Data Science and its crucial importance in growing business
Anybody who has ever run a business will tell you that it’s no easy matter to get a business underway – it takes ideation, planning, and execution.
They will also tell you that expanding is a whole other process altogether, requiring an uncanny mixture of dedication and foresight and the practical know-how that makes things happen. Success is not found simply through hard work – a lot of acute business sensibility has to be exercised to reach there as well.
For a business to be successful, it has to understand its ideal customers, and where they are located. Moreover, these business also know how to reach out to them. The way they do this is through collecting and using the data methodically to inform as well as incite new action. To know more about how this is done, you can check out various data science courses online.
As revealed in IDC’s info brief “The Next Steps in Digital Transformation”, around 47% of all surveyed entrepreneurial companies adopted data analytics in 2017, either through business analytics or a related business intelligence software.
While this particular finding can be a reliable yardstick for the way ahead, these businesses had also recognized that they were not going deep enough into their data, thus, remaining only at the surface of the analytics that would help them compete more effectively.
Fearing that their workforce, customer base, or operations do not justify the high cost that analytics often entail, a lot of businesses opt not to go for them. In this process, they severely hinder their own progress. It should be noted that such a thought process is not easily dismissible, since, after all, nothing can guarantee a 100% return on investment.
However, data science and its use in businesses are not as unpredictable as a business owner might imagine beginning with. In fact, the following reasons come as close to proving that data science provides tangible results as any modern-day measure can claim to be. Data science can help your business as it can:
Expand your business
All the data you might have, about equipment or any other asset maintenance, distribution scheduling, employee payment and delivery, or your growing customer base, can help you come up with a detailed expansion plan! An analytics report will also suggest to you what will be the most likely scenario in case of one particular expansion.
Moreover, you can always commission a more specific request as to the different paths you may take and where they might lead you, depending upon your expansion needs.
Find your audience for you
Using a variety of tools – from social media analysis to demographic analysis based on any number of factors – you can reach a comprehensive understanding of what your ideal audience looks like with data analytics.
You can combine these business insights with your own customer data, and arrive at a profile of current as well as prospective customers. From here on in, you can dive even deeper. For instance, you can research your competition as well, thus understanding which areas you on which you need to focus more.
Create your business plan
Data analytics can provide you with insights into your business performance to find as well as forecast trends in sales, turnover, and growth. Once you know how well you are performing at any given moment, it becomes easier to lay out a plan of action. Based on the numbers you get, you can take the next big step and develop an in-depth business plan, to take your company even further.
Develop a marketing campaign
Data analytics helps you get a better understanding of your customer base and thereby allows you to reach out to them with the right message at the right time. It can help you create the perfect marketing campaign! Through the data you acquire on your local competitors, you can competitive edge by ensuring that you offer something new to your existing and prospective customers.
Moreover, by fixing on the tiny branding details, on consumer preferences, and how to activate them through the appropriate messaging tone, you can differentiate your business from other similar businesses as well. Data analytics can, therefore, put your date to use in insight-driven, targeted marketing to help your overall business development decisions.
Allow predictive insight to turn into action
This may sound like the most cryptic of all data science advantages, but it’s actually the simplest of them all. By utilizing the predictive insights provided by data analytics, you can take decisive action to take your company to greater heights.
Data analytics enables you to study the factors which influence outcomes, while also giving you the ability to decide which factors you would like to influence through optimization. With crunched data and numbers at your fingertips, you can take challenges in stride, quickly solving them to learn how you can reach the peak of your performance as a business, and expand accordingly.
Ray Boggs, vice president of Small and Medium Business Research at IDC, recently spoke of how small businesses have not accepted data analytics as an important part of their expansion program. Commenting in an IDC Analyst Connection, he noted that this fact can be attributed to an underappreciated value of analytics.
He also added that as small and midsize firms grow, “there is a risk of extending business practices and processes without a critical review of what is essential.”
This is precisely the risk which can be avoided through the use of data analytics, independent of the size of one’s business. With data analytics, growing businesses can interrogate the important questions and be up to date with the best capabilities without significant capital or human resource expenditure.
Also, decision makers are facilitated to discover, visualize, model, predict, manage and collaborate data in a single place with a singular logic. Through this infrastructure, growing businesses can take advantage of the latest digital innovations in a hassle-free experience, without expending too much logistical effort.
This not only reduces the cost of maintaining analytics but also greatly increases returns on investment too! Moreover, secure storage in a data center can be a safe haven against a whole range of virtual or physical threats; this has the ultimate advantage of making data analytics even more reliable.
Thus, data science is a crucial and unmistakably relevant tool to grow one’s business, regardless of what its size is or to what extent one wants to expand it!