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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
1 April 2025

With data intelligence from big data to smart data

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(1716)

Imagine your company sitting on a veritable treasure trove, without even knowing it. Millions of data points flow through your systems every day, yet most of them disappear unused into digital archives. Transforming Big Data into Smart Data using data intelligence opens up entirely new perspectives for strategic decisions. Companies that sleep through this development risk their competitiveness. At the same time, a unique opportunity arises for all those who are willing to rethink their data landscape.

Why raw data volumes alone do not create added value

The mere accumulation of gigantic amounts of data often leads to more confusion than clarity. Decision-makers face the challenge of extracting relevant insights from a confusing jungle of information. It repeatedly becomes apparent that quantity without quality is of little use. For example, a medium-sized logistics company collected telemetry data from its entire fleet of vehicles over many years. Storage costs increased continuously, while the data remained virtually untouched. Only through targeted analysis could patterns in driving behaviour be identified. These findings led to optimised routes and significantly reduced fuel costs [1].

In the manufacturing industry, we experience similar scenarios with impressive regularity. Sensors in production facilities continuously generate measured values for temperature, pressure, and vibration. Without intelligent processing, these signals remain meaningless. A machine manufacturer only realised that specific vibration patterns indicated impending failures after implementing predictive analysis methods. Predictive maintenance significantly reduced unplanned downtime. Furthermore, the planning reliability for customer orders improved noticeably.

The limitations of unstructured data collections are also clearly evident in the healthcare sector. Hospitals collect countless patient data, laboratory values, and treatment histories every day. Linking this information often fails due to technical hurdles and data protection requirements. For this reason, a hospital network launched a pilot project for semantic data preparation. Through this initiative, doctors were able to systematically compare treatment successes for the first time. The insights gained were incorporated into improved therapy protocols and sustainably supported clinical decision-making.

With data intelligence for targeted information retrieval

The key to successful transformation lies in the intelligent processing of existing information resources. Modern algorithms play a central role in pattern recognition and categorisation. However, companies need more than just technical tools. They need a clear strategy that links business goals with data potential. A retail company impressively demonstrated this through the realignment of its customer analysis. Instead of storing all transaction data, the team focused on behaviour-relevant indicators. This focus enabled personalised offers with a measurable impact on the conversion rate [2].

The energy sector also shows remarkable application examples for this approach. Grid operators process consumption data from millions of smart meters. The challenge lies in deriving precise load forecasts from this mass data. A regional energy supplier developed a model for predicting consumption peaks. This model takes into account weather data, public holidays, and historical consumption patterns equally. The improved forecast accuracy optimised energy procurement and noticeably reduced purchasing costs.

Best practice with a KIROI customer

An internationally operating automotive supplier faced the task of fundamentally modernising its quality assurance. The company produced complex assemblies at several locations worldwide and struggled with fluctuating scrap rates. The existing production data comprised millions of data records, which had only been sporadically analysed until then. As part of a transruption coaching project, we supported the company in developing a data intelligence strategy. Together, we first identified the relevant quality parameters and their dependencies. Subsequently, the team implemented an analysis system that detects and reports deviations in real-time. The results far exceeded initial expectations. The scrap rate decreased by a double-digit percentage within a few months. Furthermore, collaboration between the locations improved significantly through standardised data formats. The project highlighted the importance of combining technical expertise with strategic guidance for the sustainable success of such initiatives.

Data intelligence as the basis for informed decisions

Leaders require robust information to act correctly in complex situations. Condensing raw data into meaningful key figures significantly supports this process. A financial service provider used this methodology to optimise its credit risk assessment. Instead of static scoring models, the institution opted for adaptive algorithms with self-learning components. This change enabled a more differentiated assessment of credit applications. At the same time, the processing time for standard cases was significantly reduced.

In the media industry, this approach is fundamentally changing content strategy. Publishers are analysing user behaviour on their digital platforms in ever greater detail. Through systematic evaluation, a specialist publisher identified which topic areas generated particular interest. These findings were incorporated into editorial planning and demonstrably increased reader engagement. Furthermore, the publisher optimised its advertising formats based on actual interaction data. Here, the transformation from Big Data to Smart Data became a competitive advantage.

