Why Analyzing Your Data Impact is Important

In business, data is all around you, but have you taken a moment to consider the impact all of this data has on each aspect of your operations? If not, you may need to conduct a data impact analysis.

A data impact analysis is a full analysis of when, where, how and why data impacts your business. From examining how data personalization works to improve customer service to reviewing how data influences strategic planning, an analysis of your data’s impact can help you streamline your business and reduce data overload. Only keep the parts you need and eschew the parts you don’t.

How to Conduct an Analysis of Your Data’s Impact

To conduct an impact analysis of data, you first need to establish objectives and key performance indicators (KPIs). These will sharpen the focus of your analysis to keep everything on track.

Next, you will want to gather your data and clean it. Cleaning data is the process of eliminating outliers and anomalies that don’t serve a purpose within your analysis. You can also address missing values when cleaning data to ensure you have a complete picture to work with.

Before you get to the actual analysis of your data, you will also want to examine trends and patterns. These can play a role in your final analysis since they offer high-level information about how your data behaves.

What to Do With Your Results

After you’ve completed your analysis, you can measure your results against your KPIs and initial goals. In some cases, your goals will have changed throughout an impact analysis as more data has come to light or as trends emerge in your exploratory analysis.

Try to look for signals within your data that may indicate the strength of impact. Some data has little impact on its own but added together, small impacts can add up to a much larger overall impact in time. Taking this into consideration is important to avoid missing important information that could affect your bottom line.

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