Data Analytics For Better Business Decisions
There was a time when strategic business decisions were taken by executives sitting in board rooms after a lot of brainstorming. And often those decisions were hardly backed by data or statistics. The days have changed and today, executives don’t take decisions based on pure intuition alone. Data and analytics give businesses a strong foundation for forming opinions and taking critical business decisions. Let’s dive deeper into how data analytics is shaping and revolutionizing this process.
Reliance on objective data
Businesses are relying on big data to view business challenges, take decisions and execute strategies. Big data is objective data and it is the raw material for sound analysis. Valuable insights can be drawn out of the disposable data and can help in mitigating risks, understand the services of rivals, make balanced strategic moves and tap into customer base. Companies can understand which services or products are being used widely by customers and what features are trending hot in the market. This can help businesses know their customers better and learn about the emerging demand trends. The operations and services of the company can be tailored accordingly. Through such measures, a company can make far more informed decisions and better planned corporate strategies to establish itself as the first go-to choice of particular goods or services.
Less time, more value
Analysis of data provides real-time insights into what requires quick action. And quick action adds value to the entire data analytics process. Real-time change of data and meticulous analysis is transforming the way business decisions are being taken and because of the instantaneous information, decision-making is also occurring on the fly.
Data analytics is now helping businesses take swift decisions, and driving organizations further by deriving greater value. This helps to build a stronger competitive advantage.
Change of traditions
Companies that have been around for decades, have ingrained cultures, specific ways of working, stagnant mindsets, traditional business models and unchanged ways to look at the market. This makes them complacent and blind to changing market scenarios. In the absence of information, there is nothing to awaken them.
Data analytics solves the problem by lying bare the truth of market and the fallibility of traditional business models. The deluge of data harvested by the servers help the companies to understand the traditional models and approach that are not conducive for operations in a market that lives and breathes on agile methodology of innovation.
A company may not recognize the challenges and risks that stare right at its face. For example, a company called ‘Plasta’, that manufactures plastic bottles, may continue its operations, assuming that its market has not shrunk over a few years and sales are constant. But analytics on consumer preference may show that its customer base is slowly considering the option of steel containers, provided they become as cheap as plastic bottles. The day a company comes out with steel bottles as inexpensive as plastic bottles, Plasta may go for a loss. Data analytics can help Plasta understand a probable shift in customer demands and preferences and it will help its executives to devise a strategy well in advance. Plasta can transition to steel containers and be one of the first-movers in the industry of steel containers.
Human resource management
Data analytics can drive changes for HR-decisions. As per the Deloitte’s Global Human Capital Trends 2016 report, 77% of the executives today rate people analytics as a key priority. Companies are fast building their people analytics teams and bringing together different HR analytics groups into a single strategic function. HR programs are being correlated to business impact. Workforce data are being used to predict business performance and the figure of executives using workforce data has increased from 29% in 2015 to 44% in 2016.
Data analytics in business is helping to understand organizational dynamics and apply this in-depth understanding while forming strategic decisions.
Talent mapping and acquisition
Hiring fresh and best talent is of utmost priority for companies. No company can hire workforce that are still on old and obsolete technologies. Recruitment teams are also being aided by data analytics. Today, HR executives and consultants are using data analytics to understand the skills and roles which will be in high demand in the near future. This can help the companies to recruit adequate number of resources for a particular skill.
Forecasts can also be made about who can be a high-performer in the organization. The achievers can quick learners can be shifted to fast-track educational programs. The old hires, whose skills have become redundant, can also be identified and be sent for re-skilling. Such strategic business decisions are enabled by advanced data analytics.
Forecasts of regions
Data analytics also helps to derive information about the upcoming political or economical scenarios in a nation or region. If a region is witnessing a leadership change in politics, and if the new leader is averse to freedom of business operations, then the companies can take measures to contain the impact of such a political shift. Or if the region is experiencing some kind of political and economic turmoil, then companies need to take precautionary measures.
Data analytics of political situation and economical scenarios can help businesses assess the risks and mitigate them effectively.
Attrition is a serious concern for most companies, as it leads to loss of skilled workforce and loss of repute in the industry. Big data can help businesses understand the factors that lead to employee resentment and lead to attrition. Data analytics can also provide insights about the time of the year when the maximum attrition happens. This can help the companies to understand employee behavior and address the concerns that employees have. Moreover, companies can also understand the most common expectations of its workforce and prioritize them accordingly. This helps in HR-related decision-making and devising strategic corporate initiatives aimed at increasing employee satisfaction and fostering better work culture.
Data analytics is positively changing the way business decisions are being taken these days. The day is not far when data analytics will drive business operations and will irreversibly transform the way business is done.