Business intelligence (BI) is the only way to make data-driven decisions and ensure the long-term stability of your organization. By definition, BI represents an umbrella term that includes applications, infrastructure, tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance.
It is obviously a complex concept which encompasses different analytical methodologies, but we want to discuss descriptive, diagnostic, predictive, and prescriptive analytics in particular.
These four models can help you optimize business performance and take your organization to the whole new level, so you definitely want to learn more about the ways to incorporate analytics into your company. Our post will show you 9 practical ways to achieve this.
Data Analytics Explained
Before we show you the practical ways to utilize data intelligence, it is necessary to describe the four methods we mentioned above.
Descriptive analytics is the early stage of information processing in which you collect historical data, filter, and prepare it for the next phase of research. The biggest advantage of descriptive analytics is that it often detects important variables used in future examinations.
Larry Longwell, a business strategist at Careers Booster, explains the background of diagnostic analytics: “The method is designed with a purpose to answer only one question: Why did something happen? Using this type of business intelligence, you can understand the cause that lies behind a certain phenomenon.”
Just like the name suggests, predictive analytics uses complex statistical techniques to make predictions based on the existing or historical facts and figures. The last type is prescriptive analytics, a model that should give you real-time insights and help you to choose the best solution in any given situation.
If you properly combine all four of these models, you can improve the functioning of your organization and quickly rise head and shoulders above competitors.
9 Ways to Utilize Data Intelligence
Data intelligence is so comprehensive that you can find a plethora of ways to use it in your everyday business. However, we want to help you to narrow down the options and understand the most common practices in this field. For this reason, we selected nine ways to utilize business intelligence:
- Create a 360-degree customer view – All organizations want to learn everything there is to know about their customers. Using contemporary analytics, you can discover even the smallest details ranging from demographic features to historical interactions with your company.
- Gain market insights – Data analytics is so powerful that it can keep feeding you with real-time insights day after day. Combining valuable information coming from your sales, customer service, and marketing teams, you will be able to determine the best timing for future activities such as product releases or new marketing campaigns.
- Detect new market opportunities – Social platforms, emails, websites, and other communication channels represent quality sources of information from which you can detect new market opportunities. This can also help you to design ancillary products or to discover a brand new target group.
- Customize offers – The Internet is flooded with user-related information, so you can exploit it to create tailored offers that perfectly match the needs of each and every prospect. This is extremely important because 62% of consumers expect companies to send personalized offers or discounts based on items they’ve already purchased.
- Enhance customer service – This benefit of analytics goes hand in hand with the previous one. With descriptive analytics at your disposal, you can easily figure out the requirements of your customers and solve their problems before they even ask you! This is the perfect tactic to create a huge base of loyal buyers who can also become your brand advocates very easily.
- Improve products and services – Data analytics is not strictly customer-centric. On the contrary, you can also use it to analyze products or services, detect pain points, and eliminate features that your customers don’t like. These will rarely ever be big issues, but sometimes even the smallest details can make a huge difference in the eyes of your customers.
- Eliminate safety threats – Big data allowed companies – financial organizations in particular – the chance to improve security systems and eliminate a lot of previously unnoticed risks and safety threats. It doesn’t make online businesses 100% safe, but it definitely cuts fraudulent activities to the bare minimum by detecting suspicious behavior and unusual requests or transactions on time.
- Workflow optimization – HR departments use the state of the art analytics to monitor employee behavior and understand how they work and spend their time throughout the day. Doing so, they can optimize workflow and make the entire organization more productive because all members of the team will be able to focus on things they do best and thus reduce time-waste. Besides that, HR managers can analyze historical data to improve candidate selection, recruiting, onboarding, compensation packages, lifelong learning, and retention.
- Analyze competitors – Competitor research is the last item on our list, but certainly not the least important. Adding new analytical models to your organization, you can keep track of the biggest competitors and see how they respond to market changes over time. Data analytics can follow all sorts of indicators in real-time, including prices, products, online reviews, marketing initiatives, etc. That way, you can predict their future moves and strategic plans, which is great if you want to stay one step ahead and outdo your rivals.
Data analytics is the cornerstone of the contemporary business. It represents the only way to make accurate and data-driven decisions, thus helping you to maintain the highest level of business performance in the long run.
Our post explained to you 9 ways to incorporate business intelligence into your organization. Remember these tips and test them as soon as you have the chance because it could turn out to be a real game-changer for your business.
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