Do you know what the most precious resource in the world is? If you’re thinking oil, it’s time you update yourself. Oil was once the most coveted resource; it has been surpassed by data. In our digitally connected world, data is the most valuable resource. Every day mind-boggling amounts of data are being streamed and produced.
Most companies around the world, across various industries, are in the business of data. About 97 percent of businesses use data to power business opportunities and 76 per cent use it as a central part of informing business strategy.
Such pertinent numbers demand the question- why is data so valuable in the business environment?
Essentially data can be understood as information, particularly customer information. For businesses, access to data, is the fastest, the surest way to gain customer insights.
Unstoppable tech giants like Google, Amazon, Facebook, and Apple are perfect examples of this. Every bit of customer information is used to determine what appeals to customers, their buying habits, and what can be sold to them.
This information allows businesses to tailor marketing strategies of their new products and personalize launch campaigns. With better customer insights, marketing professionals are likely to increase their budgets for marketing intelligence as well as resources that help store data.
Analytics is important to make sense of data to increase profitability. Without analytics, data would be meaningless. By acting on insights derived from analyzed data, businesses can grow to the next level.
Worldwide revenues for big data and business analytics are expected to maintain a 12% increase up to 2022 with a compound annual growth rate of 13.2%. By 2022, experts predict the worldwide big data and business analytics revenue to be $274.3 billion.
There is no doubt that data analytics and tools are evolving at an unprecedented rate. More companies are making attempts to sell their data, now more than ever before which confirms this.
Data analytics is at the core of countless advanced technology solutions and is set to gain momentum for the foreseeable future.
Leading companies are reorganizing their architecture for faster, more comprehensive access to data analytics and related insights. This requires investing in modern technology to remain innovative and competitive. Big data and analytics are at the heart of these investments.
Let us explore ways in which companies use data analytics:
- Analysis of data patterns, scientific analysis, and leveraging technological tools is possible using data analytics techniques.
- Reduced expenses and optimized costs, which improve business efficiency and bring vital cost advantages for storing data.
- Analytics helps process existing data and derive meaningful information from it. This leads to faster and well-informed decision-making. Analytics also helps inform future scenarios to make sound business decisions.
- Increase in efficiency, ease of work, and quicker, and cost-efficient business processes are all benefits of using data analytics.
- Data analytics has a pivotal role to play in mitigating risks for businesses. Security and fraud analytics safeguard physical, financial and intellectual assets from internal and external threats. Companies can quickly detect and prevent potential fraudulent activity with efficient data analytics capabilities.With big data methodologies, real-time threats can be detected using automated alerts and mitigation. The integration and correlation of data across a company offer a unified view of fraud across various lines of business, products, and transactions.
- Businesses can track customer preferences and needs to give them what they want. Integrating customer insights into products does wonders for a business. The products a business offers is their lifeblood. Effective data collation, combined with powerful analytics helps companies remain competitive and anticipate changes in consumer behaviour and preferences. This maximizes customer satisfaction and develops a strong bond between a company and the customers.
Owing to the tremendous benefits and applications data analytics offers, it is clear that analytics is here to stay. Any industry touched by big data is better for it. Let us look at how data analytics influences different industries:
- Retail- To consistently meet customer demand and predict future demand, retail stores employ data analytics in their business operations. Big data also helps employees understand what motivates customers to make purchases and design incentives that are most likely to achieve success.
- Healthcare- Medical facilities are always trying to find a way to keep operating costs manageable and improve patient outcomes. Usingpredictive analytics, physicians can make better diagnoses and determine likely results of specific treatments. Better staff scheduling is also made possible with analytics.
- Manufacturing- In this industry, analytics helps calculate the probability of system failure while including stress factors, operating environments, and quality levels. Manufacturing professionals depend on analytics to learn which machinery needs maintenance and repairs before they break down. Manufacturing plant managers use insights from analytics for output needs and future sales, as well as to understand when to change the scale of operations with changing requirements.
- Banking- The banking sector is increasingly relying on analytics for better customer service and to boost efficiency. Fraudulent activities are risky and costly for banks. They also impair customer trust in the banking institution. Analytics help banks to identify characteristics associated with strange and illegal customer behaviour so that they can intervene in time to prevent fraud. Big data analytics is also used for screening applications during customer interactions and to determine ways to encourage customer loyalty.
- Media and Entertainment- Consumers in the media industry expect rich media on-demand in a variety of formats and on a variety of devices. Big data analytics helps to tackle challenges in doing so. These include collecting, analyzing, and utilizing consumer insights, leveraging mobile and social media content, and media content usage.
The Road Ahead
Initially, analytics supported decision-making, now it is enabling decision making that is better than what companies could do on their own. Organizations will be able to reduce their investments in analytics platforms as all organizational needs will be scaled using the cloud. This may include analytical building blocks, such as data lakes, machine learning tools and Hadoop. It will be much easier and user-friendly to link different kinds of data from multiple sources with each other to get insights in real-time.
It’s clear that work in the domain of data analytics is plenty and is only getting more exciting with the coming years.