Types of Data

types of data

The types of data that businesses collect can be broken down into five broad categories:

1. business process data
2. physical world observations
3. biological data
4. public data
5. personal data

Business Process Data

In order to remain competitive businesses must find ways to increase efficiency while maintaining quality standards for their products, goods and services. In order to continuously improve their operations, businesses collect data regarding their business processes. This data can range from collecting data on the number of days it takes their customers to pay invoices to the time it takes to assemble and package a product. In order to collect this type of data, many businesses employ enterprise resource planning systems. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data.

Another source of process data is point of sale (POS) systems. We are all familiar with these – they are the systems that scan the barcodes on our purchases when we check out at the grocery store. When a cashier scans the barcode on an item that scan collects data that may be used in inventory management, loyalty programs, supplier records, bookkeeping, issuing of purchase orders, quotations and stock transfers, sales reporting and in some cases networking to distribution centers. The more data a business has about its processes the more likely it will find opportunities to improve or enhance those processes.

Physical World Observations

Technology has made it possible for business to capture real-time data about the physical world. This data is collected by the use of devices such as radio frequency identification (RFID), wireless remote cameras, GPS, sensor technology and wireless access points. By inserting computer chips into almost any object, companies are able to track the movements of that item and in some cases control the object.

Wireless Technology

One of the early adopters of wireless technology was the On-Star system installed in millions of U.S. automobiles. Through the use of a combination of radio frequency identification (RFID), GPS, and satellites, car owners who inadvertently locked their keys in the car can make one call to On-Star and the doors to their vehicle would be unlocked.

In another application of RFID technology, Delta Airlines sends passengers real-time information about the location of their checked baggage.  In 2016 Delta began sending fliers who check bags mobile notifications as bags are loaded onto and off of airplanes and when they arrive at carousels for pickup. By embedding RFID chips in each luggage tag, Delta has achieved an astounding 99.9% tracking success rate, according to the company. “In the same way that customers want information at their fingertips about flight changes, we know our customers want clear visibility to their checked bags,” says Tim Mapes, Delta’s chief marketing officer.^[1].

Biological Data

If you have a newer smartphone, then you may be able to unlock your phone by simply looking at the screen. This is made possible by facial recognition software. Unlocking your device with your fingerprint is another example of biological data available to businesses. Although things like voice and face recognition, retinal scans and biometric signatures are currently used primarily for security purposes, it may be possible in the future for this type of data to allow for product and service customization.

Public Data

Businesses have an almost endless source of data available to them free from public sources. Whenever you log onto the Internet, use instant messaging, or send emails, an electronic footprint is left behind. For now this data is considered to be “public” and businesses collect, share, and even sell this type of data every day. This has become a very controversial topic in the past several years and legislation by the European Union regarding this type of data may be the first step in limiting the collection and use of this type of public data.

Personal Data

As we use technology we provide a wealth of personal data that businesses can use to reveal much about our personal preferences, habits, pastimes, likes and dislikes. For example, companies like Google and Meta use information people provide — such as their age, gender and interests — to target ads to a specific audience. Advertisers tell Instagram which demographics they want to reach and then the social media giant places the ads on accounts that align with those characteristics. Much like the controversy surrounding publicly available data, what rights an individual has to his or her data is currently being debated globally.

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