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5 Data Trends Entrepreneurs Need to Know in 2020

Posted: 28 Nov 2019 08:00 AM PST

One of the most amazing things I've experienced over the last few years is the ever-increasing rise in how much we as entrepreneurs depend on data. It seems that I can now track almost every metric imaginable, which helps me get a better pulse on how things are going for my business.

But while this offers many opportunities for me and other entrepreneurs, getting the most out of our data isn't always easy. After all, if you have too much data and don't know how to use it, you're really not much better off than if you didn't have any data at all.

The good news is that new technologies and opportunities continue to spring up in the realm of data. These trends can make a meaningful difference for all entrepreneurs, regardless of industry. By taking advantage of some of the data trends on the horizon, you'll be able to set your business up for success in 2020 and beyond.

1. Automation and AI become even more commonplace.

AI already plays a key role in many industries by helping businesses cut costs associated with mundane tasks. The collection and analysis of data is no different.

Because I work with e-commerce, I've seen firsthand just how time-consuming manual data entry can become. It's also all too easy to type in the wrong numbers when inputting data yourself. A minor typo may not seem like a big deal, but for e-commerce brands, it could mean not ordering enough stock and missing out on sales opportunities because you miscalculated demand for a particular product.

More and more businesses are linking their systems to software programs that automatically upload, record and organize data from various sources, such as website sales or warehouse information.

Automated data capture ultimately allows businesses to become more efficient by eliminating paperwork and streamlining the workflow for employees. It also helps you address the "1-10-100 rule" sometimes cited with data collection – for every $1 it costs to prevent a data mistake, it would cost $10 to correct it and $100 if the mistake went undetected.

2. Companies take a unified approach to business intelligence.

One key issue that has kept many businesses from being able to take full advantage of their data is the fact that so many continue to use multiple data sources that are completely separate from each other. Having "siloed" sources of information often means that the sales team can't share its data with the manufacturing team and vice versa. While this may not seem like a problem at first glance, it can contribute to costly miscommunications, errors due to double data entry and other problems.

As a result, expect more businesses to start seeking a more unified approach to business intelligence in 2020, as illustrated by a case study from Sisense. The headphone manufacturer Skullcandy had over 100 million rows of data spread across five siloed data sources. Consolidating that data into a single unified resource allowed for easier creation of reports and data. The company found itself gaining valuable sales insights within a week of the transition to the single platform – insights that it would have completely missed otherwise.

By using a single platform that draws and shares data from all areas of your company, everyone will have the information they need to work more efficiently and gain crucial insights into the actions your company needs to take.

3. Algorithms become more involved in decision-making.

Data management tools have reached the point where they no longer just collect the data – they can also help you make key decisions to guide your business forward. By drawing from the information already within their systems, these tools can present key insights, forecasts and more to help you make smarter decisions.

As Mathias Golombek explained in an interview with Database Trends And Applications, database automation makes it easier to address the decision-making that occurs 24 hours a day. Using intelligent algorithms and data analysis can help automate many decisions to reduce mistakes and make decisions faster and more efficiently.

When data tools get more closely involved in the decision-making process, it allows businesses to become more agile. In other words, they are better able to adapt to and even predict market changes, then adjust their plans accordingly.

The results speak for themselves. The Harvard Business Review reports that an agile management approach compresses innovation cycles by over 75%. Research from the Standish Group shows that projects using agile management are twice as likely to be successful as those using "waterfall" management.

Get better data, become more agile and success is sure to follow.

4. Prescriptive analytics enters the fray.

Data is already making it easier for business owners to make smarter decisions. But it appears that soon enough, your analytics software could actually offer suggestions on what your business should do based on the information available.

So how does this differ from the last trend I talked about? Most forecasting and analysis tools offer predictive analytics. These tools use data to make a rough estimate of what could happen in the future – both for your business and the marketplace as a whole.

Prescriptive analytics doesn't just tell you what it thinks might happen based on the data. It tells you what you should do about it.

As Investopedia explains, prescriptive analytics help reduce fraud and risk, while also helping businesses increase their efficiency, meet goals and address the needs of their customers. This data helps eliminate uncertainty by simulating various outcomes that could occur from different courses of action, as well as their probability. This allows businesses to more fully understand the risk and opportunity associated with each decision.

This system is heavily dependent on machine learning, and once again enables businesses to become more agile. Don't be surprised to see more tools offering prescriptive services in 2020.

5. Data use becomes increasingly commoditized – and controversial.

With the many exciting opportunities being offered through advances in data analytics, machine learning and AI, there is one increasingly prevalent issue that I expect to be even more so in 2020.

The use of data as a commodity.

As early as 2017, economists were saying the data had become the world's most important commodity, even more so than oil. While this has been debated quite a bit since then, I think it will be especially relevant going into 2020.

After all, as helpful as your company's own internal data sources may be for driving business decisions, there is no denying that the vast majority of us rely on third parties like Google and Facebook to learn more about our customers. This is a big money-making business for these brands. In fact, Android Authority reports that Facebook averages earnings of $7 per month per user based on data sales.

In light of continuing controversies regarding the ways these companies use, share and profit from customer data, don't be surprised if legislators and other interested bodies get increasingly involved in trying to make these organizations more transparent with the general public. There's a good chance it could impact the way you collect the data you need to run your business.

Getting the most out of your company's data isn't always easy – I know there have certainly been times when I've felt nearly overwhelmed by just how much information was out there. But as you tap into rising trends that allow you to make better use of your data, you will gain the insights you need to ensure a profitable future for your brand.

