• Introduction
  • Three methods of business analysis
  • Why Is Business Analytics Important?
  • Business Analytics Popularity
  • Top 10 Benefits of Business Analytics
  • Takeaway

 

Introduction:

Data is an invaluable asset that can be leveraged to grow your business, but only if you have the right expertise. There are software and easy-to-use tools, but turning data into something meaningful and purposeful is not easy- even for those who are not numbers-savvy.

MicroStrategy (Source) reveals that most organisations that are using business analytics tools reap these benefits:

  • 60% improvement in cost-efficiency and processes
  • 57% improvement in strategy
  • 52% improvement in monitoring and financial performance

The latest research also suggests that 71% of businesses will enhance investment in business analytics over the next couple of years. Therefore, business analytics is a field that is growing by leaps and bounds with no signs of slowing down. This opens doors to job opportunities for professionals who want to get into this niche. (Source)

In this blog, we give you the top 10 benefits of business analytics in this ever-evolving digital era. But first, let us give you a little insight into what business analytics is and why it is important for businesses that want to succeed in a competitive world.

 

Business Analytics

Business analytics involves the usage of quantitative methods with the aim of transforming data into a meaningful set that helps organisations make logical and informed business decisions.

Three methods of business analysis include:

  • Descriptive, which uses historical data to identify trends and determine patterns.
  • Predictive, which uses statistics to forecast outcomes in the future.
  • Prescriptive, which tests and uses techniques to determine which outcome will offer the best results in a certain scenario.

Based on your business requirements and objectives, you can choose one or more of the methods mentioned above to make the best use of data.

 

Why Is Business Analytics Important?

Knowing everything about your industry is critical for success, and the data that drives those decisions can make or break your organisation. To attain a deep understanding of how to use this information effectively in business strategy, branding choices, product features – from logo colours all the way down to its functionality – there are a number of steps one needs to take.

Knowing what works best when it comes time for making key marketing strategies like choosing colour schemes or designing logos takes some studying up on as well as experience with trial and error. 

But if done right, every detail will play an important role in helping get results out of each decision made by using relevant information derived only after doing research into insights gained through analysing big data sets.

 

Business Analytics Popularity

In this transformative digital era, business analytics has become a popular buzzword. Almost every business is using the power of data to help them make informed business decisions.

The reason why businesses are on the constant lookout for business analytics professionals is simple – demand, availability and affordability.

Demand – Businesses are constantly looking for analytics experts to help them make data-driven decisions and cater to their market effectively.

Availability & Affordability – Advanced technology and affordable tools are available to businesses, but they need someone who knows how to use these to analyse the data and derive actionable insights.

Let’s dive into the top 10 benefits of Business Analytics.

Business analytics is extremely beneficial for organisations.

  1. Improves Customer Experience

The cost of gaining new customers is higher than retaining an existing one. Therefore, businesses are using analytics to enhance customer retention.

For instance, web-based analytics tools can help companies to analyse customer actions and buying habits. Based on the analysis of this data, they can recommend products or services that match their customers’ preferences.

This improves customer experience, which in turn improves customer loyalty.

  1. Simplify Strategic Review

Data can help businesses in creating efficient strategies and plans that help improve revenue while reducing costs. For instance, businesses can improve processes to enhance efficiency. They won’t have to rely on outsourced vendors to help improve their profits.

Business Analysts can help evaluate the performance based on data pointers, such as customer inputs and ratings and number of orders fulfilled. From a strategy viewpoint, business analytics prove to be extremely beneficial.

  1. Competitor Analysis

Using data for competitor analysis and studying their USPs, business strategies and relevant winning factors, businesses can efficiently get ahead of your competition.

  1. Quicker and Better Decision-Making

Businesses must adapt to an ever-evolving world of trends. They should improve their strategy to be able to make instant and informed business decisions. Using analytics, companies can gain insights into current trends and forecasts that they can leverage to benefit them.

  1. Improve Efficiency

Efficiency and productivity are not limited to company employees. Businesses must take into account other resources to ensure enhanced performance.

For instance, using data to analyse the temperatures of store coolers can help reduce the cost of refrigeration. Temperatures can be modified accordingly to reduce power consumption.

  1. Decrease Employee Turnover

Companies are losing out because of new employee hiring and attrition. This happens due to the onboarding of employees who are not the right fit for the job, thus resulting in a higher attrition rate.

Using analytics tools can help companies to examine an employee and identify if they are the right fit, track their performance, and review their stability, thereby negating onboarding and attrition costs.

  1. Improve Manufacturing Costs

To gain optimal results, businesses in the manufacturing niche often conduct multiple tests on their products. This leads to high manufacturing costs. Through predictive analysis, manufacturing units can use past data to make logical cost-benefit decisions without having to perform multiple tests.

  1. Improves Product Management

Retail companies offer numerous products but don’t know how to determine the right time to launch each product. Business analytics is what they need.

Analytics tools help businesses to analyse products that work best as per location, season, and various other factors. By using data, businesses can target the right audience who will buy a certain product at a certain timeframe. This eventually results in boosted leads and sales.

  1. Helps Identify Frauds

Analytics can help businesses to reduce fraud. Data can help identify fraudulent purchases based on analysis of a customer’s past transactions.

Predictive data analysis can help analyse a customer’s profile to determine the risk level involved in collaborating with them. This prevents damage and major losses. It even helps to build stronger relationships with loyal customers.

  1. Helps Tackle Problems

The first course of action when businesses face issues is to pause current operations. This results in huge production capacity loss and funds. To prevent these situations, businesses can make use of data to identify potential risks or foreseeable problems and avoid decisions that might cause them.

No matter how big or small a company is, uncertainty has the potential to enter its world. Hence, it’s important for every business to have backup plans that they can turn to when faced with unexpected challenges- and in this case, analytics are just what the doctor ordered.

Businesses can utilise data analysis tools like supply chain management software solutions as well as developing crisis management strategies such as optimising costs so that no challenge goes unanswered.

 

Takeaway 

Business Analytics is the Present and the Future.

No doubt that business analytics is highly beneficial for organisations. It can help businesses improve revenue, grow and reach newer heights. This niche is transforming the way businesses operate across the globe. With advancements in technology, there’s no doubt that the demand for Business Analytics professionals will continue to grow.

If you are someone who is interested in understanding business analytics, do drop by a message or comment.

 

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