Data Analytics is gaining popularity as more businesses adopt the technology to aid better decision-making. Whether you own a small brick-and-mortar store or a huge corporation, your business will not survive without it.
If you own a retail store, you will want to stock up more on hot items that sell more and minimize inventory of those that do not sell quickly. Having too much inventory that does not get converted into sales quickly, can cost you.
You want to avoid storage costs and opportunity loss. You will want to gain profit fast and be able to deliver on the demands of your customers.
And so, you look into the sales report. You interpret the numbers that the sales report gives you.
You try to identify your hottest items, how much the profit is, how much you can reinvest in new inventory, and how much you can expect to gain in the coming weeks.
There are a lot of things that the data will tell you and how you use it will determine your next course of action.
This is data analytics in action. This example is a lot simpler than what larger companies probably do with their bigger data sets. But this proves that this technology is useful for businesses, big or small.
Investing in data analytics means investing in the future of your company. Based on a recent report, did you know that its compound annual growth rate is pegged at 12.3% from last year to 2027?
This just shows how this technology is being received by business owners. There is a big demand for it and here are some of the reasons why:
Data Analytics can diagnose problems in your system.
Manufacturing firms have set targets for output, raw material input, cycle time, headcount, equipment efficiency, cost, profit, and so much more. And if those targets are not achieved, they use this technology to investigate why.
For example, if you have delays in your shipment because of a quality defect in your process, your data analytics will be able to show it and point you in the direction of the problem.
With this technology, you can know how to solve problems no matter the industry you are in. You can even use it to predict potential problems before they blow out of proportion.
Data Analytics can help you spot opportunities for growth.
It is not only for spotting abnormalities or defects. With it, you can spot trends, outliers, and other patterns that can help you propel your business further.
You can even use it to spy on your competitors. See how their business compares with yours and look for opportunities in your stats.
Is there an unsaturated market you can sell your products to? Is there potential with a certain niche that you have not delved into yet? This technology will show you these, and more.
Data Analytics goes together with other up-and-coming technologies.
Internet of things (IoT), artificial intelligence (AI), and machine learning all need data analytics to fully function, especially, those requiring automation.
Take a self-driving car as an example. Its development must have needed a significant amount of data records to teach the car how to stay in its lane and how to detect other cars.
Final Thoughts
Data is everywhere and it could mean many things. But without analytics, it is useless.
This technology could drive growth in your business if you know how to use it to your advantage.
