Analysis is an integral part of any successful business. This has always been a requirement even before the advent of analytics tools. Now that a large portion of analytic activities of companies can be digitized, more businesses are adapting business analytics tools to their systems. These tools help them perform real-time analysis to aid in proactive decisions-making. BI tools enables companies to anticipate certain business issues rather than react to them.
Business analytics may be used in any type of industry and in all business sizes. As long as data is accessible, a company can enjoy the advantages of this tool. The purposes and goals of the service go far and wide. Companies can use the data gathered to develop their customer service program, for product enhancement, and even in uncovering fraud.
However the tool is applied, it gives the same outcome for businesses who choose to use it. It provides valuable data that can be turned into insights that propel objective-based decisions for the company. Through this process, companies can penetrate their markets better while helping them build longevity in their chosen industry. Market trends may change constantly, but the availability of proper data will help business owners revolutionize their business goals and improve targets.
The process of business analytics can be best described using these 7 points:
#1. What would you like your business to improve on?
The first step is to define the needs of your business. Well-defined goals are a must in order to maximize your analytics tool. Bigger goals can be broken down into smaller ones for easier management. It is also important to know which goals to prioritize on. Questions on data availability, relevance, and utility need to be answered as well.
#2. Sort out the data
Explore the data as much as possible. Absorb the different types of information extracted from the research and learn which are of greater use. Determine which information should be retained and transformed as opposed to discarding. This will ensure that you only get quality end data.
However, this filtration process is not the final step in this stage. The analyst also has to reconsider the data using visualization and descriptive statistics. This will aid in extracting a meaningful conclusion out of the data given, leading to clearer insights to help achieve business goals.
#3. Analyze the data
This stage is the most important part of the process. Analysis and hypothesis testing are implemented using predictive techniques to see if predictions can be inferred. Here is where decisions are made. The data analyzed may also have a different form and may need to be changed into simpler terms so that insights may still be made from them.
#4. Build assumptions on possible problems and solutions in the future.
One of the purposes of business analytics is to become proactive in decision making. It is a tool that aids you in efficiently predicting possible business and industry-related issues. Using the data enables the analyst to decipher hidden evidences that can help map out the most advantageous steps the business should take along the way.
#5. Find the best Solution and apply to Scenarios.
When the best performing model is determined, the analyst will apply the predictive coefficients and manipulate them to match different scenarios. The outcome of each scenario is then observed. More problems are considered, and the management targets to solve them.
#6. Make SMART decisions.
The acronym SMART (Specific, Measurable, Assignable, Realistic, Time-Related) is the go-to advice when it comes to goal setting and decision making. Decisions that pass the SMART criteria is a guaranteed assurance that you are paving the right road for your business.
#7. Make necessary updates.
Market trends are constantly changing. That said, it is necessary to update your data and decisions along with the volatile landscape of your business industry. Insights may change as well. What is important is you keep an open and flexible mind in order to keep your business decisions at their most effective.
Business analytics tools may be overwhelming for first time users, but is definitely worth it. To keep up with the growing demand and fast-shifting consumer needs, a business analytics tool may be all you need to help run your business better.
If this sounds daunting, I encourage you to start out with a smaller problem to solve with analytics, and then you’ll be able to see how analytics can solve other problems in your organization.