Data is all around us and everything that we do results in new data. Every kind of electronic message, which we either receive or send like withdrawing money from a bank, every website that we visit contributes to the storage of data. In today’s world data is a commodity whose value is incalculable.
What is Data Analytics and How does Big Data Play a Role?
Fundamentally, Data Analytics or DA is examining raw facts & figures to get valuable information from it. (Read more about Data Analysis)
Currently, it is being employed with the help of Big Data in the major industries. The Big Data concept has been around for quite some time now and most of the organizations have realized that if they can capture all the data into the business, they can easily apply the analytics and gain important value from them. Even when the term “big data” was not used, businesses used the basic analytics to uncover the tends and insights.
Till a few years ago, businesses would gather information, unearth the information, and run analytics, which can be used for decision-making in the future but today the businesses can recognize the requirements for instant decisions. The organizations have a completive edge to stay agile and work faster.
Why a Business needs Data Analytics?
Big Data Analytics aids an organization to tackle the data and utilize it to find new opportunities. This leads to more smart business moves, higher profits, efficient operations, and happy customers. The idea is to share the business prospects in a better way in the future and to use it with an analytics concept.
Data is increasing at a rapid speed and the rate of growth of information is very high. Data generation occurs through many users, industries, and businesses. It is crucial to amalgamate this data that has been generated through the business. If it gets wasted, lots of valuable information will be lost.
Previously, skilled analysts were required for processing the data but these days there are tools used for high-speed data and this helps in incorporating the data analytics at the time of making decisions. As far as the audience is concerned you can make different decisions. Social media has enhanced data growth in the organization and thus changes can be made based on that.
Importance of Data Analytics for Businesses
The increasing importance of Data Analytics for business has changed the world in the real sense but an average person remains unaware of the impact of data analytics in the business. Some of the ways this has impacted the business include the following:
1. Improving Efficiency
All the data collected by the business is not only related to the individuals external to the organization. Most of the data collected by the businesses are analyzed internally. With the advancements in technology, it is become very convenient to collect data. This data helps to know the performance of the employees and also the business.
2. Market Understanding
With the development of algorithms nowadays, huge datasets can be collated and analyzed. This process of analysis is called Mining. Regarding the other kinds of physical resources, data collection is done in raw form and thereafter refined. This enables the collection of data from a wide variety of people, which further proves out to be fruitful for a better marketing strategy.
3. Cost Reduction
Big data technologies like cloud-based analytics and Hadoop can bring huge cost advantages if it relates to the storage of large data. They can also identify efficient ways to do business. You not only save money in terms of infrastructure but too, save on the cost of developing a product which would have a perfect market-fit.
4. Faster and Better Decision-Making
The high-speed in-memory analytics and Hadoop in combination with the ability for analyzing the new data sources, businesses can analyze the information almost instantly. This comes out to be a big time-saver as you can now deliver more efficiently and manage your deadlines with ease.
5. New Products/Services
With the power of Data Analytics, the needs and satisfaction of the customers are met in a better way. This helps one to make sure that the product/service aligns with the values of the target audience.
6. Industry Knowledge
Industry knowledge can be comprehended and it can show how a business can run in the near future. Also, it can tell you what kind of economy is already available for business expansion purposes. This, not only opens new avenues for businesses to grow but too, helps build a strong ecosystem around the brand.
7. Witnessing the Opportunities
Though the economy is changing and the businesses want to keep pace with the trends, one important thing that most of the organizations aim for is profit-making. Here, Data Analytics offers refined sets of data that can help in observing the opportunities to avail.
The importance of Data Analytics is truly changing the world. Whether it is the sports, the business field, or just the day-to-day activities of human life, data analytics have changed the way people used to act. It now, not plays a major role in business, but too, is used in developing artificial intelligence, track diseases, understand consumer behavior, and mark the weaknesses of the opponent contenders in sports or politics. This is the new age of data and it has unlimited potential. Lastly, don’t take things too seriously with data analytics as you can easily start data analysis with excel in your initial steps… So, start exploring and taking charge!