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Top Reasons Why Data-driven Analytics of Interest to Companies

Reasons Why Data-driven Analytics of Interest to Companies

Who would have thought that data analytics will play such a crucial role in the success of a business? According to McKinsey research, data-driven analytics companies are 23 times better in acquiring customers, 6 times better in retaining them, and19 times more likely to make tons of profit. If Data Analytics courses come to mind, a well-structured Executive PG Program in Management equips you with all the knowledge, tools and skill set for all things data.

So, why is data-driven analytics of interest to companies? To gain decision-making insights, data collection is usually accompanied by data analysis. Data analytics aids companies and industries in understanding the value of massive amounts of data to expand and thrive. It enables businesses to make accurate predictions about upcoming events.

Now, before moving forward with the concerned topic, let’s first understand what a data-driven company is?

A data-driven company creates a structure and environment wherein they value data and use it efficiently for decision-making practices. It comes in handy in all the departments- finance, marketing, HR, operations, etc.

Also, what does a data-driven approach mean?

When strategic decisions are made by analysing and interpreting raw data rather than just making an assumption, it is known as a data-driven approach. Using historical and current data, a data-driven approach can prove to be helpful in predicting the future. We face the risk of making incorrect assumptions and being misled by skewed beliefs in the lack of data.

Table of Contents

  1. What is Data Analytics?
  2. Reasons why Data-driven Analytics Interest of Companies
  3. Top Data-driven Companies
  4. Pursuing a Career in Data Analytics
  5. Concluding Data-driven Analytics

What is Data Analytics?

Data analytics, also known as data analysis, is a discipline that encompasses the tools, technologies, and approaches that a company employs to boost productivity. It helps to achieve a competitive advantage through the use of data. Data-driven analytics enables businesses and communities to reinvent, to become more inventive and forward-thinking in their decision-making. So, from simple BI, reports, and online analytical processing (OLAP) to more complex analytics, data analytics may come in handy in all environments.

Key Components of Data-driven Analytics

Data Mining

It is the process of breaking down massive amounts of raw data into consumable bits of information. Also, they look for abnormalities in chunks of data and examine the relationships between different data sets to find correlations. 

Predictive Analytics

It incorporates past data trends and patterns to predict the future. Organizations all over the world employ predictive analytics to identify patterns in the data that aids in reducing risks.

Business Intelligence

It entails turning raw data into business-relevant insights. These outcomes are used to come up with market strategies such as product positioning and pricing. It encompasses the use of visual tools like heat maps, pivot tables, and mapping methods.

Text Analytics

The practice of extracting meaning from textual communication is known as text analytics. You look for patterns and areas that intrigue you, then put what you’ve learned into implementation.

Data-driven Analytics

Reasons Why Data-driven Analytics of Interest to Companies

Evidently, it’s no wonder that we live in a data-driven world & it’s only becoming more pervasive. You want the correct data to make the apt decisions for your company to succeed. As a result, implementing data analytics strategies in place is critical. Organizations can benefit from such strategies in the following ways:

Targeted Content

Realizing what customers seek ahead of time helps marketing strategies become more focused. It enables businesses to personalize their advertising to a targeted segment of their user base. It even goes on to assist them in distinguishing which customer group would respond favourably to the marketing. Additionally, it lowers the expense of convincing a prospect to place an order.

Boosts Revenue

By harnessing domain expertise and conducting market analysis, data can help you determine what drives your competition towards profitability. Understanding what makes your company profitable allows you to uncover the shortcomings in your business strategy, allowing you to concentrate on enhancing it. You’ll never be able to fix your company’s approach if you don’t know what’s wrong with it. So, once you identify these flaws and address them, you’ll be on the path to generating great revenue.

Opportunities & Productivity

Data analytics can also help a business to identify further opportunities to optimise processes or generate revenue. It aids in determining potential issues & addressing them. Therefore, this allows a business to pinpoint the operation which performed the best and determine the areas that are vulnerable to failure and needs to be addressed.

Unbiased Decision-making

One is proactively depending on data-driven insights when they are making decisions based on facts, measurements, or statistics. This indicates that you are making sensible decisions based on genuine facts and data. Furthermore, removing the need to rely on your instinct to make a business decision allows you to make logical and unbiased decisions.

