With the arrival of the knowledge age, the motto “Who has the information, has the power” has changed to “Who uses the information, has the power”. This is because the world is now driven by information, and it has turned into an effective business tool.
The crucial part of that world is data analysis. Not only can it help reduce the chances of error and provide insights into future organizational decisions, preserving customer trust, but more importantly it can fuel a company’s growth in efficiency as well as profitability. That’s why so much attention is being gathered on data analysis these days – because its importance to every market participant cannot be overstated!
In addition to bringing companies ever closer to data-centric management, this interconnected reality favors those who strategically use the information available around us. It is crucial to note that data analysis is not a peripheral process. It goes beyond what we can conveniently see on a spreadsheet and understanding how it works, but it also goes into finding out how to use it effectively so that we can be leaders in what the future holds.
Image credits to Lukas.
Business uses data to make sense of something that has already happened (hence, “business” in its first use was about taking advantage of things already existing in an environment). The process of analysis is the act of revising some information, especially to take decisions. It is a procedure that checks the facts and figures provided with the aid of inferences or ideas about what might have happened, or what could happen.
The above definition applies to any kind of decision-making, but we’ll concentrate on its business implications. What is important to understand is that every company needs to process data to make judgments about future trends, opportunities, and threats to help it operate effectively. Business analysts don’t simply read numbers and create reports; they ingest historical data, analyze it against their experience, apply statistical models and perform simulations.
Image credits to fauxels.
The fact that data analysis is now a competitive advantage is not news. However, the fact that your organization must rely on stats and figures to make the right decisions has not been fully understood by everyone.
If you are in charge of making decisions that affect your organization’s future, you cannot afford to ignore data analysis because it can be used in several scenarios:
● Businesses can use it for strategic planning, online marketing, and for pricing products and services.
● A clear understanding of customer behavior is much more valuable than random guesses about what consumers want from the marketplace. Data analysis helps make educated guesses based on numbers, which results in products and services better tailored to people’s needs.
● Data analysis is an essential tool for financial planning and forecasting. It helps businesses measure performance, and in cases where they are unable to respond positively to unexpected challenges they will be ready to react as soon as possible.
● Data analysis is increasingly branching out into areas other than business intelligence. It has already been used extensively in scientific research (especially in medicine), for example.
Curious to find out how you can find interesting data for your company and how to analyze it? Take a look at our blog in other posts we worked on these issues presenting some tools.
If you prefer, talk to a BIX Tech expert consultant.