The parable of “The Blind Males and The Elephant” tells the story of six blind males who come throughout an elephant for the primary time. They every study a unique a part of the elephant. The trunk. The ears. The tusks… You get the gist.

Consequently, every particular person involves a really totally different conclusion about what an elephant is.

They’re all partly proper — but in addition solely flawed.

The ethical of this story is easy. Completely different views and incomplete data can result in various — and sometimes inaccurate — interpretations. It is an outdated story. But it surely’s a fable we should always pay shut consideration to in our trendy world. Particularly when working with information.

Associated: Utilizing Information Analytics Will Rework Your Enterprise. This is How.

Much less will (virtually) at all times be extra

Enterprise leaders worldwide wish to use their information to make higher selections and get extra correct insights into their enterprise.

However typically, companies may have a number of layers of their tech stacks. Some are new. Some are outdated. Some are built-in. Some are completely siloed. Every of those layers captures totally different information. And also you get inaccurate insights when these items aren’t speaking to one another.

Companies have entry to extra information than ever earlier than. However amount would not equal high quality.

For a lot of organizations, the precise high quality of their information is being diluted. You create misaligned incentives by having so many alternative components in your tech stack. One side of your stack might let you know one factor, however then the following half can contradict it. We see this loads in promoting expertise. A myriad of various shopping for platforms, information companions, publishers, analytics instruments, CRM, segmentation instruments and extra. Typically, it turns into so messy over time that it is laborious to get the actionable information you’ll want to create insights, actions, and enterprise influence.

Entry to numerous information units doesn’t equal good information. Taking a look at information units in silos is a straightforward strategy to paint the flawed image, which will increase the chance of poor decision-making.

Information is thrilling, however you want to have the ability to view it in a single place, which is why I believe the ideas of vertical integration needs to be carried out right here.

Vertical pondering

Vertical integration is a method that permits an organization to streamline its operations by taking direct possession of processes. In different phrases, it permits you to management your personal future. In principle, it offers companies larger efficiencies, lowered prices, and extra management of the manufacturing and distribution course of. Tesla is a well-known instance of this mannequin apply.

Tesla carried out vertical integration throughout its enterprise construction — however with a significant give attention to two key elements: battery manufacturing and vitality storage. Tesla knew that batteries had been crucial to EVs – and that success hinged on proudly owning a extremely contested battery provide chain. This enterprise allowed Tesla to leverage its experience in battery expertise and apply it to the vitality storage market, creating synergies and shared assets throughout totally different product traces.

It does the whole lot from designing the automobiles, constructing the tech, and making its personal chips to promoting the automobiles. All the things is in-house, that means provide chain points or manufacturing companions do not sluggish it down. This integration has helped the corporate scale its operations, drive technological developments, and place itself as a sustainable transportation and vitality options chief.

Proudly owning your information can work in the identical manner. However with out the necessity to construct a multi-billion greenback gigafactory in Nevada.

By taking management of your tech stack and possession of your data, you acquire a extra holistic view of what’s taking place with your corporation. And also you additionally insulate your self from points within the outdoors world.

That is invaluable by itself. However this singular view turns into much more highly effective if you issue within the exponential progress of AI and ML applied sciences. Making use of these instruments to a vertically built-in information set can rework a enterprise and unlock beforehand unknowable insights.

Basically in case your information is disparate and never properly built-in, you possibly can by no means get to the “Unknown Unknowns”—the belongings you did not even know to ask about. There are patterns invisible to human eyes. You possibly can solely see these with good information.

Extra insights. Extra effectivity. Extra management. Vertical integration gives companies management of their provide chains. However there are challenges, too. Even if you happen to aren’t constructing enormous factories, you want funding and assist to make the mandatory modifications. And most significantly, you’ll want to make sure that turning into self-reliant does not imply you get tunnel imaginative and prescient and lose sight of developments outdoors your corporation.

Associated: 8 Methods Information Analytics Can Revolutionize Your Enterprise

Information and elephants

When you take a look at totally different information units in isolation, you’ll probably emerge with an incorrect thought of what an elephant — aka your corporation — actually is.

You could be partly proper in locations, however additionally, you will be solely flawed.

Vertical integration permits leaders to see the complete image of their enterprise — from buyer to inventive, hoof to tusk.