Data exists all around us. Once this data is collected, organized and sifted, then it becomes possible to start gaining insights and meaning from this data. As the size of data sets began to increase to unimaginable sizes, specialized computer algorithms and data analysis tools could be used to see trends that could not be seen prior to the age of this Big Data phenomenon. Even companies like Google have become integral with their Google Bigquery approach to handling reduced infrastructure, cloud-based data analytics. Once modern businesses realized what these data repositories and the analytics involved were all about, they began to understand that they had a gold mine at their fingertips. From here the race was on to see who could do and achieve more with the analytics being used to identify useful insights from the available data. This advancement has only made competition in the open markets more fierce than before. The following are a few ways companies are utilizing the power of data analytics to get ahead of the market and the competition.
The richer the data you are mining for insights, the greater the ability to make accurate predictions. Predictive analytics uses historic data to identify and derive patterns through which businesses can leverage some kind of market advantage. This could involve anything from predicting the next hit product going viral to tracking profiled criminal activity. The important thing is that analysis done on large enough data sets will inevitably expose where the lucrative market trends are happening and how long these trends will last. A savvy business owner need only position their business in the path of these trends to capitalize on all the profit generating potential that their predictive analytics can provide.
Better Business Decisions
Data resides at the core of any meaningful business decision. Without information to guide a business to making accurate decisions that will benefit how that business operates within and profits from the market, such business decisions would be little more than blindly stabbing in the dark hoping to get lucky. For this reason, data analysis professionals must leverage key analytics to ensure that business intelligence is pushing a company towards making decisions that lead to successful outcomes. When the analysis turns up certain well established patterns in the data, businesses understand the implications of the patterns they are observing. These patterns telegraph insights into what the market is doing so that companies can rethink strategies and implement the necessary changes to generate further profits.
Another area that involves utilizing the power of data analytics arises in the area of offering value to consumers. To become more than an ordinary vendor, such as a partner that shares content or items of relevant value with consumers, this requires the necessary data analysis to figure out which consumers will appreciate which value-based offerings. The unfortunate side of this part of the marketing scene is that new regulations involving the handling of user privacy matters will hugely impact the nature of the analysis being done on consumers. This will, in turn, ultimately hinder a company’s ability to derive relevant value incentives to reach out with when dealing with online customers. Companies may have to resort to alternative approaches to obtaining these insights if they want to continue to be able to offer value incentives to their segment of the consumer base.
Today, businesses live and breathe in the realm of data analytics. The search for that next viral trend can be a path to sheer profit for companies that have the raw power and analytical talent to make predictions that model how the market is moving before hand. In many cases, computer systems and algorithms are getting good enough to orient these predictive models in near real time. This gives companies with access to these types of models a huge advantage over companies that are still not harnessing the power of data analytics and operating blind by comparison.