The Basics #5: What Makes Data Valuable?
It’s often said that “data is the new oil.” Like oil, raw data on its own isn’t very useful, its value comes after you refine it into something meaningful. Data becomes valuable when you turn it into insights, decisions, and actions that benefit your organization. But what exactly gives data its value? In this final part of “The Basics” series, let’s break down how to recognize and create value from your data.
Data vs. Insight: Raw Numbers to Meaning
Having a lot of data doesn’t automatically guarantee success. You might have thousands of rows of spreadsheets or a database full of information, but until you analyze and interpret that data, it’s just a collection of numbers and text. The real value lies in the insight you gain from data – understanding something useful (a pattern, a trend, a relationship) that you can act on.
Say you track every click visitors make on your website over a year. That raw data might be huge, but an insight from it could be: your blog pages get three times more visits than your product pages. That finding is valuable because it’s actionable – maybe you’ll put more product info on the blog, or add links from popular blog posts to your product pages. Turning raw numbers into that kind of message is what makes data valuable.
In short, data becomes valuable when it answers important questions or guides your decisions. If it doesn’t, then it’s just clutter.
Key Traits of Valuable Data
Not all data is equally useful. Here are a few traits that make data truly valuable:
- Relevant: It pertains to your key goals or questions. (If you run an education nonprofit, student attendance or test scores are relevant; local weather data is not – unless weather impacts your programs.)
- Accurate: You can trust it. Clean, error-free data yields reliable insights, whereas flawed data can mislead you.
- Timely: It’s current. Recent information is usually more actionable than year-old data when you need to make decisions now.
- Accessible: People can get to it and understand it. A simple report or dashboard that everyone can use makes data far more valuable than a database only an IT specialist can navigate.
Ultimately, valuable data is data that you can do something with. It helps you make a decision, improve a process, or spot an opportunity.
Putting Data to Work
How do you turn raw data into something of value? Start by asking the right questions. Rather than gathering data for its own sake, focus on what you really want to know. What product is most profitable? Why did donations spike last month? Starting with clear questions like these helps you zero in on the data you need and filter out the rest.
Analysis doesn’t have to be complicated. Sometimes calculating a simple average, making a quick chart, or sorting a list is enough to reveal a pattern. The key is to look for anything noteworthy – maybe a clear trend, a big gap between groups, or an unexpected outlier that catches your eye.
A small online retailer we worked with had plenty of data but wasn’t using it effectively. We helped them focus on one goal: increase repeat sales. By analyzing their customer purchase records, we discovered that only 20% of their customers made a second purchase. This insight was eye-opening. In response, they started a loyalty program offering a discount on the second purchase. Within a few months, their repeat purchase rate rose and overall revenue jumped by 15%. Here, the data revealed a weakness (low repeat business) and pointed to a solution – an example of data’s value in action.
This story highlights an important truth: data’s value comes from how you use it. When data is aligned with your business goals, it becomes a powerful asset. On the flip side, data you never look at – no matter how much you’ve collected – has little value, much like an unread book gathering dust on a shelf.
Conclusion: Data for Everyone
At Moonland, our mission is to democratize IT and simplify data for organizations like yours, because data’s value isn’t just for big corporations. Whether you’re a small business or an NGO, the basics remain the same: figure out what information matters, ensure your data is good quality, and use it to make informed decisions.
This series showed that data doesn’t have to be intimidating. It can be a helpful guide for making choices, not just dry numbers. These basics are just the beginning, as you grow more comfortable with data, you’ll find more ways it can fuel your success. Remember, the value of data isn’t in having it, it’s in using it.
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About the Author
Pello Múgica Gonzalez is the cofounder of Moonland, a digital consultancy based in Ghent and Brussels, focused on empowering mission-driven organizations through data, automation, and AI. With hands-on field experience at the Red Cross and a background in data science, Pello understands the unique challenges of the impact sector, from complex stakeholder environments to demanding reporting cycles.
He leads digital transformation initiatives that help NGOs and nonprofits streamline operations, unlock insights, and build long-term resilience through accessible, human-centered technology. In recognition of his work, Pello was named a Digital for Development laureate, honoring his innovative contributions to the humanitarian and development field
Passionate about making technology work for social good, Pello continues to support impact-focused teams in turning fragmented data into actionable strategy, helping them stay agile, transparent, and mission-aligned in a rapidly changing world.
