combrink.
Spend time on refinement
If data is a major driver of value for a company, then it is logical that this is a business function that will require a lot of time, attention and resources (human capital and financial) to make sure that this value is realised.
“Data is considered dirty when it is outdated, inaccurate, used independently and there is missing information. Cleaning it is an important task that is often overlooked and can be costly. If left unclean, this data can create frustration, inefficiencies and cause an adverse effect for each department and stakeholders,” said Combrink.
He added that data governance plays an integral part in Tracker’s business by ensuring that data and information is treated as an enterprise asset. “Enforcing policies, standards and procedures that guarantees that our data and information assets are effectively governed and managed in accordance with good business practice is important to us,” said Combrink.
Be careful who you go to
Technology has created a lot of opportunities for new entrants into the insurance industry to come to the fore and establish a niche for themselves when it comes to the outsourcing of specific business functions.
However, this is a sticky situation. We are dealing with client information which could be seen as very personal. Bearing in mind the upcoming enforcement of the Protection of Private Information (POPI) Act at some stage in the near future, does a company insource or outsource the refinement of data?
“Both outsourcing and insourcing have their respective benefits, and neither is superior to the other, except to the degree that it helps the business meet strategic goals and business objectives. If the data is essential to the company’s business survival, it should be kept in-house,” said Combrink.
He adds that other analytics can be outsourced. However, whether an organisation chooses to outsource or insource, it's important to bear in mind the goals and objectives of the business. While cost-cutting can be a benefit, it's critical that this is not the sole deciding factor. Organisations need to choose whichever option that will help them to deliver a more seamless customer experience.
Editor’s Thoughts:
In an environment where companies are looking for ways to outdo their opposition, data refinement presents significant opportunities. Once a company finds their niche in the market, and data refinement is a critical business function, value could be added at significant rates. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
