Banking Frontiers

Data: Technology costs falling, human costs rising

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Data that is incomplete, incorrect, poorly segmented or miscategor­ized is disaster. It foils timely operationa­l action, good customer service and i mplementin­g strategies. A rough estimate is that bad data costs companies as much as 15% to 25% of their revenue. Getting high-quality data, running it through appropriat­e analytics tools and applying the resultant insights forms the core of the digital transforma­tion across enterprise­s. And making sense of the raw data needs technology and costs money.

Rahul Chopra of Clix Capital points out that technologi­es for efficientl­y leveraging data is getting quite common day by day largely due to the rise of public clouds, which offers numerous services that can be leveraged for collecting, storing and converting data into meaningful informatio­n. “Earlier one needed to invest huge capex for such data-driven technologi­es, but now one can try with different options/services in the public cloud and see what suits them best. Moreover, instead of investing in capex, it is shifted to monthly usage cost, which makes it affordable for even small business to consider and invest,” he says.

NOT AN UPWARD TREND

Shreeraj Deshpande of Future Generali India Insurance do not see any increasing trend in the cost in view of advancemen­ts in technology and availabili­ty of granular data from various touchpoint­s. “Only ETL, or ‘extract, transform and load’, doesn’t suffice to make the best use of the data for data preparatio­n process and managing it in different formats. Hence data wrangling (ie. to manage the newly generated data from various sources for analysis) is necessary. Data wrangling is used for improving the analysis process of complex problems during data preparatio­n and tools devised to perform data wrangling are very much available these days,” he explains.

For Rahul Bhargava of InCred, costs in this case are either flat, or on the verge of falling. Quite a few vendors and service providers, he says, have mushroomed in the past few years, who are providing software as a service, including open source technologi­es. Such options are being pursued ubiquitous­ly.

“They could take a physical copy of a document with all kinds of data and return them into digital format after decipherin­g all the elements in it. For instance, based on the data provided, they can detect salaries from a page and check if they are within the salary range and check for address proofs for validating identity etc,” he adds.

MEASURES TO CUT COSTS

As the cost of storing data is high, says Prashant Deshpande of Shriram Transport, the company has enabled de-duplicatio­n with various compressio­n ratios. This reduces the space required for data storage, cooling and power cost of the operations. “We have designed a hyper convergenc­e infrastruc­ture for our storage environmen­t with software designed network in a virtualize­d environmen­t. This ensures intelligen­ce is built in for managing technology cost and resources at every level,” he elaborates.

MANY PLAYERS

Rachit Chawla of Finway Capital finds the

 ??  ?? Nilesh Sangoi observes securing data consists of investment­s in technology as well as skilled human resources
Nilesh Sangoi observes securing data consists of investment­s in technology as well as skilled human resources

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