You need a data strategy to harness AI

Despite the West Midlands’ strong industrial base, many businesses in the region are lagging in adopting AI and data-driven technologies. 

This hesitation stems from a combination of factors, including a lack of awareness, skills shortage, and concerns about the costs and complexities of implementation. 

According to the Artificial Intelligence Sector Study 2023 report, the West Midlands is actively adopting AI, particularly in manufacturing and automotive sectors. Additionally, the Local Government Association (LGA) Report notes that several local authorities in the West Midlands are exploring and implementing AI technologies to improve public services, with around 23% of councils in the region using or exploring AI, with varying levels of adoption. 

 However, by embracing AI and data analytics, West Midlands businesses could significantly boost their productivity, streamline operations, and gain a competitive edge in the market. Investing in AI not only promises enhanced efficiency but also opens up new opportunities for innovation and growth. 

 You need a data strategy to harness AI 

Data is now the most valuable commodity in the world, surpassing oil in terms of worth. Just like oil, data needs to be extracted, refined and distributed properly, but unlike oil, data is limitless and can be used in creative ways to drive value in a business. 

A whopping 76% of business are using data as an integral part of their business strategy and are experiencing benefits such as increased security and greater agility with every successful company leveraging data as an asset. 

Data is a key business asset 

Data powers innovation, optimisation and digital transformation, firms that have made the shift have been enjoying decreased risk, increased efficiency and have driven growth, using tools such as advanced analytics, reporting and business modelling. 

But that still means a significant 24% are not taking advantage of the benefits that a data strategy can bring and run the risk of being left behind. Businesses that do not use their data will struggle to compete and innovate. 

One multinational manufacturing client saved significant money after investing in a data strategy. In the first month the company discovered that two departments were buying the same products from the same company at different prices. Analysing the data helped them renegotiate the deal and save £2m from their bottom line. 

People drive data 

After data, people are the second most valuable assets. While data is a powerful asset, it is only as useful as the people who understand and use it. Data is like the oil, but your people are the engine that make it work. 

It is important to empower those employees and make sure they have the right tools to use the data correctly. 

The question many ask is how to build that data-driven culture, it is important to empower employees with the right tools and the right training to interpret that data. A data-driven culture is not just about tech, but it is about mindset, habits and skills. It starts from the top down, from the executive level C-suite, but it must propagate to every corner of a business. 

Collaboration between data departments in every business is key, data needs to be actionable. 

Be sure to democratise data across the whole organisation and make it accessible to everyone. An effective data strategy gives people the information they need to make better decisions faster. It empowers your employees to take action. 

Harness the power of AI 

It is hard to ignore the impact of artificial intelligence (AI) on a data strategy, we are moving away from reporting to predictive and prescriptive analytics that can help businesses predict future outcomes. 

It is an evolution from scripted analytics, i.e. what happened last week? To predictive, what is going to happen and how much will I sell? And on to prescriptive, what should I do about it? 

AI and machine learning can help business not only analyse the past but also predict future business outcomes. AI can help optimise operations from predictive maintenance in manufacturing to personalised marketing in retail. It can assess when things do not look right and predict future failure. It is much cheaper to fix something before it breaks, rather than risk losing stock and experiencing downtime in your business. 

Machine learning is becoming more prevalent in spotting patterns and trends that are invisible to human analysts, using algorithms that are far too complex for human beings to spot. If you can predict the future then you get competitive advantage. 

How can businesses leverage AI? 

Machine learning: 

• Client insights and predictive analytics 

• Capacity planning and resource optimisation 

• Predictive maintenance and monitoring 

 Chatbots: 

• Website Frequently Asked Questions 

• 24/7 customer support 

• Personalised recommendations 

Marketing tools: 

• ChatGPT – for research and text content generation 

• DALL.E – for social media image creation 

• Sora – for marketing video creation  

Think about your business strategy and integrate data 

Every business needs a business strategy, from business development to customer experience, so why not harness data and integrate data into your strategy to gain insights on everything from product development to customer experience. 

Start small but aim big and get good advice. Do not to try and do everything at once. If you fix lots of small things your business will evolve naturally.  

The future belongs to businesses that can harness the power of data. 

ABOUT OUR AUTHOR:

Hollie Whittles is a passionate advocate for digital skills and apprenticeships. She is an award winning TEDx speaker, author and Director of two West Midlands based digital companies – Purple Frog Systems and FraggleWorks. She is also the National Policy Skills Champion for the Federation of Businesses (FSB).

Hollie is a member of CNM’s Digital Leadership Board and is excited to bring the voice of small business to the table. She is keen to help break down barriers and ensure that the digital skills needed by all sizes of business are accessible to bridge the skills gap and digital divide.