Opinions expressed by Entrepreneur contributors are their very own.
The parable of “The Blind Males and The Elephant” tells the story of six blind males who come throughout an elephant for the primary time. They every study a unique a part of the elephant. The trunk. The ears. The tusks… You get the gist.
Consequently, every individual involves a really completely different conclusion about what an elephant is.
They’re all partly proper — but additionally solely mistaken.
The ethical of this story is easy. Completely different views and incomplete info can result in various — and infrequently inaccurate — interpretations. It is an outdated story. But it surely’s a fable we should always pay shut consideration to in our fashionable world. Particularly when working with knowledge.
Associated: Utilizing Information Analytics Will Rework Your Enterprise. This is How.
Much less will (nearly) all the time be extra
Enterprise leaders worldwide need to use their knowledge to make higher choices and get extra correct insights into their enterprise.
However usually, companies could have a number of layers of their tech stacks. Some are new. Some are outdated. Some are built-in. Some are completely siloed. Every of those layers captures completely different knowledge. And also you get inaccurate insights when these items aren’t speaking to one another.
Companies have entry to extra knowledge than ever earlier than. However amount would not equal high quality.
For a lot of organizations, the precise high quality of their knowledge is being diluted. You create misaligned incentives by having so many various components in your tech stack. One facet of your stack could let you know one factor, however then the following half can contradict it. We see this rather a lot in promoting know-how. A myriad of various shopping for platforms, knowledge companions, publishers, analytics instruments, CRM, segmentation instruments and extra. Typically, it turns into so messy over time that it is onerous to get the actionable knowledge you’ll want to create insights, actions, and enterprise affect.
Entry to a number of knowledge units doesn’t equal good knowledge. knowledge units in silos is a simple solution to paint the mistaken image, which will increase the probability of poor decision-making.
Information is thrilling, however you want to have the ability to view it in a single place, which is why I believe the ideas of vertical integration must be carried out right here.
Vertical pondering
Vertical integration is a method that enables an organization to streamline its operations by taking direct possession of processes. In different phrases, it lets you management your individual future. In idea, it provides companies higher efficiencies, lowered prices, and extra management of the manufacturing and distribution course of. Tesla is a well-known instance of this mannequin follow.
Tesla carried out vertical integration throughout its enterprise construction — however with a serious concentrate on two key features: battery manufacturing and power storage. Tesla knew that batteries have been crucial to EVs – and that success hinged on proudly owning a extremely contested battery provide chain. This enterprise allowed Tesla to leverage its experience in battery know-how and apply it to the power storage market, creating synergies and shared assets throughout completely different product strains.
It does every thing from designing the automobiles, constructing the tech, and making its personal chips to promoting the automobiles. Every part is in-house, that means provide chain points or manufacturing companions do not gradual it down. This integration has helped the corporate scale its operations, drive technological developments, and place itself as a sustainable transportation and power options chief.
Proudly owning your knowledge can work in the identical means. However with out the necessity to construct a multi-billion greenback gigafactory in Nevada.
By taking management of your tech stack and possession of your info, you acquire a extra holistic view of what’s taking place with your small business. And also you additionally insulate your self from points within the outdoors world.
That is invaluable by itself. However this singular view turns into much more highly effective if you issue within the exponential progress of AI and ML applied sciences. Making use of these instruments to a vertically built-in knowledge set can remodel a enterprise and unlock beforehand unknowable insights.
Primarily in case your knowledge is disparate and never nicely built-in, you possibly can by no means get to the “Unknown Unknowns”—the stuff you did not even know to ask about. There are patterns invisible to human eyes. You possibly can solely see these with good knowledge.
Extra insights. Extra effectivity. Extra management. Vertical integration affords companies management of their provide chains. However there are challenges, too. Even when you aren’t constructing enormous factories, you want funding and assist to make the mandatory modifications. And most significantly, you’ll want to be certain that changing into self-reliant does not imply you get tunnel imaginative and prescient and lose sight of developments outdoors your small business.
Associated: 8 Methods Information Analytics Can Revolutionize Your Enterprise
Information and elephants
If you happen to take a look at completely different knowledge units in isolation, you’ll seemingly emerge with an incorrect thought of what an elephant — aka your small business — actually is.
You may be partly proper in locations, however additionally, you will be solely mistaken.
Vertical integration permits leaders to see the complete image of their enterprise — from buyer to artistic, hoof to tusk.
