Creating Value from Unstructured Data: 3 Things You Need

The good news is that every company across every industry has a wealth of information available to them, and unstructured data is an often untapped goldmine of insight. Most businesses already have data scientists pouring over spreadsheets and databases to uncover valuable information, but unstructured data sometimes flies under the radar. Unstructured data is raw, unorganized information, and can come in the form of a text, image, video or audio clip. For example, something as innocuous as online customer reviews can be filtered and analyzed for valuable, actionable business insights

Unstructured data holds immense potential for businesses seeking crucial new insights. To unlock the full power of unstructured data, organizations must navigate three key challenges: data quality, data privacy, and integration with existing systems.

Data Quality

Unstructured data is characterized by its noisiness and lack of organization. Mining for the gold within it can be a demanding and complex process that involves bringing in a data expert as well as the appropriate analytical tools to sift through the vast amounts of data generated. It demands both time and expertise, making it a resource-intensive process, but one ultimately worth the while.

Data quality is the first challenge of unlocking insights from unstructured data. To ensure the data collected is useful, companies need to invest in data cleaning and processing tools like AI. As more organizations use AI, machine learning algorithms and natural language processing tools become more effective and can be used to turn the raw data into usable insights. That being said, AI isn’t a “set it and forget it” solution. Even after investing in these tools, companies should continue to conduct regular quality checks on their data pipelines to ensure the information remains accurate and up-to-date.

Data Privacy

Depending on the source, unstructured data can contain highly sensitive information, including personally identifiable information, which can cause complications with adhering to privacy and security regulations. As companies dive into different wells of unstructured data, they must be acutely aware of data privacy concerns and any application data protection laws for their industry or state.

To minimize risk and ensure compliance, organizations should implement anonymization and encryption practices when extracting data. By anonymizing any identifiables and encrypting sensitive data, businesses can land in the sweet spot between obtaining information and protecting privacy. In addition, establishing clear data governance policies and providing ongoing training to employees on best practices for data privacy are two crucial steps to navigating the complex regulatory landscape of data privacy.

Integration with Existing Systems

Integrating unstructured data into existing systems can be challenging, even after the data is cleaned and organized. With different sources including data warehouses and data lakes, companies face challenges related to data flows, update timing, and data matching.

To effectively integrate unstructured data into its processes and be able to use it for strategic decision-making, businesses should adopt a holistic approach to incorporating any new information. Step one of the process is developing a comprehensive data strategy that aligns with the organizational goals and existing systems. Regardless of what data is collected, all of it would be rendered useless without a proper plan for integrating and using the data. Once the plan is in place, it’s important to monitor the workflow to ensure compatibility and facilitate a seamless flow of unstructured data into existing systems.

Unlocking value from unstructured data is, in turn, invaluable, but requires a purposeful and strategic approach from the get-go to smooth out any bumps in the road. By investing in the right tools, adhering to privacy regulations, and adopting a holistic integration strategy, organizations can transform unstructured data from various sources into new insights for business decision-making. The path may be challenging, but the rewards of unstructured data can make all the difference for companies looking to stand out against the competition.