In today’s ultra-competitive business landscape, companies must take advantage of every opportunity to differentiate themselves from the competition. Ideally, a company wants to optimize operations, control spending, and deliver products or services that exceed customer expectations. Failure to meet these goals may result in an inability to attract and retain customers and an underperforming business.
Leveraging data analytics is a valid strategy for companies to address the need to be competitive, meet evolving customer demands, and succeed in their market sector. This article discusses the benefits of engaging in data analytics, the most effective methods of implementing data analytics, and how VAST can help your company choose the best solution for your unique requirements and objectives.
What is Data Analytics?
Data analytics involves the examination, cleaning, transformation, and modeling of data to identify information that is useful to an organization. Analytics enables a company to uncover insights that affect the business but may not be readily apparent. These insights can inform decision-making and result in a substantial competitive edge when used effectively.
Data analytics encompasses multiple steps and procedures.
- Data collection – Data is collected from multiple internal and external sources including information streams from social media platforms and Internet of Things (IoT) systems.
- Data cleaning – The information needs to be cleaned to address errors and remove duplicates to ensure data accuracy.
- Data transformation – Data is consolidated and enhanced to create a unified and useable dataset.
- Data analysis – Data is then analyzed with a different focus based on how the information will be used. An organization may perform:
- Descriptive analytics to evaluate and understand past performance;
- Diagnostic analytics to determine the causes of previous outcomes;
- Predictive analytics to forecast future trends;
- Prescriptive analytics to optimize future outcomes.
- Data visualization – Data is used as raw material for visualization tools such as graphs and dashboards which make the information easily accessible to stakeholders.
- Interpreting the results – Insights are drawn from the results and used to facilitate effective decision-making.
- Taking action – Decision-makers act on the insights to address issues and optimize processes.
The Benefits of Data Analytics
Companies stand to enjoy multiple benefits from the productive use of data analytics.
Better decision-making – Making better decisions is one of the primary benefits of data analytics. Decision-makers can act from a position of strength, using derived insights rather than intuition. Better decisions can be made that help grow the business and mitigate potential threats.
Enhanced operations efficiency – Based on the information gleaned from analytics, companies can modify processes and procedures to promote greater operational efficiency. These modifications can assist in driving competitiveness and optimizing the company’s budget.
Understanding customer expectations – Analytics can uncover trends and patterns in customer behavior and expectations that are essential for maintaining and growing the business. More effective marketing campaigns can be developed using insights from analytics. Prescriptive analytics may be used to create personalized services that foster greater customer satisfaction.
Optimized financial management – Financial management and forecasting can be improved via analytics. Analytics is crucial in accurate forecasting and financial planning. Identifying operational inefficiencies with diagnostic analytics can result in significant cost savings and increase a company’s profitability.
Data-driven strategic planning – Long-term strategic planning is supported by analytics to provide insights into market trends and conditions. Analytic applications may enable companies to model alternate business scenarios so they are better prepared for the potential outcomes.
Gaining a competitive advantage – Combining the benefits outlined above gives a company a distinct competitive advantage over less insightful rivals. Opportunities and threats can be identified by analyzing industry trends and competitor activities. The ability to quickly act on emerging trends can be instrumental in promoting company growth.
How Companies Can Implement Data Analytics Platforms
Data analytics applications require an infrastructure that supports substantial computing power integrated with cutting-edge technologies such as artificial intelligence (AI) and machine learning (ML). Implementing and maintaining this type of computing environment requires substantial financial and technical resources. Companies may be hindered by the expense involved in creating an appropriate environment for data analytics.
However, there is an easier way to take advantage of data analytics. Cloud service providers (CSPs) like AWS, Microsoft, and Google offer data analytic applications and platforms available to small and medium-sized businesses (SMBs). These cloud offerings level the playing field by enabling any company to reap the benefits of data analytics.
Companies considering adopting a cloud data analytics solution should adhere to the following best practices.
- Set clear objectives for implementing data analytics such as optimizing operations or improving customer satisfaction.
- Ensure that collected data is accurate and relevant to your goals.
- Select the right tools and platforms to fit your requirements. Make sure you can integrate the tools with existing systems.
- Automate data collection and strive to analyze data in real time to support timely decisions.
- Use descriptive, diagnostic, predictive, and prescriptive analytics to address various issues with the company and plan for a successful future.
- Create visualizations and dashboards to clearly present information to all stakeholders so it can be used productively.
- Take action on identified insights to address issues or take advantage of business opportunities.
Cloud providers should be selected based on their ability to meet a company’s business objectives. That’s where VAST comes in.
Leverage VAST’s Cloud Experience for Effective Data Analytics
VAST has extensive experience with public cloud vendors offering data analytics solutions for your business. We have strategic partnerships with the major CSPs that enable us to find a solution that aligns with your business goals. We offer support regardless of which cloud you adopt for data analytics.
- AWS – Our managed AWS services help you get the most out of the wide variety of the CSP’s offerings.
- Azure – We can help customers implement Azure cloud solutions and manage them so they can focus on core business activities.
- Google Cloud – Our experts help you navigate the complexities of the cloud and obtain the maximum value from data analytics solutions.
Get in touch with our team and start taking advantage of the benefits available from data analytics in the cloud.
