Almost two-thirds of global companies say they can’t analyze all the data they collect. This issue has grown alongside technology, which makes gathering data easier than ever.
Given this, it’s little wonder the data analytics market is expected to keep growing. Business leaders recognize the value of the data they’re collecting. They’re investing more in making sure they use it in an optimal way.
As a business owner, you may be wondering about big data and its business impacts. Understanding how this information can help your business is vital for your operations.
Why You Must Collect Data
If you gather more data than you can analyze, your first reaction might be to stop collecting so much.
Companies sometimes gather information that isn’t useful, but the problem is its analysis. Data can be very valuable if you have the resources to analyze its meaning.
But data alone can’t tell you very much. Analysis yields insights into behaviors and patterns. Data analysis could show you trends in investment for your industry, as well as the biggest sources of investment funding.
These patterns only emerge when you process the data. You can’t analyze the information you don’t have, though. Data collection is the first step in getting better insights.
That said, there are ways to rationalize the data you collect. Information about how much others in your industry are investing in new technology might affect your own budgeting and strategy.
Other information, such as the square footage of your competitors’ offices, may not be very useful. Unless you believe the size of the office directly impacts a company’s growth, you might want to leave this data out of your collection efforts.
Examining Big Data and Its Business Impacts
Once you have the data you need, you can begin to process and analyze it. This is the step that yields business impacts.
Insights from data affect companies in two major ways. The first is that data allows for better business decision-making. If you see a pattern emerging, you can adjust your strategy to reduce the risks or take advantage of an opportunity.
A sales example makes this clear. Suppose the average business owner spends €20 on a domain name for their website. When they’re given a €10 coupon for spending €50, they buy additional domains for an average order of €60.
Knowing this, you’ll probably decide to run a similar promotion or hand out more coupons.
Big data insights can also tell you what to focus on in your business. If you have several choices for upgrading your IT operations, you may not know what to do first. Which option is worth your money?
Crunching the numbers can tell you what’s costing you the most money or what path would save the most money. Suddenly, the choice between upgrading your network or investing in security is clear.
The Benefits of Big Data
Your business data can help streamline your operations at all levels. Some of the benefits of data analysis include:
- Reducing operational costs
- Improving efficiency
- Reducing risks
- Increasing productivity
- Improving compliance
- Increasing revenue
These benefits stem from your ability to prioritize and make more informed decisions. In turn, this can contribute to company growth at all levels.
Let’s look at the coupon example again. This promotion obviously increases revenue. It may also increase the number of sales by giving customers an incentive to buy something.
It also helps your sales and marketing teams work more efficiently. They know this tactic works, so they spend more time on an initiative that has proven results. They spend less time on less effective tactics, which improves efficiency.
In turn, you’ll increase revenue and save money. You can now take those extra funds and put them toward your IT budget. Surveys show your customers value security over website speed, so you focus on improving security.
With better security, your customers feel more confident buying from you. They buy more, and they buy more often.
It’s easy to see how growth becomes self-perpetuating in this situation. It’s all thanks to the insights provided by data.
Transforming the Business
Big data doesn’t have to focus on the here and now either. It can also inform your vision for the business.
As you analyze data, you may discover hidden opportunities. You may uncover customer demand for a product or service that doesn’t exist. Can you fill that need?
Operational efficiency and improved productivity also contribute to innovation. Your employees may be more creative. Your team may have both the time and money to devote to exploring new opportunities and ideas.
Innovation can help you grow the business as well. It can establish your brand as a market leader. It can also give you a competitive edge in delivering solutions your customers want.
Data can also help you transform your business from the inside. HR analysis can provide valuable insights into your corporate culture. With this information, you can transform the business to support creative and driven people.
Big data may also show you how to steer the business. As mentioned, you may discover new opportunities.
You may dominate a niche market that you didn’t know existed. Maybe your products are popular in the international market.
Uncovering these sorts of opportunities may help you rethink the business. Who do you serve and what do you offer? A new opportunity may convince you to take the business in a new direction and set you on a course for growth.
Get the Right Analysis
Big data and it’s business impacts are invaluable. It’s little wonder business leaders are investing in data analysis. This market is expected to reach $275 billion by 2023.
What you can do with your data depends on two key factors. First, you need quality data. Next, you need the right solution to deliver insightful analysis.
If you need data to power your business, we have the solutions you need. Get in touch with our experts today to find the solution that works for your business. More insightful business decisions are just a step away!