Business Analytics: Gaining A Competitive Advantage
Over the years, the number of companies has increased, especially with the advent of online businesses. However, they will notice a phenomenon where small business startups emerge and perform better in niche markets reserved for large companies. This happens mostly in the IT industry and for obvious reasons. As your business grows, you collect a lot of data about the market, more than your customers. The question is whether you use this information with available tools as part of your strategic planning. Business Analytics (BA) is the latest data-driven decision-making tool you need to apply to reposition your brand and beat the competition.
Once you understand what business analytics is all about, the next question is how to apply it and what benefits you can get from the investment. The analysis includes some key components that you can apply to your needs in your organization. Key data aspects include performance scorecards, trade expenditure analysis, inventory analysis, purchasing analytics, financial and cost analysis. To achieve business intelligence, the following spectra are of fundamental importance:
Data mining; You should use available tools to search the data and find hidden but useful trends that can be used in planning.
Forecast This includes predictive models that use the data obtained to predict future business developments such as profit margins, sales, and customer preferences.
Data visualization; Graphical data separation and presentation give you insights into the future.
Statistical analysis; When you achieve a certain result, you should be able to explain why it occurred.
Quality improvement; By following quality initiatives on an ongoing basis, you can see if the steps taken will deliver the results you want.
The process begins at the data extraction point from multiple sources, cleanup and repository in a single repository system. Then the required information is determined using various tools. Applying BA to your business has many benefits, including increasing productivity and cost efficiency, building stronger customer relationships, reducing costs through less waste and better policies, improving decision-making, better aligning resources with strategies, improving competitiveness, and more Synchronizing financial and operational strategies among many others. In essence, Business Analytics leads to higher revenue in one way or another.