WHY ANALYTICS IS HERE TO STAY
Analytics is a wave from the future. Terms like Business Intelligence and Big Data are becoming as common as “supply”, “market analysis” etc. Clearly, analytics is here to stay and you/your company should join the bandwagon- if you haven’t yet.
Wikipedia defines analytics as, “The discovery, interpretation, and communication of meaningful patterns in data.” Further definitions state, “Analytics is the systematic computational analysis of data.”
When it comes to best practices when starting or growing a business, analytics will soon be added to the list in conjunction with “understanding your customers”. In fact, analytics will be the tool used to achieve these goals set forth. The use of analytics inherently makes decision making easier. According to betterbuys.com, companies that use analytics reach decisions five times faster than companies that do not.
In 2018, there will be an increased demand of data professionals such as data officers, data scientists, etc. Already, there is a projected market revenue in business intelligence by 2020 of $219.3 billion according to Gartner.
By 2019, 90% of companies internationally will hire a chief data officer. 85% of business leaders swear by analytics. Over 50% of companies already have access to self-service BI and 40% already have mobile BI.
Already, most companies use analytics to develop new products, drive process and cost efficiency, find new customers, drive strategy and change; and manage risk. The main function of analytics is to analyze customer needs, value and profitability.
Additionally, the use of analytics will grow exponentially because:
Organizations struggle to find data insights– There is an increased reliance on business data to make decisions. Companies no longer want to invest third party polling to gather insight and instead want first hand insight.
Analytics tools allow leveraging of available tools such as Excel- BI tools such as Power BI and Tableau take advantage of existing tools that are used by companies.
Automation of report generation- A key driving factor in the use of BI, reports are used to show results of any analysis that has been conducted. BI tools generate reports automatically and keep them regularly updated as more data is analyzed. The reports are also presented in delightful visual formats such as dashboards or gauges.
Predictive analytics- Forecasting business trends is necessary to keep a business up to date and able to stay ahead of the competition in anticipating customer needs and market behavior.
Sales performance improvement- Using key performance indicators, a business can witness first-hand the performance of their sales tactics, show sales trends in the market segment and can help decision makers promote sales practices that will guarantee profits.
Revenue protection-. Analytics tools ensure that a company’s revenue remains uncompromised by identifying poor performance on time to allow for correction. The tools will minimize fraudulent impact from any fraudsters by identifying threats. Product traffic is monitored and changes in prices and margins are kept track of to reduce the risk of fraud.
Regulatory compliance- Analytics tools help companies accurately identify the legal and regulatory obligations required of them. They allow the business to automate the compliance tasks thereby allowing companies to meet these requirements.
Pricing strategy- Analytics enables you to monitor market prices and allows you to react to them before your competitors. Get timelines on competitors’ pricing and keep up to date with their pricing trends. Optimize prices for different purchasing demographics.
Risk management- Business Intelligence has greatly improved risk management. Through analytics, businesses can identify, analyze and mitigate any risks pertaining to their products.
With these and an ever increasing array of benefits that come with the use of analytics, it becomes clear that analytics is the way to go should you want your business to perform at optimal capacity and give you an added advantage in your market segment.
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