Firms have always relied on analytics to drive business growth and development. However, very few data analytics tools existed in times past, meaning that the available analytics were often vague or inaccurate. Nowadays, plenty of solutions exist for accurate analytics: a Bloomberg Businessweek Research Services survey shows that nearly 97% of companies had adopted analytics. There generally four different types of business analytics: decisive analytics, descriptive analytics, predictive analytics and prescriptive analytics.
Better Targeting Customers with Business Analytics
Analytical tools can provide interesting insights into consumer behavior. This could range from buying frequency, purchasing power, common purchases, peak buying seasons, and how much money is spent per purchases. It could also give you a breakdown by age, gender, and even geographical location. Such data can help you tailor your customer service goals and client engagement strategies. Unfortunately, only 9.2% of SMEs in any given region utilize customer data analytics. Lots of Fortune 500 firms are now starting to develop their own business analytics software or hiring experts to perform these tasks.
Analyzing Data to Identify Business Opportunities
Data analytics can yield otherwise unexplored trends and threads in business dealings that can quickly open up new business opportunities. This could range from learning new trade tricks, revamping an old units, finding new markets, or tweaking the products to meet specific needs. Scouring through data analytics could also yield underserved markets leading to significant market development. By ignoring analytics, most firms lose their ability to predict long-term trend and prepare for them. Most importantly, the analytics can help you find new markets as well as identify weaknesses in your model. These kinds of insights could be the difference between surviving and thriving.
Analytics on Enterprise Resource Planning
ERP refers to the business intelligence platform that enables firms to utilize integrated applications system. This platform can integrate back office functions like product planning, technology, human resources, sales, production, and services. This kind of system also helps you to monitor all internal operations and spot strengths and internal weaknesses. That sort of analytics is critical in creating seamless co-ordination of functions within the organization structure. This system can help you automate, and collect data from nearly all types of platforms and develop goals based on the analytical outputs.
Analytics yield performance drivers, priority requests, developing trends and the market stressors that need to be attended to. While the metrics differ from firm to firm and from industry to industry, it’s critical that you are able to get a feel of the core processes and how well they are. The kind of data and analytics generated from such synthesis will help you set big picture goals that will sustain the company for the long term. In such a fast-paced business world where product cycles come and go for short periods, it’s critical that you learn to generate data that informs longer-term thinking for survival.
Make sure you have the tools to work through the complex decision that have many variables, simple repetitive decisions, process optimization, figuring out connections, and how to test your projections. Such tools should enhance your reporting, methods of inquiry, avail multiple data sources, and dashboards. Every month the market unveils a newer, cheaper, faster, and more integrated means of carrying out analytics with little to no need for technical skills. As a firm, you ought to invest in platforms that generate real-time analytics especially if you are in FMCG industries or volatile markets.
Business analytics are the future of industries. Any firms that act as though they can ignore the role of business intelligence in decision making will soon close shop. This is further exacerbated by the fact that most analytics whether for HR or social media can easily be accessed for as little as $5 from lots of sites.
By: Dennis Hung