Driving Business Growth with Analytics
Driving Business Growth with Analytics

By BOD Team
October 7, 2021 5 min read

According to the American organisational theorist, management consultant and author, Geoffery Moore, “Without big data analytics, companies are blind and deaf, wandering out onto the Web like deer on a freeway.” Simply put, in a data-driven world, the lack of or absence of data puts companies in a vulnerable position. At the same time,  just having data without the knowledge of utilizing it does no good either. So, as an increasing number of companies are gradually realising the importance and potential of analytics in business, they are now leveraging modern tools and technologies like the Internet of Things (IoT) and machine learning to collect data, convert it into insights and further into actions.

How to use Analytics in Business Operations

Analytics provides companies with valuable insights, making them aware of what works for them and what does not. There is a range of analytics tools used by various businesses based on their needs and demands - 

  • Types of Analytics Tools

R is a free, open-source programming language that is used for statistical modelling, data visualization and analyses. R is used by several renowned companies for their various needs. For instance, Facebook uses R for behavioural analysis related to status updates and profile pictures and Google uses the language for advertising effectiveness and economic forecasting. 

  1. Python

Python, an open-source, high-level programming language has developed into a powerful data analytics tool with the development of analytical and statistical libraries like NumPy, SciPy, etc. Python can handle various analyses on its own and integrate with third-party libraries for machine learning and data visualization. 

  1. Excel

Microsoft Excel is one of the most basic and widely used analytical tools. Excel is readily available and easy to use, allowing companies to collect and analyse data using spreadsheets, charts, graphs, etc. 

  1. SAS

SAS is a programming environment and language widely used for business intelligence (BI), data management and predictive analyses. It is a robust, versatile and easy to learn tool that has built-in collaboration features like the ability to push reports to mobile applications. 

  1. Power BI 

Power BI is a business analytics solution by Microsoft that allows users to create reports, displays and dashboards and post them. Power BI also connects with other tools such as Microsoft Excel and helps companies to visualize data, connect to different resources and share the outcomes with their teams. It is used by companies like Nestle, Tenneco, Ecolab, etc. 

These tools provide relevant and essential insights to companies to improve their processes by carefully analyzing and predicting future trends.

The power of Analytical Tools

Analytical tools not only help companies to analyse trends faster and more accurately but also mitigate risks and prepare for the future - 

  • Trend Analysis 

Trend analysis helps companies to predict future movement, behaviours and actions of business operations, profits, losses, etc. as well as customers based on the past and present trend data. This enables companies to not only be better prepared for the future but also provides them with the scope to grow, innovate and experiment. 

  • Mitigating Risks 

Analytical tools help companies to identify plausible risks and fraud across businesses in the future. This ensures that companies can mitigate future risks by taking the best possible preventive measures. 

Importance of Analytics in Business

Using analytics in business can help companies achieve key results such as informed decision making, enhanced customer experience and improved efficiency - 

  • Informed Decision Making 

Companies use analytics to minimize their losses and make informed decisions. While predictive analytics can help companies anticipate what could happen in response to the changes in the business, prescriptive analytics assist companies to determine how they should react to such changes. 

  • Enhancing Customer Experience

Analytics help companies understand their customers and their changing needs and demands better. Insights into customer behaviour will enable companies to provide enhanced and personalized customer experiences, ensuring that the company gets an edge over the competition. These insights can also be used by companies to constantly innovate and experiment by introducing new and improved products and services. Amazon, for instance, has enhanced its customer experience by personalizing shopping for its customers as well as providing suggestions based on past purchases, browsing behaviour, etc. 

  • Improved Efficiency

As companies gather large amounts of data at lightning speed, they are now able to make prompt decisions and improve performances. Moreover, companies can now identify and fix any malfunction in progress and performance, thereby saving time, resources and capital. This will enable companies to not only identify potential risks in the future but also take preventive measures to minimize damage. 

The benefits of analytics are not only limited outside the company, but also within the company. Every vertical in a business is now using analytics to improve performance and decision making. 

Business Analytics Within the Company 

While companies are increasingly adopting and embracing technology and analytics to improve operations, reduce costs and enhance performance, all employees must also welcome technology and analytics with an open mind. Analytics are now being incorporated in almost all sectors within the company - 

  • Sales 

Analytics in sales helps companies to generate and score leads by identifying the right audience. Moreover, analytics tools also help in increasing sales by identifying and personalizing consumer behaviour and purchase patterns. This further provides insights into product and/or service performance. 

  • HR 

HR analytics provides data to improve the performance of the workforce. This helps in understanding the impact of HR operations and initiatives on the overall performance of the company, keeping in mind its goals and objectives. Also known as people analytics, HR analytics provides insights into what is working well in the company and what is not. This ensures that the company is aware of its shortcomings and work on them to improve its overall performance and culture. 

  • Finance 

Financial analytics provides different insights and perspectives of the business’ financial data. This helps in financial planning and forecasting as well as focuses on measuring and managing tangible business assets such as cash and equipment. Analytics in finance provides companies with an in-depth understanding of the company’s financial status. It further improves cash flow, cash management, profitability and business value. 

  • Marketing 

Marketing analytics manages and studies the metrics data to understand the efficiency of marketing efforts such as blog posts, channel performance, etc. Tracking business performance data, indicator metrics and diagnostic metrics provides marketing professionals with relevant insights which can be used to drive growth and increase the popularity and reputation of the company. For instance, insights on social media posts on LinkedIn, Instagram and Facebook help companies know the best times to post. It provides insights into what kind of content the customer base prefers and engages with the most. 

Conclusion

In a competitive market landscape, companies need to leverage data and analytics now, more than ever, to grow and prosper. Radi, a data analyst at Centogene, rightly mentions, “Data analytics is the future, and the future is NOW! Every mouse click, keyboard button press, swipe or tap is used to shape business decisions. Everything is about data these days. Data is information, and information is power.”

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