The Internet and technological developments have made available a series of effective tools for grouping a very large amount of data. When applied to business, this opportunity becomes incredibly useful and profitable.
According to recent estimates, approximately 2.5 quintillion bytes of data are generated every day. This growing volume of information is defined by the generic term “big data“, which means a volume so large that it goes beyond the possibility of traditional analysis.
In addition to the growing amount of data, information is also becoming more complex. Most of the new data collected is user-generated, meaning it comes directly from your audience through reviews, testimonials, support calls, and so on. Additionally, the collection of this information may be managed by the company itself or, in many cases, by third-party sites, such as social media. Thus, the structure and quality of the data varies from one source to another, adding another layer of difficulty for the company.
It is therefore necessary to be able to set up processes that can analyse the immense amount of data generated quickly and provide optimal results, in order to be able to develop strategies based on them that are able to obtain competitive advantages.
The advantages of data analysis to set strategies.
Creating measurable business goals
Unlike the mission or vision, company objectives must be SMART (Specific, Measurable, Achievable, Relevant, Time-based), i.e., specific, measurable, achievable, realistic, and defined over time. Without a structured analysis of the data, it is difficult to establish objectives that reflect these characteristics, risking invalidating the path to achieving them.
Data-driven decision making can improve other activities critical to business success. Analytics will reveal trends in the performance and productivity of different departments that might not otherwise be noticed by simple observation.
Promotes business agility.
The digital data landscape is constantly evolving thanks to technological developments such as artificial intelligence and machine learning. Without a clear approach to data management, your business can fall behind.
Communicate decisions more effectively.
Data-driven decision making makes business leaders more effective because it provides them with concrete evidence to support their strategies. When decisions are made based on observation alone, it can be difficult to convey reasoning to stakeholders. When you support goals with graphs, dashboards, and data visualizations that explain performance metrics, it’s easier for people to understand the basis of strategies and, more importantly, the path to achieving the end goal.
It fosters a data-driven culture.
Structuring data analysis at a company level favours the creation of a culture in which employees give priority to data in choices, even in daily ones.
The opportunity to deploy advanced analytics to outperform the competition is real, and the competitive advantage that can be gained from advanced data analytics is no longer limited to a few technology companies or data-intensive industries.
The opportunity is here today, across all industries, and companies that are committed to making the most of their data and investing in their analytics capabilities are already reaping the rewards of their choice.
A wait-and-see attitude is a luxury that no competitive company can afford.
And have you already implemented a data-driven strategy in your company?
Request a free demonstration with one of our consultants on the site www.bigprofiles.com and you will have the opportunity to see together how you can apply data driven strategies to your company, improving your business.