Expert opinions, TECHNOLOGY

Business analytics: what data help you make strategic decisions

We live in an era where digital technology is changing the world, creating huge amounts of data every second. This information can be a valuable asset to the business, helping to understand customer needs, improve workflows, and bring innovation. However, competent analysis is needed to unlock its potential. Business intelligence is a powerful tool that transforms simple data into useful insights to help you make strategic decisions.

Data sources for business Intelligence and data collection technology

In a world where every click, every transaction and customer interaction leaves a digital footprint, it’s important to understand where and how we get data for analytics. This data is the basis for strategic planning and informed business decision-making.

There are many data sources, and they can be both internal and external:

  • The company’s internal systems monitor closely customer interactions, operational processes within ERP systems, as well as information from other internal databases.
  • Social networks and online platforms provide information about user behavior, preferences, feedback and brand interactions.
  • Internet of Things (IoT) technology generates vast amounts of data covering product usage, hardware health, and consumer behavior.
  • Open data and information from partners: this includes public databases, statistics, as well as supplier data – all these arrays are included in the overall analysis of information.

Data collection is a comprehensive task that requires the use of the right strategy and advanced technologies; data collection includes:

  • Automated data collection, which is carried out using software capable of automatically extracting information from various sources. This process includes web scraping, API integration, and automated monitoring systems.
  • Cloud solutions that play a key role in providing flexibility and scalability for storage and processing. They enable businesses to adapt easily to changing volumes of information by providing effective data management tools.
  • Big Data technologies used to work with huge amounts of information. Specialized tools such as Hadoop or Spark enable efficient processing and analysis of large amounts of data, enabling companies to work efficiently with large-scale information flows.

Using a variety of data sources and advanced data collection technologies allows companies to get a complete picture of their business, considering its numerous aspects. This is the first and critical step in the business intelligence process that sets the stage for further analysis and strategic decision-making.

Data systematization and processing: the role of visualization

After data collection, the stage of their systematization and processing begins. This is another important step that turns raw data into information ready for analysis and use for decision-making. At this stage, data visualization plays a key role, contributing to a better interpretation of information.

Data systematization includes the following processes:

  • Data cleanup. Deleting erroneous, incomplete, or inappropriate data improves the accuracy of the analysis.
  • Data Integration. Combining data from multiple sources into a single database makes analysis easier and more accessible.
  • Data structuring. Converting data into a structured format facilitates processing and analysis.

Data visualization is not limited to improving the appearance of information. This process plays a key role in understanding complex data, detecting trends, patterns and anomalies that may go unnoticed in the form of tables or reports.

Visualization tools: Charts, graphs, maps, and interactive dashboards help transform complex datasets into an easy-to-understand, easy-to-read form.

Interactivity: Modern visualization tools offer interactive capabilities that allow users to explore data more deeply, such as zooming in on graphs or viewing additional details on demand.

Data-driven decision-making: Visualizing data simplifies data analysis and helps you make informed decisions based on real-world facts.

Data systematization and visualization are fundamental steps in the business intelligence process. They not just facilitate understanding of large amounts of information, but also contribute to more efficient and accurate decision-making. Visualization makes data accessible and understandable, which is key to successful management and business development in today’s world.

Business Intelligence problems, challenges, and trends

Business analytics faces a number of problems and challenges that drive development trends in this area. Coverage of these aspects provides a better understanding of how companies can adapt and use new technologies to overcome emerging challenges.

Every year volumes of data grow exponential that creates difficulties in their storage, processing and the analysis. To guarantee high quality of data, you should provide the accuracy, completeness and relevance of information that is a difficult task. With toughening of the legislation, the companies have to be especially attentive to protection of personal data and their confidentiality. Collecting and combination of data from various sources represents a difficult task because of a variety of formats and structures of data.

Responding to these difficulties, technologies of analytics of business data develop rapidly:

  • The AI and ML become key technologies in the analysis of big data, predictive analytics and process automation of data processing.
  • Cloud-based decisions provide the flexibility and scalability necessary for work with big data and offer improved aids of security and observance of regulatory requirements.
  • The expanded analytics and visualization allow understanding and interpreting data better, making them more available for decision-making.
  • Automation and self-service in analytics allow users without special knowledge in the field of data to make the analysis and to generate reports themselves.

Problems and calls in the field of business analytics are closely connected with technological innovations and trends. Understanding of it and adaptation to these aspects gives to the companies the chance to maintain the competitiveness, effectively applying the potential of data for development and implementation of the weighed strategic decisions.

Examples of successful business application of analytics

Data analytics has already proven its value in a variety of business industries, helping companies make informed decisions, improve efficiency, and find new opportunities for growth. Consider some real-life examples from practice.

Ozon uses data analytics to research customer behavior, which allows to offer personalized product recommendations. Machine learning systems analyze purchase history, searches and product reviews to offer customers the items they are most likely to be interested in.

Yandex.Music uses analytics to understand the preferences of its subscribers and optimize its content portfolio. Analysis of listening data helps the company determine which tracks and songs are most popular and what content should be posted in the future.

Starbucks uses sophisticated ML algorithms to determine the optimal locations to open new coffee shops, given factors such as demographics, population density and consumer habits. The company also uses purchase data to provide personalized offers and discounts through its mobile app.

These examples are just the tip of the iceberg in the world of opportunities that business analytics opens up. It is important to understand that data analytics is not just a tool; it is a data-driven decision-making culture. It requires investment in technology, personnel training and the development of relevant processes.

Efficient use of data can lead to significant improvements in operations, company risk management, strategic planning and customer service. Therefore, the key to success in the modern business world is not just data collection, but its correct interpretation and application to make informed decisions.

By Arsen Babayan, CEO of Corporate Analytics Systems, co-founder of Sweepnet digital environment

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