Data! Just a four-lettered word which carries a large volume of information. An enormous amount of data is what we are surrounded by. Our work life is all oriented around the data that comes in our hand and the one we deliver as results. But in this 21st Century, when the time has come to accept the digital corporate world, it has become more hard to handle these data and how to create value out of it…
The concept of data has been around for years now and it’s no wonder that with the rise of Business and technology world, it has become indispensable. The use of the word “Data” has been revolutionized overtime, with Data Analytics becoming a whole new integral component of today’s corporate industry. It came in as a rescue to gaining insights that could help businesses in making strategic decisions.
Across industries, data holds such a vast space and prominence which created a need for professionals to be hired who knew how to handle the data and analyze it for the value addition of the companies.
A recent study by Micro Strategy says that the companies globally are using data and analytics in 3 ways:
- Enhance processes and cost efficiencies (60%)
- Strategy and Change (57%)
- Analyzing and improving financial performance (52%)
Now before delving into the benefits, let us understand the term “Data Analytics”.
So, What is Data Analytics?
In layman terms, it is the science of analyzing raw data to extract important conclusions about that information. It examines a large amounts of data to uncover hidden patterns, correlations and other valuables insights.
We have three divisions of Data Analytics, namely:
- Descriptive: interpretation of historical data into identity patterns
- Predictive: use of statistics to forecast future outcomes
- Prescriptive: application of testing and techniques for determining which outcome will yield the best result
Employment of these methods totally depend on the business requirement at hand. This field offers immense potential in relation to Data Science perspective, Business perspective, Real-time Usability and Job Market. In this blog, we will discuss about the Business Perspective to explain why data analytics is so important today?
- Delivery of More Informed Decision Making
It is a fact that Data Analytics serves a valuable resource when approaching an important business decision. Companies can find new insights and opportunities to run their commerce efficiently and profitably.
In fact, the famous Uber, a ride-sharing company developed a Customer Obsession Ticket Assistant (COTA) in 2018 that used machine learning and natural language processing to improve the customer-agent communication channel by its speed and accuracy of responding time.
The speed of Hadoop (big-data technology) and in-memory analytics, along with unique feature of mapping data on clusters, organizations are able to analyze information at a faster pace and at-times, immediately. This streamlined the process of approach for customers and agents, thus saving millions of dollars.
Likewise, there isn’t only one technology that enables informed decision making, but several types of technologies come together to help us get most value from our information such as data mining, data management, text mining, machine learning, etc.
- Revenue Generation
Informed Decisions helped the companies to operate on specific data requirement of the business, hence saving time and approaching the right target which brought significant financial returns.
A study by BARC reflects the trend, reporting that organizations were able to quantify their gains from analyzing big data by an average 8% increase in revenues and a 10% reduction in costs.
Therefore, data analytics is a robust tool that is transforming the corporate approach and allows them to grow.
- Higher and Improved Operational Efficiency
The strategies can be narrowed down and improved by keeping a customer-focused outlook. This ability to gauge customer needs and wants, powers them to satisfy their customers. A recent white paper on SAS informs that Advanced analytics has helped Rogers Communications to become more customer-centric. Due to it, they were able to enhance customer satisfaction and preserve its leadership in Canada’s media and telecommunications sector. This surely promoted operational efficiency thus improving the profits of the company.
The big data analytics tools such as Hadoop and cloud-based analytics assists in reducing the cost of storage which enhances the productivity of the business. It serves as providing various new options for research and analysis.
Data Analytics has brought various benefits of the technology leading to enormous growth in multiple industries ranging from
- Life Sciences – it drives the slow and expensive process of clinical research to deliver more intelligent and automated solutions.
- Banking – it helps to perform cluster analysis which drive easy information access.
- Healthcare – data management serves as an essential tool to go through large volumes of data in immediate times.
- Technology – derive new sources and improve processes through integration of IoT, AI, etc.
- Consumer (Retail) – customer buying behavior, customer loyalty and such endless answers can be achieved with just a few clicks on achieved database.
- Manufacturing – turning complex supply chains into simple opportunities is served through extensive use of Business Intelligence tools.
- Government and many more.
The applications of data analysis such as Fraud Detection, Risk Analytics, Optimization (e.g.: routes of self-driving cars), healthcare, management of resources, delivery logistics, web results, strategy and planning, etc. has led data analytics to become one of the essential asset for companies.
In light of this trend, an in-depth knowledge of data analytics can be a major contributor towards advancing your career and making strategic decisions at workstation.
The data extracted from various business analytics tools has led to knowing the needs and wants of customers better, which in turn, helped in developing and improving new products & services which has benefitted the companies at large.
Through Data Analytics, businesses can rely on quick, agile decision making to stay competitive and so we can say, it is the right component that makes the businesses tick. With valuable input of data analytics into today’s corporate dealings, its importance has further amplified which leads to intense competition and higher demand for data analysis professionals. It has become one of the most evolving fields which finds a huge potential in the field of Information Technology.
Thus, the time has come for organizations to keep themselves abreast of data analytics technologies. It is the chance to never miss the right opportunities for all organizations in different fields and industries.
Kanan is a fine writer with over 2 years of exposure in all processes of SEO, with strong analytical skills and a customer focussed outlook. She is a people’s person and believer that problems can become opportunities when the right people come together. She loves reading success stories and wishes to publish a book!