2 key benefits of data analytics for your business strategy
Many times companies suffer from inefficiency in their internal processes. This tend to reflect on the projects they carry out. Both for themselves or for their clients. Most of the time the reason for this is not that they work with wrong reports, but because, the questions they refer to are not the correct ones. Information, internal and external, is one of the main assets that a company has. Its collection, systematization and interpretation report a large number of benefits. And that is why data analytics is key to any company success.
Data analytics benefit 1: cost reductions
The experts conclude that the advantages of data analytics in a company are not something intangible or not quantitative. In this sense, several studies determine that a well-implemented data management strategy, based on Business Intelligence and Business Analytics tools, can result in savings of up to 30%. Most of those savings concentrate on marketing and publicity budgets.
Data analytics benefit 2: process improvements
But this ‘tangible’ cost reduction goes much further and belongs to many other aspects of the company. The example of Macy’s department store is very well known in this sense. This distribution giant started relatively recently to use data analytics tools and a big data management strategy. As a result, the company has managed to reduce the optimization process of their prices from 27 hours to one. We are talking about millions of items that Macy’s stores in its warehouses. Now, the department store can use 26 hours to carry out many other tasks and therefore improve the company’s results.
LinkedIn, the reference social network, implemented the ‘People you could know’ utility using data analysis tools. After the decision was made, the click-through rate on the platform has increased by 30%. General Electrics itself has allocated no less than two trillion dollars by employing big data analysis to manage the information related to the operation of its turbines. As a result, The improvement has also been remarkable.
Data analytics already exists, so ¿why not using it?
The above are just two examples that show us how the data analytics within companies, far from being an expense, is an investment for optimization and cost reduction. Actually, big companies are deeply transforming themselves and the way they work thanks to this kind of analysis. Finding relevant information, managing it, systematizing it, using it and transforming it into knowledge brings benefits to companies in terms of optimizing processes, improving the customer experience, identifying opportunities in the market and planning and launching internationalization processes.
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