Why is Data Important for your Business?

Gathering data to analyse an organisation and its customers has become an integral part of running a business. Some of the biggest companies in the world based on market value are predominantly tech firms that have historically harvested and analysed data for business use, however advances in technology have made it a relatively straightforward task for companies of all sizes and sectors to start doing the same. From finance to insurance, media and hospitality, companies are using data strategically to understand their users, customers, and market sector better.

Data has become so readily available to business leaders that there is already a danger of there being so much of it produced that it can be difficult for many to know what to analyse and to extract anything worthwhile – something we recently blogged about. The redress the balance and shine a positive light on the importance of data, there are some fundamental broad areas where the insights derived from data can truly help an organisation gain a competitive edge over their rivals: processes; performance; decision making; and customers.

Improving processes

Analysing data can highlight weaknesses in business processes, enabling an organisation to reduce time, resources, or waste in any single process. Data affords a top-down view that can flag obstacles or breakdowns in processes, or aid streamlining with high functioning processes. From production to procurement, any stage of a journey that can deliver a product or service to a customer or client faster and cheaper, is a competitive advantage and will improve an organisation’s bottom line.

Understanding and mapping performance

Mapping the performance of teams, individuals and suppliers is vital as part of strategic decision making. Knowing how each element of a business is performing against targets and goals is one of the most important insights gained from data, particularly when it comes to the workforce and its future retention and recruitment.

Decision making

Data provides business leaders with real time intelligence to help them make more grounded market predictions in their space. Taking assumptions or gut feelings out of the equation, leaders can make lower-risk decisions based on facts, provided by the data. Data analysts will provide more accurate forecasts and hypotheses for leaders to base future company strategy on.

Understanding customers

With demographic, geographic, and behavioural data, businesses are able to gain a better picture of who their customers are and most importantly what they need next. Analysing trends, pain points, and the client or consumer experience and journey, puts an organisation in prime position to pivot towards or double down on market changes. Data is the true voice of the customer and it’s essential that businesses are listening. If Pareto’s Principle (that 80% of revenue comes from 20% of customers) is true, data will detect the indispensable 20%.

To take full advantage of data and analytics, you need to know how to get the most value from them, how to embrace the technology and how to manage its results. If you would like to know more about how to maximise the insights gained from your data or need help securing the data analytics talent that can take your organisation forward, contact us today.

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