We’re witnessing various technological advancements in a way we’ve never seen before. Technology is taking over the world in a way we never could’ve imagined, the internet has become an integral part of our life – everything’s connected. With everything being connected, it’s easy to see how all of that lead to a new era in the industry. An era in which information is as valuable as it ever was.
Data collecting and analysing has never been more important, which is why the demand for data analysts has never been greater. Highly skilled individuals that can interpret data and can make a sound decision based on that information are what every successful business needs nowadays.
However, for many, it’s still hard to believe that there are actual benefits to data analytics and many wonder is it all actually worth it. On that note, we’ve decided to dig a little deeper and find out all that we can on the subject, so we can help you discover what it is that business intelligence analytics can do for your business and why you should hire a data analyst.
What Is Business Intelligence?
Before we can answer how you can benefit from BI and why you should hire a data analyst, we first need to understand what does BI actually mean. Business intelligence, or BI, is simply speaking, analysis of the collected data and information in order to make better business decisions. Sounds rather simple, doesn’t it?
However, regardless of how simple it might sound, in reality, it’s quite more complex. In a lot of cases, companies will collect an unimaginable amount of data over the years. The bigger the company – the bigger the data file. Unfortunately, what happens in most cases is, the information is being built up and left on a hypothetical shelf to just sit there and collect dust. Why is that?
Well, on its own, the information doesn’t really mean all that much. It’s just a bunch of useless data and many treat it that way. Well, that’s not entirely true. Even though it may seem like the data doesn’t hold much weight, in the right hands, it holds a lot of power. That’s where BI comes into play.
With the help of an expert and business analytics software, all of the information can be processed, understood and converted into a useful piece of data. Something to fuel future decision making based on previous experiences.
Why Do You Need Data Analytics Exerts?
So, how does it all fit into a successful business model? Why do you need data analysts? Well, let’s find out.
1 Minimizing Risks
As you probably already know, with any business out there – there is a risk involved. Whether we’re talking about launching a new product, a new marketing campaign, a new investment – it doesn’t matter, there’s always risk involved. Luckily for you, you can easily minimize that risk through the magical world of business intelligence. It all comes down to well-thought-out decisions, based on collected and analysed data.
For instance, if you’re planning on launching a new product, you can safely rely on both internal and external data to paint a clearer picture as to what you might expect. You can take a look at current market trends, you can take a look at previous sales figures or how similar products did on the market and make a better estimate of the product’s future. The same thing applies to investments. By monitoring the market and analysing data from various sources you can somewhat accurately assess whether the investment you’re about to make is a good one, or not. Sounds rather simple, but it isn’t, which is why you would need a data analyst who can easily read into a business intelligence system and make a sound decision based on that.
Having a solid, fool-proof plan for what comes next is crucial for running a successful business. According to realworldanalytics.com, one of the most common problems many business owners face is the fact that they can’t predict the seasonal variations in sales and they end up making the wrong decisions. By analysing the sales data from previous years and some common seasonal variations of the market you can easily plan ahead and adjust your business plan accordingly.
3. Answering Your Customer’s Needs
The key aspect of every business is understanding the clients and customers and their needs. Businesses depend on their customers and vice versa. Whenever you notice someone talking about running a successful business they’re talking about understanding your customer base – that’s just the way it is. As a business owner, you have to know what your customers need. You have to know their problems and you have to offer them a solution to their problems. How can you know that? By simply analysing the customer data, their preferences, shopping habits, requirements, likes and dislikes and so on. Once you’re on top of your customer’s needs – the business will start to flourish.
4. Becoming More Efficient
Analysing internal data is as important as analysing the market or customer data. You could be doing everything right externally – but your operation could be struggling from the inside. By analysing the relevant information from within, you can easily isolate and identify the potential problems, find the proper solution and improve your efficiency as simple as that.
5. Cutting Costs
Cutting operational, or any other costs for that matter, is what any successful business owner will strive to do throughout his life. By combing through all the collected data, one can easily identify where all the money goes. During this process, you can notice if there are any problems in cash flow, whether you’re spending too much on a particular thing and what are your money-saving alternatives.
6. Gaining An Edge
Being a flagship and being in front of your competition is what most businesses can only dream about. One of the best and easiest ways to achieve that is to stay on top of everything. How can you do that? You guessed it – by analysing the data. Expert data analysts can find hidden gems in any piece of information and they can help you gain the edge over your competitors.
As we all know – knowledge is power. How do we gain knowledge? By learning new information. Pair that up with someone that can successfully analyse that information and make the most out of it – you get a recipe for a successful business venture. Hopefully, we’ve managed to show you just why you should hire an expert data analyst and how it can benefit your business.