Data is the new oil

By Phylip Morgan, chief revenue officer at Pax8 EMEA.

In the ever-evolving landscape of the digital age, one phrase has emerged as the cornerstone of modern society; “data is the new oil.” This is particularly important within the IT Channel ecosystem as data enables partners to foster new relationships and unlock efficiencies, driving growth for businesses by leveraging information to make smarter decisions, faster. Similar to how oil fuelled the Industrial Revolution, data advances society into a new era of innovation and performance.

For channel partners, data isn’t simply a resource; it’s the foundation that drives growth, efficiency and an advantage in today’s increasingly competitive landscape. From SMBs to multinational organisations, every decision, strategy and interaction is becoming increasingly elevated by data. To succeed in the modern landscape and drive meaningful change, channel businesses must learn how to get the most out of data.

Increasing Access to Data

 The availability of data today is increasing rapidly, as more aspects of our lives move online. Statista forecasts that by 2025, the total volume of data created and consumed globally will reach 181 zettabytes, an increase of approximately 23% from the 2024 predictions of 147 zettabytes. This highlights the immense scope of data in the modern world.

Driven by the proliferation of technologies and the interconnectedness of society, this data presents enormous opportunities for businesses. Every click, swipe, and transaction generates a trail of valuable information, which can be used to gain data-driven insights that fuel change.

As access to data continues to grow, the role of artificial intelligence (AI) becomes increasingly paramount in extracting meaningful insights and driving actionable outcomes. Both work in tandem, with greater volumes of data resulting in a larger reference set for the AI to work from.

Introducing Predictive Analytics

 An emerging subject area in AI and data has been the rising prominence of predictive analytics which is the use of data to predict future trends and events. It uses historical data to forecast potential scenarios to help drive strategic decisions that maximise productivity, satisfaction and profitability.

Predictive analytics empowers channel partners to move beyond reactive decision-making to a proactive perspective, enabling them to forecast demand, optimise workflows, and allocate resources more effectively. By identifying patterns within large datasets, predictive models can harness data to provide invaluable insights into future market conditions, allowing channel partners to make informed decisions and adjust operations where needed with increased speed and accuracy.

A Continuous Evolution

Despite the rapid technological advancements in AI and data, the journey towards predictive analytics is not a one-time endeavour, but rather a continuous process of learning and adaptation. As organisations accumulate more data and refine their analytical models, the accuracy and reliability of predictive insights improve over time, allowing channel businesses to become more efficient.

This iterative approach to data-driven decision-making fosters a culture of continuous improvement, where channel partners are constantly evolving their strategies and refining their operations based on real-time insights and feedback.

Customer Segmentation, Targeting and Retention

In an ever-developing digital world, data is becoming increasingly valuable for businesses delving into precise details in defining their target audience and prospective clients for their products and services.

This understanding of their customer base allows partners to craft specific marketing campaigns that resonate with segments of their target audience, addressing their unique needs and pain points. Through personalised outreach and messages, channel businesses can build authentic relationships with customers, forging a highly prosperous pathway for future business interactions.

The importance of relationships and long-running networks is vital in the IT channel, and many businesses have seen significant benefits in cultivating a strong community around them. By using data to personalise messaging, partners can seamlessly integrate themselves into this community, a task that will benefit them greatly as the channel continues to evolve.

Securing Personal Data

As data is becoming increasingly accessible in this technology-embedded world, the secure storage, processing and disposal of personal data is vital. In recent years, there has been a sharp increase in data protection laws, designed to reinforce privacy, increase threat visibility and maximise the safety of personal data.

While data is a highly valuable resource in the modern world, it doesn’t come without its challenges. As more devices become integrated into the digital environment, it creates a larger pool of potential threats. Combined with a continuing increase in the collection, storage and processing of data, there is a growing need for strong cyber security procedures throughout businesses.

To minimise rising threats, MSPs should incorporate internal controls such as multi-factor authentication (MFA) and password management to add layers of protection and keep information secure for all involved parties. While data is becoming more readily available, it should only be available to those authorised to access it.

Embracing a Data-Driven Future

Looking ahead, the future of data within the IT Channel holds close to limitless potential. As technology continues to evolve, and with it a continued advancement of how data is used, channel partners will need to embrace innovation and cultivate a mindset where the value of data-driven solutions is not understated.

While personal data is used to augment, automate and streamline services, businesses must ensure that all sensitive data is stored and used appropriately, abiding by all relevant guidance and regulations on the subject. Data is the new oil, and when used correctly, is the key to a highly successful future.