How data can be used effectively to produce business insights
Every organisation big or small believes data plays a massive role in the growth and existence. These data's are used for various purposes like improving customer experience, developing business strategies, forming business decisions and knowing the response of the market. While so much can be deciphered from data, it’s important to read patterns, correlations and hidden hints engraved in these large volume of data.
Therefore, collecting data is just not enough. It needs to be analysed and put to effect. Big companies like Starbucks, Walmart etc use database of MNC giants to store data and then process it to find the required information. This is where Data Analytics comes into the picture. Data analysis is a process of inspecting, cleansing, transforming, and modelling data with the goal of discovering useful information, informing conclusions, and supporting decision-making. A leading business magazine suggests there are almost 61% of businesses that hoard data but doesn’t understand it.
What can a business gain from big data?
Big data provides answers to the most important, valuable questions of the business. It answers all the what, why and how’s of the modern day marketing and advertising, provides business insights to point out what must be done to proceed further. The three greater truths of business are Sales analysis, inventory analysis and consumer analysis. It also helps to stand against operational risk and take safety measures. For Example, e-commerce websites use huge data for their profit and to evolve strategies. These data help them understand browsing behaviour of customers and thus develop their functioning.
Understand the type of data
For any business, storing data can be expensive, and analysing it can add to the hefty amount. In this case, you need to set a few questions straight before proceeding further.
What do you wish to achieve from the information?
Do you intend to learn more about your clients, or are you taking precautionary measures to prevent fraudulent behaviour?
If you have established the purpose of your storage of data. You can work further to achieve business insights.
Data Collection - How do you collect these data? There are various mediums to collect data. Though it just depends on the type of business. Some companies use social media to extract data, others use RFID chip readings and GPS results, Transaction information is also a good way to revive data for any product or service based websites.
Evaluate Data Relevance & Accuracy - Now that the data is collected through various mediums, you need to analyse the accuracy or relevance of the data. Since a large amount of money is involved in this process, accuracy of the information should be verified. If the data is not reliable, try to collect data from a more accurate source.
Get valuable insights- To get a better picture of the business, you need to scrutinise the process of analysis. You know that the data you received is relevant or not, if it’s relevant, you need to dig deeper.
Do you know in detail about your company’s data and collection processes?
How frequently is the received information updated and stored?
Does the information get analysed on a regular basis?
Are there any security or confidentiality concerns regarding the stored information?
4. Data Visualisation- This is a process that makes your data easily understood by all. Numbers can be complicating, it can also be futile to make a team understand a strategy based on numeric representation. Thus, data visualisation is all about displaying the data in the forms of charts and graphs that are grasped by all. Google charts is one example of data visualisation that changes numbers into visually attractive pie charts and graphs. You need to bring all your team members on the same page, so change your presentation to data visualisation.
5. Turn Insights into Actions - You have now made the journey, but in order to reach the destination you need to transform these information into effective strategic plan of action. Do not forget to tighten the security, as pitfalls may destroy all your efforts and you may have to start all over again. If your team and you both are on board, carry forward with the plan of action to obtain succesful results.
Remember, each strategy is different from one other and going to provide a different outcome. There are no surely effective strategy, evolving your strategies with time, with the help of your facts and figures is the only way to progress in business.