Using Data Analytics and Technology Solutions to Make Data-Driven Decisions

Delving into the critical role of data analytics and technology solutions in data-driven decision making 

The advent of digitization in a multitude of industries has resulted in a data explosion, putting immense pressure on top management to improve their overall performance. As a result, top management is turning to data analytics to make critical decisions to stay ahead of the competition. With the help of these analytical insights, they interpret complex data sets and better understand the dynamics of their company’s products and services to better serve their consumers. And with the big data expected to reach a 175 zettabytes mark by 2025 globally, these businesses are struggling to cope with the changing environment to avoid disruption caused by such an influx of data. They are striving for efficient in-place file management to analyze and derive relevant information from them. However, some of them have mastered business analytics and are reaping huge rewards as a result. Here are a few examples.

E-commerce
Based on prior purchases and search activity trends, e-commerce businesses use data to identify which products to recommend to customers. Rather than randomly suggesting a product, machine learning, and artificial intelligence guide e-commerce businesses’ recommendation engines. According to McKinsey, 35 percent of client purchases made on e-commerce businesses in 2017 were influenced by the company’s recommendation algorithm.

Search Engine
People analytics is a term used by businesses to describe how they collect data on performance reviews and relate it to employee engagement rates. These companies then use the data to discover the common tendencies of high-performing managers and create training programs to enhance their abilities. As a result of these activities, managers’ median favorability scores climbed from 83 percent to 88 percent.

Food and Beverages
Following the shutdown of hundreds of Starbucks locations in 2008, then-CEO Howard Schultz said that the company would take a more scientific approach to find new locations. And the company did so by partnering with a location-analytics business to find ideal store locations based on demographics and traffic patterns. It interacts with its regional teams before making decisions. It uses this data to determine the likelihood of a location’s success before investing in a new site.
The critical thing to remember here is that these businesses aren’t doing anything out of the usual. In reality, they are just using the data they get from their customers or users and are combining it with unstructured analytics and data-driven decision-making tools to improve their market position. Some of those data-driven decision-making systems are:

Data Warehouse
A data warehouse is a consolidated repository or data catalog that contains data from several sources that have been combined. A solid data warehousing system can provide a corporation with vital data points. Small businesses and major enterprises alike can utilize these data warehouses to gather critical information for their operations and benefit from data warehouse software. While the term “warehouse” conjures up thoughts of a physical place, many of these are based on cloud data management solutions and may be scaled to any extent.

Customer Data Platforms
Customers nowadays seldom visit a single store, make a purchase, and then go about their daily lives. They research and compare products and shopping experiences across many websites and platforms before making a decision. The omnichannel customer journey is tracked using these customer data platforms or CDPs.
These platforms gather customer data to generate customer profiles used in direct marketing efforts. They work by collecting data as clients move through each touchpoint and aggregating it to other business intelligence tools and information management solutions. CDPs can also help prevent data silos by ensuring that all your workforces understand who your customers are, how they shop, and what inspires them.


Business Intelligence Solutions

Data warehouses are consolidated repositories or catalogs, but business intelligence solutions enable you to evaluate data in meaningful ways to aid data-driven decision-making and forecasting.


Personalization
Personalization solutions can help businesses transition from a one-to-many customer marketing strategy to a one-to-one approach. Customization options, such as dynamic content, product suggestions, special discounts, and more, may help you deliver individualized experiences for each customer.

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