The value of dark data: everything you need to know

What is dark data?

“Dark data” refers to information that is trapped or hidden in the depths of organizations' data ecosystems. This data is generally unstructured and/or has not yet been discovered. They are often stored in old databases that are difficult to consult and analyze. Dark data can also be found in unstructured documents and repositories, such as email threads or customer service logs.

While the concept of dark data has existed for decades, it has become more relevant in the age of big data. With the proliferation of machine learning, artificial intelligence, and other advanced technologies, businesses are generating massive amounts of data. This is in addition to the vast amounts of information they have been collecting for years.

Therefore, data has become a critical asset in many organizations. Each type of data has its own specific value, but data that is trapped and cannot be accessed or used has little or no value.

Why access and use dark data?

The first step in accessing dark data is to determine if it has any value. Accessing dark data can be very difficult, requiring new skills and tools to extract value from it. However, it is worth the effort. The value of dark data can be divided into two main categories: operational efficiency and strategic ideas.

Accessing and using dark data can help improve operational efficiency in a number of ways. First of all, it can make it possible to better understand the behavior of your customers. It can facilitate marketing and lead generation, as well as identifying new product and service ideas. Second, it can facilitate supply chain management, including inventory management and forecasting. Finally, it can provide a better overall understanding of your business, which can facilitate strategic planning and decision making.

How do you access and use dark data?

Before you can use dark data, you need to figure out how to access it. Depending on where the data is stored and what format it is in, accessing it can be a complex process. Here are some helpful tips based on the different types of dark data:

• Legacy Systems
  Legacy data systems are the main source of dark data, especially in the enterprise space. Access to and use of data from these systems may require a significant investment, as well as specific expertise. A proven approach is engaging with internal IT teams and/or data architecture teams.
• Unstructured data
  Unstructured data can come from a variety of sources, such as email feeds, customer service logs, or notes stored in a variety of digital tools. The first step in accessing this type of data is to transform it into a structured format that can be easily analyzed. Tools such as artificial intelligence and natural language processing can make this process easier.
• Data locked in silos
  Data that is locked in silos can be difficult to access and use. One solution consists to unify data in a single system, like a data warehouse or a datalake. This can be time consuming, expensive, and difficult. In addition, new technologies, such as data virtualization, can help extract data from different systems without having to physically access it.

Visualize the value of dark data

Imagine being able to look back to last year and see exactly how your customers shopped during the holiday season. You would know when they bought gifts, what they bought, and where they bought it. This level of knowledge could have a significant impact on your business:

• You could boost sales by targeting buyers during specific periods of time, or even by offering packaging or gift cards.
• You could also identify particularly popular products, which could help you develop your products and make buying decisions. Now imagine being able to go even further back and see how your customers shopped, decade after decade.
• You would have a complete view of your business, which would allow you to make strategic decisions about everything from marketing to product development.
• You could identify the best times to advertise, the most effective channels, the most popular products among your customers, and how your offers compare to those of your competitors.

Concrete examples of the benefits of dark data

Accessing and using dark data can bring a wide range of benefits to your business.

Here are a few examples:

• Better understand your customers
  When you can analyze customer data, you can better understand their needs and behaviors. This knowledge can help you adapt your marketing messages, improve your products or services, and identify new product ideas.
• Boosting your marketing efforts
  Marketing teams can use dark data to better understand their customers and tailor their messages. For example, they can target specific audiences or individuals based on their buying habits. They can also use this information to inform their buying decisions, such as when of the year to launch their campaigns or which products to promote.
• Improve your operations
  Operations teams can use dark data to make better decisions about inventory and supply chain. They can use information about past sales trends to forecast future demand, which can help with planning. They can also identify the best suppliers, which can reduce procurement costs.
• Improving decision making in your organization
  Dark data can facilitate strategic decision making within your organization. They can help team members make more informed decisions, such as when to start a new business or enter a new market. They can also help them identify opportunities to improve the business, such as expanding into new product lines or changing the pricing model.

The limits of dark data

As with any new technology or approach, there are a few limitations to accessing and using dark data. First of all, it may be Difficult to integrate unstructured data, such as email threads and customer service logs in your analytical systems. Second, accessing and analyzing dark data is often expensive. This is especially true for legacy systems, for which you may need to invest in new infrastructure or hire additional staff. Finally, accessing and using dark data are time-consuming processes that don't produce instant results.

Despite these challenges, accessing and using dark data can be worthwhile. They can help you better understand your customers, improve your operations, and make better strategic decisions. It can provide new insights that can help you grow your business.

Key points to remember

• Not all data is equal. Some data, like customer data, is very valuable. While other data, like unstructured data, is largely unused and under-exploited.
• Data that cannot be analyzed or that is locked up in unconnected systems is known as “dark data.” They have value when they can be analyzed and used.
• Dark data is on the rise as businesses collect and generate more data. It's important to know how to access and use them.
• The first step in accessing dark data is to determine if they have any value.
• There are a few ways to access dark data, but it's often a difficult process.
• The benefits of accessing and using dark data are well worth it. Unstructured data, such as emails and customer service logs, contains valuable information that can help you better understand your customers and operations.

‍

‍