DATA ANALYTICS ENABLING BUSINESS DECISIONS & GROWTH
Because of the confluence of an increasingly complex environment, an overwhelming abundance of data, and due to fast paced business world need to stay ahead of the competition, organizations are focusing on using analytics tools to drive strategic business decisions. Business analytics can help managers better understand their company’s trends, predict market changes, and mitigate risk. Companies are using analytical and mathematical tools to make company decision more precise, accurate by decreasing risk and increasing profit.
Big Data and data analytics are disrupting established market models and environments. Current expertise and technological silos are being eroded by introducing new data sets and adopting substantial data migration capabilities. From personalized products and services to scaling digital platforms to suit buyers and sellers, businesses use market analytics to make quicker and more fact-based decisions.
Analytical professionals today have access to a diverse set of analytical capabilities and techniques. These techniques range from the most fundamental, “descriptive analytics,” which involves preparing data for further analysis, to “predictive analytics,” which employs advanced models to forecast and predict the future, to “prescriptive analytics,” which uses machine learning algorithms and dynamic rule engines to provide interpretations and recommendations. Given their diverse use cases and implementations, it’s no surprise that these approaches are now making their way into organizational consumer, workforce, supply chain, finance, and risk strategies.
Data analytics is quickly becoming a keystone of strategic business decision-making due to its wide range of applications and use cases. Analytics fundamentally change people’s perceptions of data’s value, from enabling businesses to make consumer-focused marketing decisions to assist them in addressing critical organizational inefficiencies.
As the world has become more customer-centric, businesses have amassed vast amounts of consumer data and knowledge. Organizations must use these customer insights to influence their goods, solutions, and purchasing experiences to remain competitive. According to Mckinsey’s research, companies that strategically use customer behavior insights outperform their competitors by 85 percent in revenue growth margins and more than 25 percent in gross margins.
Managers can gain a thorough and refined understanding of their consumers’ purchasing patterns and preferences through careful market segmentation. A telecom company, for example, may use sophisticated and predictive analytical models to reduce customer turnover and assess the efficacy of marketing strategies. Similarly, an online retailer can learn about its online presence by researching answers to questions such as the percentage of new and returning users, bounce rate, and average session length. Such inquiries provide critical information on the types of content most likely to have the most significant impact on key customer segments, as well as the platforms and formats through which they are delivered.
While businesses spend a significant amount of time analyzing customer data and frontline monetization opportunities, it is also critical to focus on increasing productivity and efficiency. Companies can benefit from data and analytics to reduce inefficiencies and streamline operations. Or using analytics to track key performance indicators in areas such as organizational excellence, product innovation, and workforce readiness will yield quantifiable insights that will assist businesses in solving complex problems.
Business analytics can also be used to improve organizations’ recruitment process, retain and grow talent. For example, a consulting firm in Asia recently agreed to undergo a significant reorganization. As part of this program, the leadership decided to recognize employees with high potential for success and better understand key success indicators. The analytics team first streamlined data points such as career history, education background, performance, age, marital status, and demographics. After running the collected data through several regression models, the team was able to classify the employee profiles with the highest probability of success in specific positions.
Another field where data analytics provides a distinct value proposition is the supply chain. Because of their complex design and immense contribution to a company’s cost structure, supply chains are fantastic places to look for competitive opportunities and advantages. Companies can use analytics to find hidden inefficiencies in current processes to save money and evaluate significant supply chain investments and decisions. Managers will then concentrate their efforts on specific change areas such as inventory management, channel management, procurement, and logistics.
Business managers must look through two lenses at the same time in this volatile world of data-driven disruption. First, they must recognize high-risk, high-reward opportunities, such as expanding into new markets or altering established business models. Second, they must remain committed to incorporating analytics into their core business decision-making process. Business managers can streamline internal business processes, identify evolving market dynamics, interpret and track emerging threats, and develop continuous input and development frameworks by incorporating data analytics into their core strategy. As a result of driving analytical transitions, businesses will gain a strategic advantage and remain at the forefront of digital disruption. Many leading institutes have started courses tailored to this specific ask and need. With the learning from the best MBA colleges in India one can have higher career progression along with helping organization to grow.
Assistant Professor, RDIAS