What is the difference between great ideas and great successes? Great success also requires great strategies. Be it a business venture or research and development or mere analysis, the use of available data to determine the best way of achieving a goal is crucial to the success of any venture. Any points in course of a venture can be reached in infinitely possible ways. However, not all of them are simply achieved or are cost-efficient. Data analytics deals with the optimization of path depending on information obtained from sources of available data. Here are a few ways in which data analytics commonly influence decision making and productivity of corporate firms.
- Optimizing for Markets
The demand of a product or service is essential to estimate the profitability of a business venture. Furthermore, most products or services are usually commoner in one point or community as compared to another, more popular among one age group or another, and so on. If it is spotted beforehand who exactly your specific customer is, it is possible to design the product exclusively to cater to them, leading to greater success. A data analytics consultancy would call this kind of evaluation customer segmentation. It is done by analysing any number of details from records of customer purchases, Google search results, known users of similar products, data which is collected from third party sources, and so on.
- Web Analytics
This branch of data analysis deals with recording the internet usage statistics from specific IP addresses. The search keywords used by a user operating from a specific IP address is very crucial to determining the kind of products or services that they like to know more about or are interested in. This lets corporate firms suggest them advertisements that are tailored to their taste, making them more likely to make a purchase. At the moment, one of the most powerful sources of data for web analytics is Google Analytics. Proper analysis of user web statistics allows a business to flourish.
- Analysis of Risk
One of the most important functions of detailed data analysis is the analysis of risk. With every business venture comes the risk of failure. Once again, a data analytics consultancy can use data concerning the weak points in a system, such as the presence of competitors, future developments extrapolated from the known past, etc. to determine the chances of something failing. This gives the firm a good idea of their chances of succeeding in a specific direction and often leads to savings of millions of dollars.
- Industry Specific Analytics
Many forms of data analytics are specific to industries. For example, banks that lend loans like to do analyses of portfolios of people who apply for loans to estimate the likelihood of them failing to repay an installment. Software firms often have significant amounts of data concerning the ways in which the software that they produce is used, and this information is utilised to improve the software to its users.