Standardization Through Data Collection

Standardization is a process that can be and should be done by many companies in order to further understand the consumer, which then allows them to improve their services. In this blog, we’ll go over what standardization means, why it is so important, and how we can integrate it into data collection!

What is Standardization?

In order to do things correctly, it is important that people are educated on and understand what standardization is. Standardization allows for consistency. It is the process of implementing a set of clear guidelines based on the consensus of all relevant parties in the industry. These rules are based on the field’s collective knowledge and become something that these companies must adhere to when creating a product or service. Having these standards ensures that goods and services that are produced come with consistent quality and are equal to other comparable products/services in the same industry. This means that it shouldn’t matter who in the organization performs the task as the result will always be the same without the loss of productivity or quality.

Why is Standardization Important?

As mentioned before, standardization is necessary because it allows for a product or service to have consistent quality. If everyone performs a task the same way, the output and end product will consistently be of high quality. In addition, having an internal system of quality standards can help set a company apart from competitors. Another reason why standardization is important is due to the fact that it allows for predictability. To elaborate, you would know exactly what to expect, what the results will look like, and how long it will take. This would be beneficial for staff and managers when it comes to things like scheduling and making sure that production and projects are done on time. As a customer, standardization can be favourable as well, as they would be assured that the products or services they buy must meet a certain quality standard. Overall, standardization is a necessary development tool for organizations because it focuses on consistency, predictability, and helps build customer trust in products, services and systems.

Standardization When it Comes to Data Collection

Collecting data from customers used to be a process that was time-consuming and expensive. Now with modern day technology, there are more ways to collect data that are quick and efficient. There is no inherent value to collecting data; it requires sorting, processing and maintaining in order to offer true value, reveal patterns and yield insights. Data can enter a business from many different sources and in a variety of formats as well. If we were to feed inconsistent raw numbers into analytics systems it would produce unreliable outputs. Thus, it is essential to first organize and sort in order to weed out what would be considered “bad data” from the good. This allows analysts and others to research, analyze, and utilize the data efficiently and as accurately as possible. Data quality is becoming more important as business protocols shift to digital. It should be a top initiative for every company as poor and incomplete data collection can lead to a loss in revenue, wasted budget, and lack of brand growth. Furthermore, lack of quality data causes inability to accurately assess performance, sales, and the customer. A good way to view and understand it is: garbage in, garbage out. This means that poor data input will result in poor output, impacting the decision making and performance of a company.

What is Bad Data?

Bad data simply refers to data that is inaccurate for a business and is something they are told to avoid making use of. Examples can include data that has missing key elements, data that is not relevant for the purpose it’s used for, data that is poorly compiled. The use of bad data can significantly affect and harm the performance of the business therefore, it is important to be cautious about data collection as it can be just as important as the actual product or service.

Conclusion

Data is the backbone of business decisions and no industry can progress without relying on data. But to be able to utilize the data, it needs to be organized and then analyzed and compared. In order for a business to be successful, they must be able to utilize their data in a way that will ultimately benefit the consumer and their user experience.

References

BNQ. (n.d.). The importance of standardization. Retrieved from https://www.bnq.qc.ca/en/the-importance-of-standardization.html

Corporate Finance Institute. (2021, February 03). Standardization. Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/economics/standardization/

Grant, M. (2021, May 19). Understanding Standardization. Retrieved from https://www.investopedia.com/terms/s/standardization.asp

Jochem. (2020, November 24). Benefits of standardization in the manufacturing industry. Retrieved from https://www.ag5.com/benefits-of-standardization-in-manufacturing/

Lark, J. (2020, May 28). What is Data Standardization, and How Can it Work for You? Retrieved from https://www.business2community.com/big-data/what-is-data-standardization-and-how-can-it-work-for-you-02314646

TechTalks. (2020, March 21). What is bad data and how will it affect your business? Retrieved from https://bdtechtalks.com/2020/03/21/what-is-bad-data/

Trifacta. (2021, September 21). How to Standardize Data & Why You Should. Retrieved from https://www.trifacta.com/standardize-data-in-excel/