What is Data Sourcing and How it Works Exactly?

A data source is exactly what it sounds like — a place where data comes from. This can be a computer file, a database, or a web service. Data sourcing is crucial for my business. It helps me gather the necessary information to make informed decisions. By tapping into different data sources, I can access the valuable assets I need. Whether I’m looking at sales numbers, customer feedback, or market trends, having the right data makes a big difference.

In short, data sourcing enables me to gather the information that drives my business forward. It’s an essential part of staying competitive and making smart choices.

What is Data Sourcing?

Data sourcing is how companies collect and combine data from many sources, both inside and outside the business. This process builds the company’s data infrastructure. This infrastructure is used to manage daily tasks and reach business goals.

In today’s data-driven markets, data sourcing is essential. It supports daily operations and helps achieve various objectives. Without data sourcing, handling daily workflows and meeting business targets would be challenging.

Data Sources

Data sources can have different meanings depending on the context. They can be broad or specific, such as primary and secondary sources or file and machine data sources. In this article, we will focus on primary and secondary data sources.

Primary Data

Primary data is created by the company itself. It is collected through questionnaires, surveys, interviews, and other methods. Gathering primary data helps address specific problems and provides detailed answers.

Secondary Data

Secondary data is created by others and can be used for specific purposes. It comes from various sources, like government institutions, websites, books, and articles.

This data can be classified into internal and external categories. Internal data comes from within the company, while external data comes from outside sources.

Internal Data

Internal secondary data comes from the company’s historical records. It is data that has already been collected. This data is usually stored in the CRM platform. It includes customer data, transaction records, and other customer information.

External Data

External data, also known as public web data, is information available to the public that isn’t found in your company’s CRM platform. It is usually collected manually or through data providers.

While collecting data yourself might seem cheaper, it can be very time-consuming and ultimately cost-ineffective. Manually prepared data can also lead to poor data quality, causing additional problems.

Using a reliable data provider like Bright Data or Oxylabs can solve these issues. They provide fresh and relevant data quickly. This way, you don’t have to worry about data quality. You can focus on using the data to improve efficiency and achieve business goals.

Prioritizing Data Quality

When choosing a data provider, data quality must be a top priority. Quality is crucial for acquiring and using data effectively.

Poor data quality can cost millions, and many companies struggle to ensure their data is optimal. Therefore, it’s important to focus on quality when sourcing data. Look at metrics like the age, consistency, and validity of the data before making decisions based on it.

Ensuring high-quality data is not always easy, but there are steps you can take. Ask data suppliers about their data gathering methods and the age of their data. After consulting multiple providers, choose one that offers fresh, relevant, and high-quality data. This will help you make better business decisions.

Relying on Data Providers

When sourcing data, choosing the right provider is crucial. It’s important to look at the accessibility options they offer. Many providers allow data access through APIs. It’s advisable to check the filtering solutions they offer.

The best providers also offer data in convenient formats. Look for providers that offer different data types from multiple sources.

For example, Bright Data, Oxylabs, and others, provide hundreds of API solutions. If you want to learn more, read our article about the best web scraping tools.

Prioritizing Data Quality

Data quality is crucial when choosing a provider. Quality is key to fully utilizing data. Poor data quality can be very costly, and many companies struggle to ensure their data is optimal.

When sourcing data, prioritize quality. Look at metrics like data age, consistency, and validity. Ensuring high-quality data isn’t always easy, but there are steps you can take. Ask data suppliers about their data gathering methods and the age of their data. After trying multiple providers, choose the one with the highest quality data. This will help improve decision-making and efficiency.

Sourcing Data in the Age of Information

In today’s connected world, the internet and numerous devices share and store vast amounts of information. Remarkably, 90% of the world’s data was created between 2016 and 2018.

Data sourcing brings many benefits to businesses. Big data analytics helps measure both internal and external environments. The insights from data analysis provide a competitive edge and enable bold business decisions.

Data sourcing is crucial for obtaining the right information under the correct conditions. Different companies have various reasons for sourcing data, such as portfolio management, lead generation, and crafting marketing and management strategies.

This process is especially vital for B2B marketing and sales. In 2021, B2B marketers focused on database acquisition and data quality, with the percentage lacking strategies dropping from 50% to 28% in a year. The value of effective data sourcing in B2B marketing is clear.

For optimal results, businesses should follow best practices in data sourcing. Given its importance, a wealth of knowledge on effective data sourcing practices is available.

Data Sourcing Challenges and Concerns

Quality Problems

Uneven quality is a common challenge in data sourcing. This can be addressed with the right methods and ongoing quality control efforts.

Manually collected data is prone to errors, inconsistencies, and duplication. A single mistake can cause your data to be inaccurate. Data quality issues are serious and should be avoided.

If possible, always buy data from professional sources. Low-quality data can end up costing more than investing in a reliable data vendor.

Legal challenges

Managing data involves navigating various legal rules. As businesses become more global, international markets are more accessible. Digital data crosses borders easily, but data regulations do not.

Data governance lacks a universal standard. Guidelines and regulations vary by country and region. This mismatch creates challenges for businesses operating internationally.

Security challenges

Protecting sensitive information is crucial. Advanced security measures are necessary to prevent unauthorized access and breaches. Implementing these measures ensures that sensitive data remains secure and protected from potential threats.

Final Words

Data sourcing used to be the domain of programmers and data scientists. Now, it’s essential for most entrepreneurs. It enhances business intelligence and decision-making. Plus, it helps in creating data warehousing projects for both everyday decisions and long-term strategies.

When it comes to data, the key factors are quality, accessibility, and diversity. It’s crucial to choose the right provider to maximize the value of your data. As an expert, I emphasize that good data sourcing can make a significant difference in your business success.