2022: a year of data transformation in key sectors
Malka Townshend, COO at Sagacity, Provides 2022 Forecast for Data Transformation in Water, Energy and Telecom Sectors
The future looks bright for data transformation initiatives.
The data would be now more valuable than oil and its transformative nature is certainly undeniable. From bank of england overhaul its data collection, to the NHS requiring integrated care systems To set up digital and smart data platforms by April 2022, I think next year will see data transformation become mainstream. However, as organizations focus on how to get the most out of their data, challenges remain. For example, 41% of companies are frustrated that they have not yet been able to use the data to make decisions, while Gartner says poor data quality costs organizations every year an average of £ 9.6million.
As 2022 will be the year when data transformation takes center stage across all industries, organizations must take action to overcome obstacles such as lack of actionable insights, data migration challenges, and disruption. data best practices to take full advantage of it.
Here are three examples of how organizations can achieve data transformation success in 2022:
1. Water providers must use the power of data to climb the Ofwat performance charts
Most vendors were fairly evenly matched Ofwat‘s latest performance report, but they can use the data to move up the rankings in 2022. The water regulator’s recommendation to improve customer satisfaction through a better billing process is one example – data is key to make invoicing as smooth as possible. By cleaning up the data to make sure names and addresses are correct, suppliers can be sure invoices are reaching customers. This will protect them from the shock of a huge bill coming in, or the stress of having arrears and collection agencies chasing them for money they didn’t know they owed.
Ofwat’s report also urges providers to do more to find the “hardest to reach” customers who should be on their priority service registry, which requires specialist know-how to identify those customers and engage in their engagement. in a way that resonates with them. This year, most vendors have kept bad debt provisions the same, or increased them, as COVID-19 continues to have an impact. However, by using data to identify vulnerable clients, they can make a real difference both for those in financial difficulty and eradicate the debt problem at the source. Third-party data, such as information on disposable income, spending patterns, and benefit payments, can help identify who is entitled to reduced rates and other aids, so the provider can contact people. proactively and make sure they get the help they need.
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2. Energy companies must overcome data migration challenges to ensure customers don’t fall through the cracks
Many energy companies have a difficult year ahead. While gas prices have fallen with increasing supplies from Russia, the recent disruption that forced 24 suppliers to close in 2021 is far from over. Those that survived will emerge with new clients, after the accounts of the collapsed companies were reassigned to new suppliers by the industry regulator, Ofgem. This means that many of them will start the new year by welcoming these customers, creating their accounts and integrating their data into the larger ecosystem.
If they do not get the data migration in place, customers can experience a variety of issues. Problems can range from transferring at the wrong rate or disrupting debt repayment plans to sending their bill to the wrong address resulting in bill shock later in the year.
There could be even more damaging consequences for financially vulnerable clients. With the pandemic push thousands of people in the UK into poverty, it is more important than ever that these people are proactively identified using data and given additional support. Therefore, it is essential that vendors clearly define who their financially vulnerable customers are and understand how best to serve them as part of their onboarding process. They need to succeed with the data migration in 2022, ensuring that data is cleansed, formatting is standardized, and good processes are in place to ensure they have accurate and complete customer data from the start. In this way, customers will have positive experiences which can benefit suppliers when consumers decide to stay with their new supplier for the long term.
3. Telecom companies should prioritize data integration to get the most out of M&A activity
The value of telecommunications mergers and acquisitions has increased by 17% in 2021, and this number is expected to increase further in 2022. As we have seen with Virgin Media and O2 Volt launch Just 150 days after the announcement of their merger, these mergers and acquisitions can offer attractive new services to clients of both companies in a very short period of time. As such, we can expect the major telecoms mergers and acquisitions of 2022 to follow suit, with ambitious targets for how quickly the benefits will be delivered.
However, to identify these new pockets of profitability through data insights, merging organizations must first overcome the challenges of data integration. Some of these, such as licensing or duplication of systems, are typical of any merger and acquisition, but issues such as network infrastructure complexity, legacy systems, and a siled data culture are also more common. specific to the telecommunications sector. This can make it extremely difficult to associate systems and datasets, let alone provide meaningful information about the packages and services that customers want. This could lead to the worst-case scenario in which the existing IT systems of both organizations would operate side by side with half the business isolated from the other.
To reap the rewards of a timely merger and acquisition, they must clean up data, fill critical gaps, improve data collection processes, and use analytics, creating a single view of the customer. This can then be used to find areas of profitability, test new models, identify key sales channels and processes, to ultimately deliver compelling new offers to customers.
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On the road to success in 2022
There is much to look forward to in 2022. Hopefully the story of the success of the COVID-19 vaccine booster continues, by monitoring the impact of the new variant, we will also see how leaders transform their COP26 commitments into decisive actions that are fighting climate change, and may even have a return to the status quo during the summer vacation season. However, as many companies in major industries are undergoing data transformations, it is essential that they focus on setting goals for how information will be used, on data migration, and on how the information will be used. integration of different data sets. Organizations need to review their data practices, determine where changes need to be made, and identify ways to better support their customers to ensure the next 12 months are truly a success.