Learn Technological Trend: Datafication

In the implementation of technology in the business realm, there is one term that has become a trend, called datafication. Datafication could be defined as a process that has been done to convert major aspects within business scope to data that could be easily managed and measurable. With datafication, a company could easily transform into a data-driven enterprise that allows real-time data tracking and the use of predictive analysis functionality.   Alongside implementation of datafication, there are several things that can be highlighted as reasons why datafication becomes a bright future in the world of technology: 

• Improvement of Products and Services Value 

By providing real-time data tracking functionality, the implementation of datafication can help increase the value of the products and services offered by businesses. This is because with real-time data, the process of collecting and distributing data related to the products and services offered is also more efficient. Thus, it can provide value that is more focused on customer needs. 

• Emerging Business Model 

Datafication helps shape new business models that can create a new data analytics culture that encompasses all aspects of business. This new business model will be closely related to AI and Machine Learning algorithms to optimize data analysis for the decision-making process. 

• Shift to Cloud Computing 

As a form of technology implementation that follows trends, the datafication process also helps a company or organization to migrate to cloud computing more easily. Cloud computing will help companies to embed their entire infrastructure in the cloud. This will make the infrastructure more secure and flexible. 

Despite its advantages, the datafication process also poses its own challenges in implementation. Some of these challenges are: 

• Legal Aspect 

On the legal aspect, datafication itself has not been fully accepted. Some legal parties have the view that datafication can threaten a person’s basic right to privacy. This is because with datafication, organizations are required to actively manage customer data. 

• Technical Aspect 

With the datafication process, the technical challenges will be more significant, especially regarding the actions that must be taken to protect the data. Some of these actions include data access control, encryption, and firewall implementation. 

Some examples of datafication implementation in some industries include: 

• Banking and Insurance Industry: Data for risk profile and trustworthiness of the person applying for loan. 
• Social Science: Data for sampling techniques 
• Company Management: Data for employee profiles and recruitment tests.  

Referensi: 

https://www.datasciencecentral.com/the-concept-of-datafication-definition-amp-examples/ 

https://www.airswift.com/blog/datafication 

https://policyreview.info/concepts/datafication