Business Analytics in Innovation & Growth

Innovation is the key to most of the world’s fast-paced sectors, where business analytics has become integral to business operations and performance. Companies who wish to gain a competitive edge in the market employ the services of skilled business analysts. It helps increase business revenue by decreasing costs and waste of resources.

Recent evolution in business analytics can be credited to the introduction of Big Data automation. It revolutionized analytics with different data sources to make it scalable and robust. Business analysts in modern times are equipped with predictive modeling skills and forecasting to make results accurate, efficient, and fast. This is where companies understand the importance of business analytics for innovation and growth.

Must read: A business analyst’s role in the education sector

How do businesses Use Analytics?

Different businesses use various analytics differently to achieve their end goal. Through these analytics methods, all the data can be cleaned, dissected, and absorbed to make it possible to create different solutions. Here are the common areas businesses use analytics:

Uses of Business Analytics

Business Analytics helps different organizations run efficiently and profitably. The following section describes different uses where business analytics proves its worth:

• It analyzes data from different sources, cloud applications, marketing automation tools, and CRM (customer relationship management) software.
• Business analytics uses advanced analytics and statistics to search for different patterns within datasets. It helps in predicting future trends and accessing new insights.
• It monitors KPIs and trends with real-time changes, making it easy for businesses to share the data and give direct conclusions. 
• Business analytics keeps the churn rate (customer attrition rate) low and identifies customer dissatisfaction and other risks.

Also read: Key questions every Business Analyst must ask

Why is Business Analytics Important for Innovation and Growth?

Business analytics has become one of the indispensable parts of businesses for their growth and innovation. Let’s learn about the impact of data analytics on business innovation:

• Pricing strategy – Business analytics helps organizations determine cost-effective, competitive prices to satisfy customer demands without compromising profitability.
• Inspires innovation – It optimizes existing processes and works toward rethinking the value chain for organizations to become efficient.
• Reduce employee turnover – It examines the employee fit with the company by tracking their performances, fulfilling employee satisfaction, and enhancing engagement, increasing the employee retention rate.

Strategies for using analytics to foster business growth

The following section describes different strategies for leveraging business analytics for organizational growth:

Benefits of Using Data-Based Solutions for Organizational Success

Businesses can opt for data-based solutions because it makes the organization more agile and efficient. It helps them measure and adjust the strategies’ effectiveness according to organizational needs. Let’s explore the role of business analytics in driving innovation:

• Data-based solutions bring clarity to business opportunities and streamline the market research process regarding production. According to the market signals, it suggests to the companies whether to continue the production or stop it.
• It helps companies draw important conclusions from the data and test strategies for making the organization efficient.
• Data-based solutions smoothen the decision-making process, leading to the fulfillment of concrete goals and results. It explores new opportunities in other directions and makes the company scalable.
• Data-based solutions are rational and eliminate communication breakdowns based on the ego or opinions of the employees. Decisions based on these solutions raise the morale of the employees, staff engagement, lowers turnover, etc.
• Different data-driven solutions use past information to predict what will happen in the coming years. It helps businesses direct their efforts and strategies in the right direction.

Challenges in Implementing Data-Driven Solutions

The following section describes the challenges in the successful implementation of business analytics for growth:

• Data discovery becomes challenging because it is one of the crucial and fundamental tasks depending on user-centered frameworks.
• Data-driven solutions require integration from different sources to store them together in a unified manner. Sometimes, putting the organization’s systems on a central integration becomes difficult.
• Sometimes, the data becomes uncertain, resulting in measurement and processing errors, so risks are involved. 

Examples of Organizations Using Advanced Analytics to Achieve Innovative Goals

The following section describes some of the notable companies and how BA has impacted their growth to comprehend and understand business analytics usage in the real world:

Uber – The company used business analytics to improve customer query support and ticket assistance based on ML (machine learning) and NLP (natural language processing). Agents can now answer customers quickly and reliably.

Microsoft – It uses business analytics to boost company performance and employee interaction. MS Workplace Analytics reduced work days and employees’ travel distance fees. This way, the company has gained USD 520,000 per year.

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Conclusion

Business analytics is an excellent choice to smoothen a company’s regular operational work for the better. Technology giants and commercial companies worldwide currently use predictive and prescriptive analytics tools. Therefore, this aspect of business companies will grow; it is the right move to make a career in business analytics.