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Those images and infographics your company posts on social media, those thermostats turning red and green and sending data about water heaters, and all the telephone calls you receive at your reception are just a few instances of data your company is collecting on a typical day. Imagine how much information only you are generating every day, every hour, every minute and every second!
With 2 Billion active Facebook users and 1.5 Billion on YouTube, as noticed in 2017—a monthly number, growing every year—we are at the brink of data explosion. Thanks to IoT devices, mobile searches, and numerous apps connecting you to people and devices, data never rest, cease, and sleep. In these limitless oceans of data, there is a small fraction relevant to you and your company too. This small segment brings in uncooked information about your employees, products, services, and customers.
However small these statistics are, they are crucial to growth. Your business can thrive better, and users can send more likes when you put these raw numbers and texts to the right use. It is the fundamental reason why data analytics is important for business growth in 2020, and if you are not among 40% of the firms launching some kind of data literacy program, you might falter off the race.
What is Data Analytics?
Data analytics is the process of collecting raw data from various sources and synthesizing them to make sense and produce insights that are usually hidden and unexplored without employing techniques and technologies.
The concept can be as simple as seeing which customers bought your product last month. It can also be as complicated as predicting the future of a product in the making and what are the possible ways to push its sales. So, data analytics can help you peep into the past to examine the impactful events. It can also help you to compute the predictions and possibilities to turn those predictions into reality.
Data collected from various sources—internal databases, social media channels, emails, texts, and calls to name a few—are eclectic. But when these data pass via data analytics tools and methodologies, they generate egalitarian insights that are based on the historical facts. These insights help executives to make decisions confidently or scrap the decisions altogether. Hence data analytics is important for the growth of a business. Let us visit the advantages of data analytics.
What are the Benefits of Data Analytics?
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Marketing and Customer Knowledge
Modern tools in the field of data have changed the paradigm of businesses by leveraging the unstructured contents. And marketing has seen the most impact. By understanding the customers who don’t shy away from talking about brands, products, and companies on social media, data analytics tools can decipher their emotions, feedback, likes, and dislikes. These inputs also help the executives to understand where to improve, what to scrap, and what to produce.
With the metrics collected from all online and offline channels, businesses can design strategies to engage active and dormant customers, attract new prospects through offers, and invite churned customers with better promises. It is the deep learning of data that helps marketers to bombard relevant and personalized ads on social media channels.
Planning Well for Internal Growth
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A business not only runs with products and customers but also need internal assets like employees, operational policies, finances, and infrastructure. When they have the right data to understand future demands, then only can they get themselves prepared for the needs like finances and infrastructure. Predictive Analytics can reveal these demands.
If you already get an idea of the vacancies you need to fill in for a new venture, your HR team would appreciate the assistance they receive. Similarly, based on the past learning programs employees have opted, their aspirations for the long and short terms, and new engagements, it would be easy for the concerned departments to share course suggestions for them.
Similarly, based on the forecasts, internal departments like the travel and for ex teams, finance department, and infrastructure division can gear up and procure timely services.
An Indispensable Technology
Whatever modern technology you deploy in your business, data are the focal point in AI, Automation, Storage, IoT, 5G, and many more. So, when these technologies generate or need data during their functioning, analytics come automatically in the picture. Otherwise, you would lose some inferences hidden deep beneath these data emerging from IoT devices, AI programs, and 5G.
To keep up with the hi-tech initiatives by the government like smart cities and roads, cleantech innovations, and social causes where data play a crucial role, you need data analytics. BI and Analytics assemble and clean data, you are bombarding on society while you consume several shared social resources like water and electricity too.
Efficiency Improvement
A firm’s growth depends on two internal forces: efficient employees and effective processes. To achieve efficiency from both the sources, you need to quantify the performance. And to gain this, data are essential. A step further in collecting facts and numbers about the performance of employees and the processes is to analyze these numbers and derive a plan to improve efficiency. This is when data analytics matters the most to the organizations.
Data analytics not only brings diverse data from multiple sources but also filters out unworthy data and brings to the surface the truth human eyes cannot detect. Moreover, these truths form the past help management to roll out new plans for performance improvement. Not only enhancements but data also bring forth the factors that slump a process.
Leads to Innovation
Market analysis and measuring customer sentiments not only helps to improve customer relationships and product design—as mentioned earlier—but also helps to judge the market demands. These revelations help to innovate and create new products.
Wastage in the manufacturing processes led to the birth of Six Sigma, but there were negligible ways to quantify and dig deep. Imagine the power data analytics could have lent if the concept were there. Similarly, the concept helps in finding the issues and market demands, thereby unveiling the hidden opportunities for new processes, concepts, and innovations.
Cost-Effective
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All the above benefits make together a good reason for why data analytics is important for business growth in 2020 and the coming years. But financial gains always attract executives. And data analytics helps marginalize your budget around both internal and external factors.
Because analytics predicts churns and helps you augment efficiency, it saves a penny or two in every endeavor indirectly. But directly, data analytics aids in detecting frauds too. Fraud detection and timely mitigation or strict policies to check previous scams can help businesses save more than a penny. The concept can also help forecast budget, expenses, and revenue by analyzing financial data and other influential factors.
Conclusion
James Fisher from Qlik has shared his insights on “how data analytics can unleash the hidden potential beneath the layers of data" to drive decisions. These hidden potentials that humans cannot easily or quickly figure out, data analytics can do with the visualizations and dynamic dashboards. Take any modern tool of today like Power BI, Qlik, or Tableau, they enhance your business. They offer an imperative analysis while behind the scenes, they dive into terabytes and sometimes petabytes of data. They can also connect with your websites through Google Analytics.
Logesys has been serving diverse industries by offering analytics solutions with Power BI and Qlik. If you are keen to take your business to new heights, you are in the right place. Please contact us for a customized solution in visualizations and analytics today.