Ideation & Innovation

Recognizing the viability of the product/service you offer helps a business to achieve a profitable outcome. With data in the picture, everybody in the company, particularly those engaged with the product or service, is encouraged to innovate and rework new ideas. According to the data results, they can either create a new product or tweak existing products to meet the needs of their target demographic.

Tracking Workplace Performance

It assists a business in tracking and evaluating each employee’s performance and productivity. A business can properly identify whether or not an individual is performing to their maximum potential by monitoring this data over time. As a result, it assists a company in developing efficient standards that they can implement at both an organisational and case-by-case level, increasing the potential for development.

Top Data-driven Companies

From identifying the customer needs to introducing a new product line, companies are being heavily driven by data. The game-changer here is the power to make major decisions that could lead to big profits. Thus, data-driven analytics companies are dominating today’s market and will only be upscaling from here.

Nonetheless, let’s have a look at some of the top data analytics companies and understand how they have incorporated data analytics into their business.

Data-driven Companies

Netflix: Data came in handy at the Netflix workplace when implemented predictive analysis. It helped them to understand what their customers would be interested to watch.

Google: Google made use of analytics to make major decisions for the betterment of the employees. It tried to understand what an employee valued & worked on that. No wonder Google is a dream company for many.

Uber: From predictive analysis to statistical data analysis, uber uses it all. From predicting the driver’s estimated arrival time to showing surge prices to drivers location on the map, you will see analytics in play everywhere.

McDonald’s: Surprisingly, the world’s famous fast-food joint makes use of customer analytics to make fun changes to the menu from time to time. 

Coca-cola: The multinational beverage corporation incorporates image recognition and data analytics to create ads to target the relevant audience. This in turn increases their ad campaign ROI.

Pursuing A Career In Data Analytics

Every day, we create roughly 2.5 quintillion bytes of data, and it is only increasing. As companies are collecting data from anywhere and everywhere, they also want to make the most of it. This is where data analysts come into the picture: to clean data, interpret it and help the business make strategic decisions.

With numerous data analyst jobs present in the market, is it even prudent to pursue a career in data analytics? Let us find out:

It is in high demand

You can see 11 million job openings in the field of data by 2026. A lack of skilled candidates adds to the demand, making it a lucrative career path in the present. So, if you can efficiently analyze data and love doing it, there will be no better time to explore a career in data.

Distinct opportunities in the field

Not only do you have to stick to data analytics, but you will also have multiple opportunities to switch to including Data Scientist, Data Engineer, Machine Learning Engineer, BI Analyst, Data architect etc.

It is not industry-specific

The cost-effective solutions & powerful decision-making abilities come in handy in several industries like healthcare, entertainment, retail, production, finance, technology, operations, R&D etc. 

Flair for maths & statistics

If you have a natural calling for maths and statistics, you will be a hit in data analytics. You don’t need a degree in mathematics, however, you must have a decent knowledge of calculus, discrete math, algebra (basic and linear), probability etc.

Brings out the decision-maker in you

Data analysts are frequently placed in roles where they must make strategic decisions. The insights found by data analysts have a great impact on new acquisitions, sales presentations, marketing campaigns and much more. As a result, a data analyst will have the big-time opportunity to contribute to the company’s success. You’ll also strengthen your communication skills by discussing your outcomes and predictions.

Lucrative salary & growth opportunities

Data Analyst salary in India ranges from 5 LPA to 12 LPA, depending on the years of experience you have and the skills you have honed over these years. Also, there are no limits to growth and development opportunities in the data analytics industry. 

You will find unique opportunities in and around data if you acquire the relevant skills. Data Analyst salary will never disappoint you, and the high demand for data analytics professionals will never have you stay out of the market for long. However, the key is to keep upskilling yourself and keep up with the ongoing market trends.

Also Read: Data Analyst- Job Description, Responsibilities and Skills Required

Concluding Data-driven Analytics

Without a doubt, data is the lifeblood of any company. With the huge expansion in Big Data and the opportunities that accurate data brings, its significance growing by the day. Using data-driven analytics innovatively and artistically will be one of the finest methods for businesses to establish themselves, outshine competitors, accelerate innovation projects, and achieve a leading position in the market over the coming years. Organizations must, of course, develop a culture that promotes data-driven decisions in order to achieve all of this.

0 Source: GreatLearning Blog

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