Businesses across the world are adapting to data-centric cultures to make better informed decisions in various areas of their businesses, and experiencing impactful results. Does your organization support data-informed or data-driven strategies? Data and analytics has increasingly become a necessity for continued success of an organization. In prior years, it was incredibly imperative to only have a digital presence online, and now the trends are requiring companies to not only have a presence, but analyze the data they are collecting from various sources - online, internal, and external. As data dramatically increases every day, having a strategy in place sooner rather than later will help in the long term.
Let's discuss the main reasons how adopting data and analytics can benefit your organization and key elements that will setup your organization for success before engaging in a data and analytics implementation.
1. Save Time
A data-informed environment will assist organizations to make more meaningful decisions. With the right tools and infrastructure in place, companies can derive insights faster and solidify more strategic decisions. Creating and implementing business strategies are more educated and proactive, rather than reactive to market demands. For example, an organization can set up a pipeline that ingests all of their worldwide sales data. A thorough and quick analysis can be conducted through visual dashboards that would pinpoint where and how these sales are performing. Based on the analysis, the company is confident in their next investment strategy as to what products and where they should be sold.
2. Save Money
Once a successful strategy is put in place, companies can be on the path to save millions of dollars.
Implementing a data and analytics program within your organization will be an upfront investment, especially if your organization does not already have one. Depending on the needs and dynamics, each company's investment will dramatically vary. However, once a successful strategy is put in place, companies can be on the path to save millions of dollars. For example, a company decides to launch a new product based on a trend that they see happening in the market and based purely from assumption that a customer may want. From those assumptions, the company launches a new product costing them millions of dollars. The new product could potentially fail and result in a massive loss for the company. That could have been prevented if the proper data analysis was conducted for better decision making prior to creating the product.
3. Make Money
The final benefit of implementing data and analytics into your organization is to make money and an overall return on investment. Large organizations that foresee themselves to continue to grow and also have quickly implemented a data-informed environment and strategy, will benefit from this the most. That is because of the upfront investment that is involved. The sooner the company invests, the sooner they will be able to gain the benefits that come along with saving time, saving money, and finally making more money. For example, a data-informed company will know their target audience very well: demographics, customer spending habits, customer behaviors, etc. Having all of this knowledge puts a company ahead in the market, knowing when to release new products/services to their customers, and what to create for their current and prospective customers. Companies that are always thinking ahead will most likely gain customer loyalty, which drives more money to the bottom line.
If your company is at a phase, or nearing a phase, for growth, then implementing your data strategy should also be included in the overall growth strategy. Investing in data and analytics in the early phases of your business will ensure that the company will save time, save money, and make money and continue to engage in data governance best practices.
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Learn how a privately owned grocery store got started with their data and analytics strategy here.
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