Published on December 16th, 2021 | by Bibhuranjan0
Data Analytics & Its Role in Business Development
When some hear the words ‘Data Analytics’ it can cause their minds to glaze over. When tasked with examining large amounts of raw data, trying to make sense of it can evoke such thoughts as complex, confusing and complicated. So, we’re here to break it down for you, make sense of all that data and why it actually plays a vital role when it comes to modern business development.
So What Actually is Data Analytics?
Data Analytics is the science of going over raw data and then drawing a conclusion based on what was found. This is the simplest way for a business to improve upon their overall performance. Data Analytics are imperative in almost every industry meaning there is a growing need for data analytics courses for both young and experienced professionals alike. Data analytics, to put it simply, is the easiest way to understand what is going on inside your company.
There are four main types of data analysis:
Descriptive data: The most simple form of data, descriptive data refers to the KPI dashboards, monthly revenue reports and sales leads within a business.
Diagnostic Analysis: Once you have referred to your descriptive data, the next step is to look a little further with your diagnostic analysis. This examines the results found in your analytics and asks, how did we get that? Businesses should utilize this as it is a great way to see patterns in your clients behavior.
Predictive Analysis: Once you have identified possible client behavior, predictive analysis is going one step further and asking what is likely to happen? Of course this isn’t just a guess. Businesses utilize their previous data in order to predict future results. Predictive Analysis is often used in order to determine risk as well as trend/sales forecasting.
Prescriptive Analysis: The final step in data analysis is prescriptive analysis. This examines previous data and uses it to solve a current issue within the business. An example of prescriptive analysis is artificial intelligence (AI). AI looks at large amounts of data and uses this to make ongoing decisions to propel the business further. Companies such as Google and Facebook make use of prescriptive analysis to continue to be leaders within their respective industries; this kind of analysis is what’s known as Big Data.
Big Data And Its Role Within Business
Today, leading businesses are utilizing Big Data. Big Data is the overarching term used for software that inspects large, complex amounts of both structured and unstructured data too complex for conventional data management tools. Big Data is beneficial as it aims to improve the efficiency within the business, and can help drive revenue and internal opportunities. According to a 2019 article by Forbes; Big Data has revolutionized almost every industry by giving them access to “rich, granular information about its customers” this allows companies to predict upcoming trends, create ideal customer experiences and improve their own marketing by reflecting on the data presented to them, in turn projecting businesses forward in a way they could not have done without reflecting on their analytics. An example of Big Data is The New York Stock Exchange, which is able to produce one terabyte of new trade data daily.
But How Does It Help With Business Development?
Data analytics play a major part in understanding your business. Analysis creates key insights that can assist you in better understanding your clients, decrease unnecessary costs, as well as increasing your overall revenue. Without the correct figures, setting accurate goals can involve too much theorizing. Reflecting on previous trends allows you to set appropriate targets for your business; minimizing the risk of missed opportunities and setting unrealistic goals. Not everything you try is going to work for your business. Rather than throwing out different ideas and seeing what sticks, reflecting on previous data gives you a black and white visual of what works and what doesn’t. Ensuring that analytics are a strong part of your business supplies you with a wealth of key insights that will help you to make informed decisions to ultimately grow and develop your organization over time.
These types of data analytics provide the insight that businesses need to make effective and efficient decisions. Used in combination they provide a well-rounded understanding of a company’s needs and opportunities.
Data analytics play a crucial part in understanding a business. They allow you to develop insights that will lead to better business outcomes. Therefore having a strong grasp on these concepts will not only propel you further in your career but allow your business to thrive, by undertaking a data analytics course.