Businesses analytics are a modern day necessity for enterprises seeking a competitive edge in dynamic market environments. Discover the implications of business analytics in reforming the modern business landscape.
Digital transformation has been the most prominent buzzword in the world of technology and business in recent times. Over the course of the last decade, business transformation fuelled by data initiatives has encouraged many enterprise leaders to re-imagine business models, customer experiences and operations. What has exactly helped businesses in achieving success in digital transformation initiatives? Enterprises have successfully adopted the value of data and analytics to optimize their digital transformation initiatives.
How? The following post helps you find the answer by reflecting on the significance of data analytics in business. You need to know how business analytics play a crucial role in changing the way we work.
How Does Data Matter for Modern Organizations?
Data analytics, the process of deriving actionable and relevant insights from raw data, has been revising many conventional notions and precedents in business. In the existing marketplace,big data is a powerful tool for every business. Many organizations create massive volumes of data, thereby drawing the focus towards using the data in the best way possible.
As a matter of fact, a recent study has revealed how companies all over the world use data for different value advantages.
- Almost 60% of companies have reported data analytics as a vital tool for improving process and cost efficiency.
- Around 52% of companies have been using data analytics for monitoring and improving financial performance.
- On top of it, almost 57% of businesses capitalize on data analytics for driving strategy improvements and change initiatives.
- Furthermore, almost 71% of global enterprises anticipate a possible acceleration in their analytics investments over the course of the next three years.
Considering the importance of business data analytics, as perceived by companies worldwide, it is reasonable to discover how it changes the way businesses work. Let us find out the basic value propositions of data analytics for businesses.
What is the Impact of Data Analytics on Businesses?
If you want to understand how big data and analytics transform the way we work, then you must identify how analytics affects businesses. What are the general outcomes of implementing data analytics for businesses? Data analytics basically focuses on transforming a business’s data into legible information that it can use. For example, data analytics can help an ice-cream store owner find the time of the day when traffic in the store is highest. How does the information help in decision making? The ice-cream store owner can determine the working schedules of store employees based on when the store can expect more customers.
If you look closely, the use of analytics on big data for all types of enterprises can lead to three value advantages. You have the advantage of strategic planning alongside the delivery of tactical value and improved competitive advantage. How does data analytics offer these valuable benefits to businesses? You can find the answer by diving deeper into how analytics work for businesses.
Tailoring Customer Experiences
One of the foremost highlights in answers for “what is data analytics and its application in businesses” focuses on personalization. Data analytics is obviously a crucial requirement for all enterprises which have to face competitive market environments. With the help of data analytics, an organization could gain an in-depth understanding of consumer behavior and what they like about the organization’s products and services. As a result, businesses have to tailor customer-centric business models.
For example, an ecommerce company can use business data analytics to identify the visitors who are most likely to stay longer. In addition, the company can also identify frequent visitors alongside identifying the reasons for their return. The answers to such questions can develop a strong foundation for implementing new strategies to ensure success. Know more about the benefits of data analytics with reliable data analytics solutions at Visvero right now.
- Identifying Opportunities
The impact of data analytics, often associated with improvements in efficiency, also extends to the identification of new business opportunities. You may lose valuable information in the humongous sea of data available today. For example, an untapped customer segment might have been sitting right in front of you for a long time. What if you recognize the untapped customer segment before your competitors? In addition, the applications of big data analytics in healthcare and other sectors have been crucial to the identification of new avenues for improving workforce productivity.
Intelligence-based opportunities for growth are more likely to stand the test of time. With the help of computer-based data analytics models, businesses could identify changes in customer preferences. Proactive identification of the key areas of concern for a business can pave the best possible path for future growth. Interestingly, data analytics can also serve viable opportunities for optimizing human resource management in modern organizations. For example, the benefits of big data analytics can include the use of AI and machine learning for hiring processes. In addition, data analytics could also transform workforce management by enabling informed decision making for promotions, professional development, employee performance assessment and employee engagement.
- Improvements in Internal Processes
The applications of business analytics can not only help to understand customers but also an organization. Business owners could use data analytics to obtain a comprehensive view of internal processes in their organization. As a result, data analytics could work as a vital tool for identifying any internal anomalies within the workforce. A professional data analyst could use the existing data in an organization to find answers to many crucial questions. Data analytics can help in identifying the cause of a problem, the reasons for the problem and future predictions. In addition, professional analytics professionals can also offer viable recommendations for future courses of action. The use of data mining and analysis helps in discovering answers to these aspects and implementing relevant measures.
The impact of data analytics in healthcare industry and any other sector depend on certain common themes. Data analytics encourages personalization alongside better observation of patterns in internal processes and risks. In simple words, data analytics delivers a formidable impact on businesses with the ability to see everything that goes inside a business. While enterprises have successfully used data analytics to transform the way they operate, many people have doubts regarding the feasibility of data science and analytics in real world applications. However, an outline of the different real world examples of the use of analytics in businesses can offer some credible answers. Explore the practical value of data analytics with a competent data analytics solution provider like Visvero right now.
What are the Real World Examples of Data Analytics?
The wide-ranging applications of big data analytics in healthcare and other industries offer more objective approaches for drawing business insights from data. With the arrival of data analytics, companies can explore many value improvements in their external and internal processes. To understand how data analytics reshapes the way businesses work, you need an outline of real world examples like the following.
Amazon is one of the common examples you come across in discussions about data analytics and its use cases. The global online retail giant utilizes big data effectively for improving customer retention. Amazon utilizes customer data for offering a personalized experience, such as product recommendations based on a customer’s purchase history. On top of it, you must have noticed that if you purchase many things from Amazon, you are less likely to leave the platform.
Another top brand using big data and analytics to its advantage is Starbucks. The favorite coffee shop of many customers worldwide, Starbucks, has successfully leveraged data analytics for improving risk management. Starbucks employs data analytics for reviewing customer preferences, location data, demographic data and traffic intensity at a specific location. With the help of these data points at a concerning location, Starbucks can determine the chances of its success. As a result, the brand can open up multiple stores close to each other where the possibilities for profit are higher, and risk is minimal. Learn more about using data analytics for risk assessment with trustworthy data analytics solutions at Visvero now.
The famous British fashion house, Burberry, is also another top example of companies using efficient analytics and data management to their advantage. Burberry has used data analytics for the innovative use case of product development. The brand focuses more on identifying the needs of customers on an individual level to recognize the products they want. In addition, Burberry store employees could also review the online purchase history and preferences of customers. As a result, they can offer recommendations of matching accessories for customers.
Netflix has leveraged data and analytics for the creation of targeted marketing campaigns. The online streaming giant collects data regarding the watching habits of customers and their search history. Subsequently, it uses the data for offering targeted advertisements. It is definitely, an entertaining example of the way data analytics reshape the way businesses work, isn’t it?
The overview of the impact of data analytics on the way businesses work shows how analytics will become an integral part of the modern business environment. In addition, the real world examples of data analytics for shaping new business operations strengthen the perception of credibility with data analytics. Get in touch with credible data analytics solution providers like Visvero and discover value in digital transformation consulting services right now.