Data analytics can help entrepreneurs understand more about their customers’ behavior.
Various information is being collected daily by institutions in our technology driven world these days. It has led into the strategic use of data analytics in businesses in different sectors of the industry. Data analytics helps boost their overall market growth in so many ways.
Although a lot of people are unaware of data analytics, organizations have incorporated this practice into their strategic plans. As estimated in a recent study conducted by Bloomberg, big data and business analytics is seen to reach over $512.04 billion globally by 2026. Cloud-based big data analytics software is recognized as one big contributing factor for the growth of the global big data and business analytics market.
What is business analytics?
Business analytics makes use of statistical methods and software tools to analyze and interpret volumes of data. This helps stakeholders turn a number of raw data into valuable information. This helps them make smarter and informed decisions for their company’s overall growth.
Business analytics is generally classified as descriptive analytics which determines how one category responds to different variables. Predictive analytics which aims to predict the possibilities of specific future outcomes. Lastly, prescriptive analytics which is a mix of the prior classifications.
Uses of data analytics in the business industry
Business organizations can harness data from different sources. Here’s how companies worldwide are embracing the advantages of business analytics:
It helps fine-tune overall business operations.
It is seen to have improved different businesses’ operational efficiency. Through the use of predictive analytics, corporations are able to predict specific daily operational issues and machine maintenance before they become full blown infrastructure problems. More so, mobile networking providers are also able to use data analytics to foresee possible maintenance issues and prevent outages.
It helps businesses make better decisions
Business analytics allows stakeholders to have a clearer picture of the things they are doing efficiently. This also includes the aspects that need improvement within the organization. Business leaders are able to determine the causes of a problem and its possible outcomes. Through that, they can draw in possible solutions to the problem.
It helps identify new business opportunities
It allows companies to predict future trends, specifically on what products and services to showcase to customers. Data analytics can help entrepreneurs understand more about their customers’ behavior. Even so, plan out better marketing strategies and be able to produce new products or services for their target customers.
While business analytics has promising advantages for business growth, misuse of data may tend to lower down organizations overall productivity.
