Business analytics has changed the way companies make decisions. In fact, studies say that 63% of organizations report that the use of big data and analytics is creating a competitive advantage for their business. This paired with the 73% stating that they have received measurable value from implementing big data initiatives. But what is business analytics and why is it so important for success?
Essentially, business analytics refers to the use of methodologies and tools to collect, analyze, and monitor relevant business data, discover patterns, and opportunities for enhanced decision
making. With more sources of information providing insights about customer behaviors, sales, marketing, and more, gaining a depth understanding of business analytics can lead companies
and professionals to succeed over their competitors. For this purpose, there are several BI tools that help businesses deal with their data efficiently, empowering everyone to become data-
driven without the need for technical skills.
Some of the main benefits businesses can gain from adopting analytics practices and tools include:
- Increased revenue: Business analytics helps companies in identifying new investment opportunities as well as avoiding financial inefficiencies. By getting detailed information about what happened, why did it happen, and what is likely to happen next, businesses can plan their strategies ahead of time and significantly increase their revenue. For instance, by doing a market analysis you can find new areas to invest in, or new product ideas that your target customer would like.
- Informed decision-making: Making decisions based on simple intuition will no longer make the cut. Markets are getting more crowded every day and making data-based decisions will give businesses that much wanted competitive advantage. With technologies such as predictive analytics and artificial intelligence, they can generate accurate forecasts and build their strategies based on factual information. This will lead to smart resources allocation as well as an improved decision-making process.
- A better understanding of customers: It is no secret that customers are the backbone of any business and keeping them satisfied is a top priority. With business analytics, companies of all sizes can extract detailed insights about customers’ behaviors in order to create targeted experiences that will lead to higher ROI. For instance, you can understand which channels your customers are more likely to buy from, what issues they face while doing it, at what times are they more likely to buy and much more.
- Operational efficiency: In addition to tracking customer data, business analytics allows organizations to gather data from every department and function. This allows them to spot any operational inefficiencies and find solutions fast and efficiently. For example, a company can plan its production by analyzing its historical demand and avoid wasting resources with overproduction.
These are just a few of the multiple benefits that business analytics can bring to a company. The use of data will not only improve your operational efficiency but can also empower employees to perform better by seeing how their actions developed in time. There is no doubt that data is here to stay and businesses who want to succeed need to invest in efficient data management practices and tools that will skyrocket their performance.