Most enterprises today aim to become data-driven companies. However, to be data-driven means cultivating a mindset throughout the fabric of the entrepreneurship in order to use analytics and make fact-based decisions for business. Companies that have used data driven decision-making philosophy are expected to benefit more in the age of digital transformation. You could use the data about the market or any business scenario and take appropriate actions to mend outcomes in your favor.
As businesses plan to maximize the use of data and analytics, the top performers in the market are able to differentiate themselves through their ability to use the correct and accurate data at the right time for final decision-making. An enterprise-wide approach to gather and analyze data is valuable for the organization. Data mined in disparate silos is bound to undermine the quality of a company’s decisions, increase risk and reduce the quality of corporate data. Therefore, it is important for a company to use the proper kind of data based decision making systems.
Deploying analytics pilot programs provide the users with experience and learning of analytics. They can hence, create a solid business case for the potential value of a comprehensive analytical program. Regular use of organized data and data analytics also enable executives, managers and employees to think and act differently. They dig deeper into the more important questions: Who are our most profitable customers? Are the sales strategies improving as per our requirements?
Firstly, it is important to define which success metrics will be measured and accordingly map those metrics to data sets that contribute to those measurements. Next, it is highly advisable to use data and data analytics in everyday workflows. Role-based workflows with interactive visualizations provide users with streams of relevant insights that help in quicker solving of problems and decision-making.
For example, let us look at how data analytics drove Rolls-Royce to success. The three key areas of operations for them are design, manufacture and after-sales support. They have huge clusters of high power computing that aid in the designing process. The process also generates tens of terabytes of data on each simulation of a jet engine. By visualizing all this information and much more, the company decides whether the product is good or bad. In this process, data analytics makes it easier to work as it decreases development time and improves quality and performance.
Talking about the retail banking industry, the rise of digital banking has cause exponential growth in the amount of customer data that banks have. Proper analysis of this data along with usage of technology helps the banks to maintain their status as market leaders. Data analytics helps the banks to offer products and services tailored to customers in real time and enables them to emulate online retail agents’ ability to recommend products to the customers. Data also means that banks can measure the degree of risk involved in offering a loan to a customer. Predictive analytics models like the FICO scoring system help in analyzing consumers’ credit history, loan or credit applications and other information to make sure whether or not the customer can make their payments well in time.
Another popular thing these days in data analytics is a Dashboard. It is critical for a company’s path to glory as it provides a brief snapshot of the entire business. They provide insights, recommendations for action and also let you study the impact of any decision on the business.
To sum it up, analytics is much more fundamental to the business than just gathering interesting facts and figures. It is about turning insights and predictions into action. It is about understanding the audiences, your customers. It is also about optimizing campaigns and targeting relevant content. In short, it’s about using data insights to drive every aspect of your business.