The total amount of data generated by the digital universe by the year 2020 was 44 zettabytes, or about 40 times as many bytes as there are stars in the visible universe. The growth of big data is predicted to continue; by 2025, 463 exabytes of data per day will be produced on average. Organizations urgently want experts with data analytics capabilities to convert vast amounts of unstructured data into actionable business insights.

How data analytics improve business management?

Few of the numerous benefits that technology has given company owners can match the power of data. Data can now be gathered from more sources than ever before, and when used wisely, it may completely change how corporate operations are conducted.

When new data is produced, it is first kept in a large repository called a data lake. Sadly, corporations are drowning in their data lakes, which means they have vast amounts of data that they are unable to comprehend or use. Experts in business analytics gain knowledge on how to gather, manage, and analyse vast volumes of data at the corporate level. Business analysts are therefore equipped with the knowledge and abilities to assist firms in utilizing data analytics to boost operational efficiency.

We’ve outlined crucial ways that data may help firms improve.

1. Data helps companies enhance cybersecurity

Today’s company executives prioritize risk management and compliance. There was an increase in fraud, account takeovers, and other cybersecurity concerns during the COVID-19 pandemic. Leaders are frantically looking for practical answers to reduce risk and satisfy new regulatory requirements.

According to research, it is more important than ever to integrate data analytics into risk management procedures since these capabilities are made possible by the power of analytics. Data scientists create analytical models that can identify possible hazards, evaluate their effects, and weigh the investment needed to control such risks against its financial and strategic ramifications. More data also increases the danger of noncompliance with data usage and privacy laws. Large businesses must thus safeguard their resources, clients, and other stakeholders while accessing internal and external data.

2. Data drives ongoing performance improvements

Data may be a huge productivity driver for both individual and team success. It can highlight management’s areas for development and assist staff members in being more conscious of their working practices. This type of data may be an ongoing resource that continuously shows new avenues to progress as more and better data is collected, as opposed to a one-time investment in some sort of training or seminar.

The 2016 Workplace Trends Report by Sodexo is one illustration of how decision-makers might use data to develop positive, productivity-enhancing policy changes. When an insurance firm looked at group productivity statistics, they discovered that remote workers were 18–22% more productive than their office-based counterparts. Because of the quality of its data, the firm implemented a new work-from-home policy that has endured many leadership transitions.

3. Data aids in revenue gains

Increasing profits is the primary objective of many corporate efforts. What role does data play in that division? Let’s examine what the study indicates. In order to examine the effect that data has on important business performance measures, one University of Texas research examined into data sets from Fortune 1000 businesses across all major industries. The findings showed that even relatively little upgrades to current data can have a significant positive impact.

The study’s key conclusions showed that the typical Fortune 1000 organization could:

• By simply improving data usability by 10%, the company might increase revenue by more than $2 billion annually.
• Increase return on equity by 16% by only improving data quality and salespeople’s access to it by 10%.
• Increase the intelligence and accessibility of data by merely 10% to boost return on investment by 0.7% (equating to $2.87 million in additional income).

Most importantly, the here-highlighted areas for data enhancement (such as quality, usability, and accessibility) only needed relatively little modifications to provide financial advantages.

4. Streamlining operations to be more efficient

Business executives may uncover ineffective internal procedures using data analytics, and then create new, simplified workflows that improve operational efficiency. By assisting managers in evaluating the efficacy of current workflows, examining the results of the processes, automating new workflows, and continuously improving them, data analytics contributes to better company management. Data also enables executives to assess if procedures are cumbersome, expensive, or difficult to utilize. Leaders may speed up all of their digital initiatives by switching from cumbersome manual operations to optimized procedures.

5. Monitoring market trends

Data must drive marketing efforts from planning to implementation. Teams establish key performance indicators (KPIs) to determine success metrics before launching a data-driven marketing campaign. The next step for marketing teams is to collect descriptive information on their target market, distribution options, market trends, etc. To find out which textual and visual messages are more effective with their target audience, marketing teams might do A/B tests on advertising. Finally, marketing professionals keep an eye on and evaluate the campaign’s outcomes to pinpoint its strengths and weaknesses.

CONCLUSION

Any organization may greatly benefit from data in terms of increasing efficiency across all areas of operations. The emphasis areas discussed here are only the tip of the iceberg. Even though they are generally relevant to practically all company types, they should only serve as a starting point for efforts to use data to increase productivity.

It’s also crucial to keep in mind that they’re not ends in and of themselves. For data gathering and analysis to be effective, it must be a continuous process. As a result, companies seeking to be more efficient should commit to making all of their decisions based on data. The benefits of doing so are obvious. Additionally, it’s a benefit that no business can afford to overlook.