Data Analytics is the method of analyzing data to help answer questions, uncover trends and make future predictions in every industry to help grow the business. As data is generating at an unprecedented rate, the need for Data Analytics is increasing, and the current situation demands, every company have a Data Analytics division for extracting information from every bit of data.
Let’s dive into the Top 4 Reasons as to why Data Analytics is important for Decision Making, and they are:
- The number 1 reason companies employ Data Analysts is to make Smarter and Intelligent Business decisions.
- Number 2 reason to identify customer patterns, trends, and needs.
- Number 3 to drive the performance of your business and also become proactive in finding new opportunities.
- And finally, Risk Mitigation and cost savings.
Data Analytics for Smarter Decisions
Data is generating at a very rapid pace and is piling up from different sources. If these datasets do not undergo analysis, then there is no meaning to Data collection. Gone are the days when your “intuition-only” propelled business growth.
Today, data goes through a series of processes, like Data Collection, cleansing, transformation, Data Analysis, and finally, Data Modeling answers the most pressing questions and supports the Decision Making process.
Numerous algorithms are employed on these datasets to uncover the trend and help make informed decision-making for the businesses to perform efficiently. For example, Starbucks uses Data Analytics in determining their potential store area in a region to fuel growth and performance. You can help a company to exercise smarter decisions by getting trained from industry-grade Data Analytics Courses.
Identify Customer patterns and trends.
Customers are the king of any business. Without the customer, there is no need for business to exist. So, it becomes paramount in this data-driven world to acquire customers by determining their needs and identify patterns to offer better services, user experience, and recommendations. A fine example will help make this point clearer, and that is, according to McKinsey in 2017, Amazon registered 35% of total customer purchases were from their Recommendation system. Artificial Intelligence is on the rise and is percolating in every sphere of life. You can help make a company grow by recommending the products their customers would like to buy, by getting skilled in AI through the Artificial Intelligence Course.
Data Analytics drives growth and performance.
Data Analytics helps in making informed decisions and supports the process. In turn, it helps in the growth of the business. And not only that, you make your organization a “Pro-Data” one.
Data Analysis makes you Proactive and helps you make smarter choices in predicting the future course of action in your business to maximize your chances of success.
Data Analysis helps in cost-cutting and Risk Mitigation.
Every business survives on money. If the money is handled effectively, it will help you in becoming a cost-savings company, which trims down unnecessary expenses. It also helps in mitigating risks, by helping the business to scale up or down based on the trend and pattern. And by making fool-proof solutions backed by data, to help you sustain in the business even at tough times.
Data Analytics is the fundamental approach of today’s companies all across the world. Because they have realized that to move forward they need accurate data, to help them grow and sustain in the business for the long term.