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Why Are Data And Analytics Key to Digital Transformation?

Posted by Errin O'Connor on Jul, 22, 2021 06:07

Data and analytics are both key factors towards the successful digital transformation of the company. Businesses need digital transformation to successfully gain maximum benefits out of their business transactions and operations. Without digital transformation, a business will find it difficult to cope up with the needs and desires of its customers.  

But how do business owners transform their business into a successful one? The answer is so simple. It is only a matter of adapting to new changes or innovations which are better for their business. With the advent of new technologies, devices, software, and different types of business applications, many customers want to make their transactions easier. As a result, they also expect these changes to be adopted by most businesses. This is one reason among many why organizations are looking for Digital Transformation Consulting.

If your business does not bother to adapt these innovations in the market, customers will likely transfer to another agency or organization, giving you a disadvantage to your business. Sooner or later, you will then realize that your business is gradually declining because of a low productivity level and lack of customer support or awareness.

What is Data Analytics? 

Data analytics are sometimes utilized interchangeably with data analysis. However, in a broader sense, these two terms are important in digital transformation, as businesses aim for success in their business industry. Data analysis is just a data analytics’ subset, while data analytics is concerned with scrutinizing, cleansing, modifying, and modeling the data to obtain conclusions. It’s also a discipline that focuses on extracting insights from the gathered data. Moreover, data analytics used tools and various techniques or strategies in performing data analysis.  

Data and analytics are said to be important to every business of the company in making decisions using predictive analytics and performing actions that would be beneficial to the whole organization. Of course, any business organization needs to act accordingly based on the data that the management gathered. Without reliable data and analytics, organizations cannot simply think of the innovations, strategies, and effective approaches to win their business.  

As pro-actively responds the business owners to the changing development and needs of the market, they usually depend on the data that they have. Without data, their mere actions would be futile. This is now where data analytics comes into the businesses in the market.  

Four Type of Data Analytics Towards Digital Transformation 

Typically, data analytics is composed of four types and includes diagnostic, descriptive, prescriptive, and predictive analytics. Every type of it has a different objective and different place in the process of analyzing the data. To give you more understanding about these types, then take a glimpse at the following: 

  • Diagnostic — It helps in answering queries about why certain things happened. This technique usually supplements more basic and complex descriptive analytics.  
  • Descriptive — It helps answer the queries about what was happened. This technique summarizes large datasets in describing outputs to stakeholders. This strategy helps in tracking failures or success of the business by developing its Key Performance Indicators.  
  • Prescriptive — It helps in answering queries about what are the things that need to do. By utilizing ideas and data from predictive analytics, a decision-making process can be made. It allows doing modifications, changes, or innovations to respond to the needs pro-actively and wants of the customers.  
  • Predictive — It helps in answering queries about what is expected to happen in the next few days. This strategy uses historical data in identifying trends and determining what will likely occur in the present and future days.  

The Use of Data and Analytics Towards Digital Transformation 

With the data and analytics that can be used by various companies, digital transformation can be achieved. Moreover, business owners can successfully tap their target market since lots of customers may support their products and services.

Have you ever noticed that a business that is well-equipped with new technologies and innovations has numerous clients and customers? Well, this is because customers wanted to make their transactions and overall lifestyles easier and more convenient. So, to cope with your competitors, it is advisable to utilize the essence of data and analytics.  

Benefits of data and analytics for Digital Transformation: 

Helps in Making Decisions for the Benefits and Advantages of the Company 

With the use of data and analytics, your company can be digitally transformed. These can greatly help you in making decisions using predictive analytic consulting that provides an impact on the customers and audiences. The reaction of the customers to the products and services you offer are important elements in making decisions. With this, your business organizations must utilize data resources to understand your customers’ preferences completely.  

Once you already know their preferences, then you can constantly give what they need. Moreover, if you do continuously do this, you can retain them as your loyal customers for a longer period. As an overall impact, you will hit the bottom line of your business — that is, to reach the target market and gain more profit out of your business transactions.  

Improves Productivity and Efficiency to All Employees 

Data and analytics are some main reasons for the productivity and efficiency of all employees in business organizations. Once the business organization has already achieved digital transformation, all pieces of information, documents, and data that the employees need can be found in one server. With this, it’s already a great advantage to your business since everyone can easily access all the documents and things that they need towards maximum production.  

In fact, your employees may not need to use laptops or computers to access the files, documents, or data that they need since they may utilize their mobile phones even in remote areas.  

Improves the Company’s Financial Performance 

The main of the companies why they are doing business in the industry is to earn more money by getting a lot of profit. By embracing the essence of digital transformation, business owners can obtain the stages of success that they aim for.  

So, if your company is now digitally transformed, it means that you don’t need to buy upgrades. Besides, you will need to spend your money on software and applications deemed useful for the company. In this way, it will reduce expenditures that will be needed by the company. Moreover, you can have the chance to spend your money on something more essential like team buildings, team dinners, and overtime pays. Power BI is a perfect example in such a case where it provides a powerful Business Intelligence dashboard for quick insights into company process, revenue, and other matrices.

Immensely Enhances the Experience of the Clients or Customers 

Since your business has complete data and analytics, you may therefore say that these can improve the experience of all your customers. So, you can track the behavior of your customers and record their support interactions. You can even ask them about their dissatisfaction with the products, services, and brands you offer. By simply integrating data and analytics in your business strategies, you can easily enhance the experience of your clients or customers with what you offer.  

Conclusion 

Data and analytics are broad in aspects. These key elements provide a great impact to the business’ development and success if these are properly utilized. Business management is expected to use data analytics techniques to make certain decisions on the right track. By developing these techniques, they may face positive results out of what they are doing.

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