Businesses may now capture data at various stages along the client journey. This data might include information such as digital clicks, mobile app usage, social media interactions, and more — all of which contribute to a data footprint that is unique to each user.
The wide diversity of data generated by businesses includes significant insights that could benefit the company greatly. The key to unlocking these valuable insights? Data analytics.
Data analytics is the process of examining sets of data to identify trends and draw conclusions about the information they contain. In this article, we discuss 5 reasons why data analytics are crucial for businesses.
1. Aids in risk management
As with most things, there are various risks associated with businesses. These could include financial, reputational, strategic and operational risks. Data analytics aims to safeguard all financial, intellectual and even physical assets of a business from internal and external threats.
The use of statistics and data analysis for predictive propensity models will ensure timely and prompt responses triggered by automated alerts and real-time threat detection procedures. Improved fraud risk management methods will arise from data analyses and transparent reporting of fraud incidences.
For instance, to determine which stores are most vulnerable to theft, a retail chain can utilise a propensity model. Data analysts may then use this information to decide the level of security required at the stores.
2. Assists in making informed decisions
Data analytics can help guide businesses in making informed business decisions. With predictive analytics, companies will be able to anticipate the reaction to business changes and further understand their customers’ needs.
Take, for example, an amendment to the prices of products offered by a business. In order to visualise the response and effect on the business, data analysts will evaluate the performance of these simulated changes. From there, the results gathered from data analytics will be used to help decision-makers decide if it is something worth implementing.
3. Improves cyber security
No matter the size of the organisation, cyber security threats affect all businesses. Moreover, given the rapid acceleration of digital transformations, data security is essential now more than ever.
Data analytics can help businesses pinpoint the reasons for previous data breaches or identify potential gaps in the company’s cyber security strategy. By tracking threats and analysing key patterns, data analysts would be able to gain relevant insights. This information can help businesses easily locate vulnerabilities as well as implement the necessary measures to resolve them, taking away the pressure to protect the organisation’s security. In addition, statistical models can also be used to highlight abnormal behaviours and prevent future threats.
4. Streamlining operations
Although this point may not come across as the most obvious when thinking about the benefits of data analytics for businesses, it is actually one of the most helpful, especially for businesses in the retail or supply chain industry.
Data analytics can help businesses streamline their operations and enhance efficiency. For instance, data analytics can reveal where bottlenecks occur for a retail store struggling to optimise its inventory levels or eliminate manufacturing delays. If the insights gathered highlight a specific issue, then the business can make the necessary changes to eliminate delays which could potentially result in a financial and/or reputational loss for the company.
5. Enhances customer experience
In a time where more and more businesses are emerging, it is crucial to provide customers with a pleasant and personalised experience in order to stand out from the competition. This is where data analytics come in handy!
As mentioned earlier, customers’ data is collected by businesses through a variety of channels – whether this is physical, online e-commerce stores or social media platforms. With the help of data analytics, businesses would be able to gain insights into their consumers’ behaviour, generate customer profiles and provide a more customised experience.
A personalised customer experience can bring about financial and reputational gains for the business, allowing it to grow to greater heights.
Conclusion
It comes as no surprise that data analytics plays such a significant role in businesses. With the ability to ultimately improve and transform a business, it is imperative for working professionals to be equipped with the relevant data analytics skills to propel the company forward. One way to upgrade your skills in this field is to attend a data analytics course in Singapore.
If you are looking for an online course in Singapore, look no further. Aventis Learning Group is your one-stop training solutions provider. Established in 2008, we are a leading multi-award-winning private educational institution providing professional courses and in-house training solutions for working professionals across the country.
Check out our data analytics and data science courses here. Additionally, feel free to drop us a message at training.aventis@gmail.com for more information.
