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KIROI - Artificial Intelligence Return on Invest
The AI strategy for decision-makers and managers

Business excellence for decision-makers & managers by and with Sanjay Sauldie

KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

Start » With data intelligence from big data to smart data
7 June 2025

With data intelligence from big data to smart data

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(1150)

Imagine your company sits on a gigantic treasure trove of data, yet no one knows how to tap into it. This is precisely where the transformation that is revolutionising organisations worldwide comes into play. Moving from Big Data to Smart Data with data intelligence means nothing less than the difference between digital chaos and strategic clarity. While many companies are still drowning in data floods, others have long recognised that the sheer volume of information remains worthless without intelligent processing. This realisation fundamentally changes how decisions are made. It also changes how customer relationships are shaped and business models are developed. The following sections will show you, in a practical way, how this transformation process succeeds. You will learn what concrete steps are necessary.

The Path from Data Deluge to Data Intelligence

Businesses today are collecting more information than ever before in history. Sensors, customer interactions, and digital touchpoints continuously generate new data points. However, this raw data is like unrefined gold in a riverbed. Real added value only emerges through intelligent processing. In retail, for example, every till transaction generates valuable information about purchasing behaviour. However, this data remains useless if it is not systematically analysed.

A medium-sized fashion company in the retail sector faced exactly this challenge. The existing systems collected millions of transaction data points daily. No one could derive usable insights from them. The introduction of intelligent analysis tools fundamentally changed the situation. Suddenly, those responsible recognised patterns in customer behaviour. They identified seasonal trends early on. They optimised inventory management based on well-founded forecasts.

Similar developments are evident in the financial sector. Banks and insurance companies possess enormous historical data holdings. The challenge lies in intelligently linking this information. One insurance company employed modern analytical methods for fraud detection. The systems identified suspicious patterns within seconds. Previously, such checks took several weeks. The economic benefit of this transformation was significant.

The logistics sector is also benefiting massively from this shift. Transport routes can be optimised if real-time data is intelligently evaluated, noticeably shortening delivery times. At the same time, fuel costs and environmental impact are reduced. One logistics company was able to make its route planning fifteen per cent more efficient through data-driven optimisation.

Best practice with a KIROI customer

An internationally operating mechanical engineering group approached us with a complex challenge. While existing production data was being collected, it wasn't being systematically utilised. Different sites worked with varying systems and formats, making a comprehensive analysis practically impossible. As part of our transruption coaching, we jointly developed a data strategy that harmonised all sources. First, we identified the most relevant key figures for production control. Subsequently, we implemented standardised data capture processes at all sites. The insights gained enabled predictive maintenance of machinery. Downtime was reduced by approximately twenty percent within six months. Employees have since reported significantly fewer unplanned production stoppages. Quality control also benefited from the improved data basis. Defective batches are now identified and sorted out early. The return on investment considerably exceeded original expectations.

With Data Intelligence from Big Data to Smart Data in Practice

Transforming unstructured raw data into actionable insights requires a systematic approach. Firstly, companies must understand what data they actually possess. Many organisations significantly underestimate the diversity of their existing information sources. Customer relationship systems, enterprise resource planning solutions, and social media channels continuously provide valuable insights.

The potential is particularly evident in healthcare. Hospitals generate enormous amounts of patient data daily. Laboratory findings, imaging procedures, and treatment documentation contain valuable medical information. Intelligently linking this data can accelerate diagnoses. It can also improve treatment outcomes and deploy resources more efficiently.

A group of clinics implemented data-driven bed management. The systems predicted discharge times based on historical patterns. This noticeably improved the utilisation of existing capacity. Waiting times for planned procedures were reduced. At the same time, patient satisfaction measurably increased.

The energy sector uses data-driven decision systems for grid stability. Smart grids require real-time analysis of large volumes of data. Electricity consumption forecasts enable more efficient load distribution. Renewable energy sources can be better integrated into the overall system. One energy provider significantly reduced its balancing energy costs through intelligent forecasting models.

Farming also benefits from modern analysis methods. Precision farming uses sensor data to optimise crop yields. Irrigation systems automatically respond to soil moisture and weather data. Fertiliser use can be controlled with pinpoint accuracy. One farm increased its yield by twelve percent through data-driven management.

Cultural change as a success factor

Technology alone is not enough for a successful transformation. People must understand and embrace new possibilities. A data-driven organisational culture doesn't happen overnight. It requires continuous investment in training and communication. Leaders play a crucial role in the process as exemplars.