Insurance companies also benefit considerably from this development. Claims processing traditionally involves many manual verification steps, which are time-consuming. One insurer implemented a system for automated document analysis and claims assessment. This system extracts relevant information from submitted documents and categorises cases automatically. Claims handlers can therefore concentrate on complex cases that require human expertise. The average processing time noticeably reduced, while customer satisfaction increased [3].

Practical Steps for Implementing Intelligent Data Strategies

The path to successful implementation begins with an honest assessment of existing resources. Many companies significantly underestimate the effort involved in data cleansing and standardisation. A pharmaceutical company initially invested considerable resources in consolidating historical research data. This foundational work subsequently enabled the application of modern analytical methods to clinical trials. The insights gained noticeably accelerated the development processes for new active ingredients.

The importance of a well-thought-out data architecture is particularly evident in retail. Omnichannel strategies require the real-time integration of online and offline data sources. A fashion retailer systematically linked its point-of-sale systems with its online shop and customer database. This resulted in complete customer profiles, enabling personalised recommendations. The cross-channel purchase rate increased significantly after implementation. Additionally, inventory planning improved considerably due to more accurate sales forecasts.

Telecommunications providers face similar challenges when it comes to network optimisation. Analysing usage patterns helps with both capacity planning and investment decisions. A mobile network operator used aggregated location data to identify coverage gaps. These findings were incorporated into the prioritisation of network expansion measures. Targeted resource allocation significantly improved network quality in critical areas. At the same time, investment costs fell noticeably as a result of focused measures.

Cultural change as a prerequisite for the success of data intelligence projects

Technical solutions alone do not guarantee sustainable success in data transformation. Employees must understand and actively want to use the new possibilities. An industrial company therefore launched an extensive training programme in parallel with the system introduction. The workshops imparted not only technical knowledge but also analytical thinking. This investment in employee development paid off through higher acceptance. Furthermore, innovative application ideas emerged directly from the specialist departments.

In the public sector, cultural change requires particular sensitivity and perseverance. A city council implemented a citizen service portal with integrated data analysis gradually. Initially, case workers received simple evaluation tools for their daily work. With growing experience, the range of functions was continuously and organically expanded. This careful approach fostered acceptance and noticeably reduced resistance to change. Citizens benefited from faster processing times and improved service quality alike.

Best practice with a KIROI customer

A medium-sized mechanical engineering company was looking for ways to optimise its service processes and develop new business models. The company had an installed base of several thousand machines at customer sites worldwide. The challenge was to systematically collect and analyse the operational data from these machines. As part of our support, we jointly developed a roadmap for the step-by-step digitalisation of the service business. First, we retrofitted selected machines with sensors and connectivity. The data collected was fed into a central platform that automatically detects patterns and anomalies. Within a year, this led to the creation of entirely new service offerings featuring predictive maintenance. Customers greatly appreciated the improved availability of their production facilities. The company generated additional revenue through premium service contracts with guaranteed response times. This project illustrates how transruptions coaching can support holistic transformation.

My KIROI Analysis

Transforming unstructured data into valuable business insights presents companies with multifaceted challenges. My experience from numerous projects shows that the technical aspect is often overemphasised. The actual success factors are frequently rooted in strategic alignment and organisational integration. Companies that start with clear business questions achieve more measurable results than those that introduce technology for its own sake. Investing in data quality and employee skills pays off in the long term. At the same time, I observe a growing sensitivity to ethical aspects of data usage, which I expressly welcome.

For the coming months, I expect a further acceleration of these developments across all industries. Artificial intelligence will significantly enhance analytical capabilities and open up new fields of application. At the same time, the demands for transparency and traceability of algorithmic decisions are continuously increasing. Companies should actively shape this balance between innovation and responsibility. Transruptions coaching can provide valuable impetus and support the transformation process in a structured manner. The examples presented here illustrate that the path is rewarding, even if it requires perseverance. The consistent alignment of all activities with actual business goals and customer needs remains crucial.

Further links from the text above:

[1] Gartner Insights on Data Analytics

[2] McKinsey Digital Insights

[3] Bitkom Digital Transformation

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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