The Benefits of Mind Mapping for Busy Professionals

Posted: 28 Nov 2019 05:00 AM PST

Everyone's attended a class where their primary responsibility was to memorize and learn facts. As long as you remembered all the facts and you could prove it – for example, during a test – you passed the class, but you may not have fully understood what you memorized. You most likely failed to retain most of the new information.

Mind mapping, however, is a better way of absorbing knowledge. You can use it for anything from creating a plan for developing a healthy habit to fleshing out a pivotal business idea. It involves building on ideas that you already know and comprehend so that you can absorb new concepts with a real understanding and better retention.

What is mind mapping?

A mind map can help you learn a large, unfamiliar body of concepts. It's a technique that involves using both the left and right sides of your brain to absorb new ideas. The visual aid created during a mind-mapping exercise can help you to organize new information as it correlates to a new central concept. Once you establish a new central concept, you can build out your mind map with branches of related sub-concepts.

Eventually, you'll create a hierarchy that shows the relationship between a concept that you already understand and the new one. Mind mapping works because it takes advantage of the natural cortical skills used to process and absorb new information.

Mind mapping can help with retention and learning

Mind mapping enables meaningful learning, which occurs when you retain new knowledge by connecting it to existing knowledge. Mind mapping forces your brain to make the connections between what you know and what you've just learned. Learners make this connection by mapping discrete pieces of information around a central theme. 

Historically, the Romans used the loci visualization technique to absorb and consume new concepts. The loci technique involves developing mental visuals that enable an individual to recall large bodies of information, such as a speech.

Mind mapping work similarly, and it provides the same positive benefits of the method. In part, this is because the diagrams used in mind mapping make it easier to retain information.

Meaningful engagement is essential for deep learning. However, most traditional learning methods do not promote meaningful engagement. Mind mapping works better than memorizing facts because learners participate in brainstorming, generating ideas and connecting concepts while creating a visual that is easier to remember.

Some of the most complex aspects of business are planning projects, developing knowledge search bases and strategic planning. Mind mapping simplifies these kinds of complex business tasks. They enable executives to consume, understand and retain complex issues quickly.

A survey conducted by mind mapping expert Chuck Frey reveals that more than half of respondents use it for project and knowledge management, and almost 40% use it for strategizing. Some 92% of participants in Frey's survey express that mind mapping helps them to understand concepts quickly and clearly. It also helps them to share what they've learned with others.

A total of 80% of respondents have expressed that mind mapping helps them to share new ideas with clarity, and 81% of respondents say that it helps them to manage projects more efficiently. Also, 67% of respondents say that mind mapping helps them to discover the root causes of operational bottlenecks.

Mind mapping improves productivity

For business users, the most significant benefit of mind mapping is increased productivity. Survey respondents report that mind mapping increases their productivity by 20% to 30%. Over the eight years that Frey has conducted studies, this resulting stats have remained static.

Nearly 70% of respondents say that mind mapping saves them seven or more hours of work and learning per week. Around 30% express that it saves them three to seven hours per week, and 40% say mind mapping saves them at least one to three hours each week.

Creativity is essential during any stage of life. And mind mapping is the ideal tool for sparking creativity. Respondents to Frey's survey also revealed that mind mapping has also resulted in a 50% increase in their creativity.

Mind mapping practitioners express that the technique helps them sort through their thoughts and make meaningful connections during creative projects. Furthermore, the technique enables users to commit their ideas to paper quickly so that they can record emerging concepts before their creative spark dissipates.

Mind mapping can make you a better business professional

Using mind mapping, you can easily organize a complex business idea into a cohesive concept. By using mind mapping software, you can significantly improve your ability to communicate ideas to organizational stakeholders.

There is no limit to the ways that you can apply mind mapping techniques. For instance, project managers use mind mapping to present ideas to team members with more clarity, and marketers use mind maps to create advertising campaigns and editorial schedules.

How to build a mind map

Learners of all kinds can gain a distinct advantage by using the mind mapping technique in tandem with cognitive learning theory (CLT). Before you start creating your mind map, however, review your information sources quickly. Scan the titles, subtitles, headings and visual representations. This quick scan will help you to focus your attention and better understand complex content.

Once you've discovered the central theme of your mind map, write it as a title in the middle of a piece of paper, and draw a picture that represents that idea. Then, draw a circle or square around the central idea and picture.

Next, you need to develop four to seven primary branches. Your primary branches will represent important topics that describe the central idea.

Make each branch a different color and make all secondary branches the same color as the primary branches. Make sure to limit how many keywords you assign to each branch. If you choose too many keywords for the branches, you'll make it difficult to retain information.

As you develop your mind map, remember that you only have so much space. As a rule of thumb, make each branch the length of the keyword. As you work on the branches, try to keep in mind how much space you'll need to complete the full layout of your mind map.

There's a wide range of free or paid software solutions that can help you to create and work with a mind map. For example, MindMeister is a top mind mapping tool that you can use to develop, visualize and share your ideas. ConceptDraw is a mind mapping tool that caters to business users, and MindNode is another mind mapping tool that comes with a range of advanced functions.

In the business world, it seems like there's something new to learn every day. Mind mapping can take the stress out of continual learning and help you to maintain your overall well-being and mental health.

Today, the business world is a fast-paced digital environment. The speed at which information flows affects the way that people learn. Mind mapping can help you to absorb complex ideas quickly so that you can learn new concepts that enable you to capture fleeting opportunities.
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