In the media sector, we are experiencing this cultural shift particularly keenly. Editorial teams are increasingly using data analysis for topic planning and optimising reach. Journalists are learning to supplement their gut instincts with data-driven insights. A major publishing house introduced data-driven content recommendations. As a result, the time readers spent on the site increased significantly.

The telecommunications industry is employing intelligent analytics for customer retention. Churn prediction identifies customers at risk of leaving early on. Targeted measures can then strengthen customer loyalty. A mobile provider significantly reduced its churn rate by proactively engaging at-risk customers.

The public sector is also discovering the benefits of data-driven decision-making. Cities are using traffic data to optimise traffic light phasing. Waste disposal is becoming more efficient through sensor-based fill-level measurements. A municipal utility company reduced its operating costs by eighteen percent through intelligent route planning.

Best practice with a KIROI customer

A medium-sized trading company sought support in digitalising its sales processes, as existing customer data was fragmented across various systems and did not provide a unified view of the customer. As part of the transruption coaching support, we first identified all relevant data sources and their potential for integration. Together, we developed a Customer Data Platform that integrated all touchpoints and mapped a complete customer history. This provided sales staff with valuable insights into their customers' purchasing habits and preferences. Personalised offers could now be created based on well-founded analyses, which increased the conversion rate by approximately twenty-five percent in the first months after implementation. Customer satisfaction also improved measurably, as inquiries could be answered more quickly and accurately. Particularly pleasing was the positive feedback from employees, who found the new tools to be a genuine work simplification and actively contributed to the system's further development.

Data intelligence as a strategic competitive advantage

Companies that use their data intelligently gain sustainable advantages. They react faster to market changes. They understand their customers better. They continuously optimise their internal processes. The gap between market leaders and laggards is constantly widening.

In the automotive sector, data-driven development processes are driving innovation. Connected cars generate valuable usage data. This information is fed into the development of new models. One car manufacturer used driving data to optimise its assistance systems. Customer satisfaction with the improved functions increased measurably.

The pharmaceutical industry is accelerating research processes through intelligent data analysis. Clinical trials can be designed and evaluated more efficiently. Patterns of side effects are recognised more quickly. One pharmaceutical company reduced its development times by several months through data-driven study designs.

The construction industry is also benefiting from the intelligent use of its data. Building Information Modelling integrates planning and construction data into digital twins. Errors are identified and corrected early on. One construction company significantly reduced its rework costs through improved planning processes.

Shaping sustainability from Big Data to Smart Data with Data Intelligence

The transformation into a data-driven company requires long-term commitment. Quick wins are possible, but the complete change takes time. Organisations must modernise their infrastructure. They must build competencies and adapt processes.

The tourism industry provides a prime example of how sustainable changes can be achieved. Travel providers are using booking data to optimise their offerings. Personalised recommendations increase customer satisfaction. One tour operator significantly improved its repeat booking rate through data-driven personalisation.

The education sector is also discovering the benefits of intelligent data usage. Learning platforms are adapting to individual needs. Learning outcomes can be better measured and promoted. One educational institution noticeably increased its graduation rates through adaptive learning systems.

The chemical industry is optimising production processes through continuous data analysis. Quality fluctuations are detected early on. Resource utilisation can be controlled more precisely. A chemical company reduced its energy consumption by ten percent through process-optimised control [1].

My KIROI Analysis

Accompanying numerous transformation projects has shown me that success depends less on the technology used and more on the willingness to change at all organisational levels. Companies that want to move from Big Data to Smart Data with data intelligence first need a clear vision of what they want to achieve. Without defined goals, projects often get lost in technical details and deliver no measurable business value. The most successful transformations begin with concrete use cases that offer immediate benefits to the core business.

I find the development in sectors traditionally considered less digital particularly impressive. Mechanical engineering, agriculture, and the construction sector have made enormous progress and now use data-driven decision-making systems more readily than many supposedly digital companies. This observation shows that transformation is fundamentally possible in every sector if those responsible are willing to question established ways of thinking and break new ground.

At the same time, I observe that many organisations are overwhelmed by the sheer number of technical possibilities and providers. External support can offer valuable orientation and help find the individually suitable path. Transruption coaching support starts exactly at this point and provides impetus for sustainable transformation. Clients often report that it was only through this structured approach that existing potentials became visible and could be leveraged [2].

Further links from the text above:

[1] Bitkom – Big Data and Analytics

[2] McKinsey – The Data-Driven Enterprise

For more information and if you have any questions, please contact Contact us or read more blog posts on the topic Artificial intelligence here.

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