Enterprises and companies, across the globe, are witnessing increased complexity and market volatility. Business functions are successfully reciprocating through data-driven analytics and insights to manage this increasing uncertainty, while better understanding their organizations’ customer base to grow their businesses. The move towards data-driven insights is mainly due to continued business reliance on technology and automation across. A recent survey by Dun & Bradstreet and Forbes Insights, 'Analytics Accelerates Into the Mainstream' reveals some interesting facts:
- 19% enterprises use only basic data models and regressions.
- 23% of analytics professionals are still using spreadsheets as their primary tool for data analysis.
- 27% of analytics professionals surveyed; opined this skills gap to be a major impediment in their data initiatives.
- 38% of respondents strongly felt that business leaders took full advantage of their analytics initiatives.
- 38% of those surveyed say their companies, C-suite, and senior leadership need to do more to drive the cultural change needed for better utilization of analytics
- 55% of those surveyed said that third-party analytics partners execute work of higher quality than analytics work completed in-house.
- 60% of companies surveyed, use third parties to support organizational bandwidth while 55% are outsourcing some or all of their analytics needs.
Senior executives have realized the value of analytics, moving from IT and finance to the majority of business functions; and are making considerable investments in technology, people, and processes.
Growth in digital technologies has empowered all, to analyze more data. Advanced analytics skills and implementation of best practices; has fueled the enterprise’s appetite for better data. It has become the primary enabler to derive truth and meaning from data that drives the business growth.
It would not be an exaggeration to say that it has become compulsory for companies and enterprises to extend their data analytics investments. Media has been gaga with impressively projected and actual CAGR reports on how data-driven insights have and can help organizations resolve their business problems to drive revenue and growth.
But why so much of analytics is discussed everywhere? Businesses operated even before the advent of data analytics; then why such a hype? Let’s have a look at the big picture. Enlisted are some of the key factors that have led to the increasing demand for data analytics:
Companies, to survive, need single customer view
Companies today need the ability to track customers and their communications across every channel, and single customer view – SCV empowers them with it. Its obvious benefits include improved customer service levels, better customer retention, and higher conversion rates. SCV also improves overall customer lifetime value – CLV, as is claimed. Organizationally, it leads to enhanced communication amongst conservative separate teams, for a more cooperative approach towards customer service.
SCV is all about pulling the data, for deriving insights, from various channels into one place or on a single platform. This data is then analyzed by data scientists or decision analysts, to building a comprehensive and personalized picture of the customer and their entire journey. It will help the business to improve their future sales and make improvements to future customer interactions.
Ever increasing customer demands
Markets have reached a stage where connected customers need personalized services, based on their digital journey and personal preferences, and on hand held devices, most of the times. Google’s context-aware search engine results, AI powered personal assistants from Google and Apple, and Amazon’s recommendation engine; make today’s connected customers expect the same level of customer experience across all brands they interact with. Hollywood movies, one of the best examples where the concept of analyzing customer demands was leveraged smartly, by transforming audience feelings/sentiments into invaluable insights.
Companies are becoming digital eCommerce players
It should not be a surprise to know that every company is becoming a technology company. Yes, that’s true. Observe how Dominos is turning into a digital eCommerce player from a traditional quick service restaurant with help of Domino’s Anyware. As an integral part of this initiative, Dominos collected data from more than 85K customer touch points, to derive insights which can drive sales, revenue and growth. This turned the tables for Dominos, as now they are processing more than 55% of their orders – online.
Humongous data influx
Ideally, this should have been the first point, but then there is a lot that has already been discussed regarding the 5 quintillion bytes of data that is generated from digital footprints left on social media platforms, IoT sensors, wearables, transactions etc.
The shocking aspect is that only 1% or 2% of this total data collected is analyzed. All the innovation and digitization and insights that we are witnessing today, driven by analytics, are the result of analysis done on just 1% of the data collected – globally.
Instincts-driven decisions Vs insight-driven decisions, the game changers
Ever evolving customer expectations compel enterprises to go digital & replace instincts-driven decisions with insight-driven decisions. Data solution providers have changed the entire scenario. They transform data into useful insights, as an assortment of collecting, cleansing, classifying, validating, modeling and visualizing. A few years back, they were looked down as providers of mere data entry services. As against which they have proved their worth by giving enterprises and start-ups solutions for data and analytics, which until recent past; was possible only for firms with deep pockets.