19 Dec · 5 min read
There is no denying that billions of bytes of data are generated each day. The vast evolution of technology has resulted in more companies investing in data analytics than ever before. If we look at the statistics in the MarketandMarkets Research Report, it claims that the Global Predictive Analytics Market is expected to grow from 10.5 billion USD in 2021 to 28.1 billion USD by 2026, with a CAGR of 21.7% during the forecast period. There are various factors responsible for these fascinating numbers. One of them is the increasing use of artificial intelligence and machine learning (ML) in the tech industry as more new products and services are introduced.
With the passing of time, businesses have understood the potential of data analytics to unlock a competitive advantage and make their customer journey a success. MicroStrategy Reports states that 90% of participating businesses agreed to the fact that both data and analytics are essential to the organization’s digital transformation objectives.
Let us understand the benefits of data analytics in the tech industry and how they can be useful for businesses to drive positive outcomes from data:
1) Informed decision-making
Data analytics enables businesses to make more informed decisions and achieve better results. Rather than solely relying on gut feelings, thorough analysis of data can assist companies in planning everything in a more precise manner. This includes using the data insights to plan marketing campaigns, develop products, and a lot more.
Predictive analytics offers you deep clarity on your customers' behaviour and then further builds your product based on their requirements. In fact, new data analytics tools make it easier for organizations to collect and analyze the data that leads to company profitability and growth.
2) Innovate Products
Living in a world that demands continuous innovation and creativity, the use of data analytics is the solution to achieving this step. Data analytics can help you keep track of what kind of products or services are required by the customers. It will enable you to update existing products while innovating new ones.
To stay on the competitive edge, you need to create products that resonate with your consumer base while taking inspiration from what your competitors are doing. A huge amount of gathered data can be pulled together to develop the next innovative product.
3) Identify Potential Risks
Businesses are full of potential risks. It can be anything, such as customer theft, data leakage, legal liabilities, and so on. To eliminate these risks, you need a strong risk mitigation plan in hand.
Data analytics is used to assess risks and determine the root cause of their occurrence. Its tools can prove helpful in the development of optimal risk management methods and various other mechanisms required to predict an uncertain future. However, achieving this step will also protect your company from major financial losses. and recurrent problems.
4) Improved Customer Experience
This is one of the most important benefits associated with data analytics. Data analytics gives you a brief understanding of who your target audience is, what they buy, their mode of engagement, and so on. It is necessary for every company to practise effective management and interpretation of data before making any important business decisions.
According to McKinsey & Company, predictive analytics is one of the booming solutions for a great and improved customer experience. The thorough analysis of data can enable professionals in various positions to predict market changes and identify the bottlenecks involved. After all, at the end of the day, whatever product or service you are building is going to be analyzed by customers as per their requirements. Make sure it’s all worth their use.
5) Simplify Business Workflows
Data analytics helps businesses streamline important workflows by analyzing and gathering data to identify bottlenecks. These days, businesses are using data analytics to improve business management by helping leaders and stakeholders access current workflows and refine them from time to time. Also, business owners might speed up all their digital initiatives by switching from frustrating manual workflows to streamlined business operations through effective data analysis.
6) Enhanced Security
With huge chunks of data, comes the responsibility of securing the data for businesses. This is where the use of data analytics will come in handy. Business owners are on a continuous lookout for ways to mitigate risks and adopt new regulatory standards. Companies visualize and interpret the data to find the reasons behind data breaches.
One of the reports by Ernst & Young shows us the importance of embedding data analytics into our risk management process to identify emerging risk trends. Right from identification to assessment to mitigation to monitoring, empowering analytics into the entire process is the key to the long-term success of the organization. Also, big businesses that access data from a third-party vendor must protect their resources and clients from falling into the trap of any kind of risk.
With the growing usage of data, data analytics is becoming the most important part of the tech industry. It is good to witness the increasing number of data-driven organizations. Such organizations are adopting new tools to understand their customers, automate processes, and streamline complex business operations. With a brief analysis of data, companies can pave the way for themselves to stay ahead in the competitive world and leverage the long-term growth of the organization. Adopting data analytics can result in the above-mentioned benefits of gathering real-time data insights to identify more opportunities and emerging risks.