How data analytics is transforming business models?

We are currently living in the data-centric world, racing to collect every piece of data that we can get our hands on. But why is it so important for organizations to collect all this data?

Big data has become the most powerful resource when it comes to data mining. Organizations these days cannot succeed if they are aiming blindly at the database of their potential customers. To thrive in the current marketplace, the organizations must be aware about where the marketplace is going, why it is going there, and what kind of efforts are you as an organization is willing to put into the journey.

According to the recent report from McKinsey Global Institute, organizations that use data analytics to make decisions across their business have a 23x greater likelihood of customer acquisition, a 6x greater likelihood of reducing customer churn, and a 19x greater likelihood of being profitable.

In today’s era, even the smallest start-ups can gather all the necessary data with the help of cloud computing. Collecting all the relevant data gives any organization the power to uncover newest insights into marketing and operations. This helps the firm in targeting the right audience, and growing the relevant customer base as per the analytics. Big data is your guide to aim right & grow. However, you would require a clear vision and a well-structured strategic approach to use the discovered data.

The organization needs to get involved in using analytics in order to have a holistic view of your industry. To accomplish this, learn how to redefine & process data and set benchmarks for how that data will be used to transform the business models:

5 Ways to Use Data Analytics in Transforming Business Models

Strategic Analytics

Strategic analytics is a detailed data-driven analysis of your discovered data, which helps you determine what attracts the customers and how to build a strong customer base for future.

The key to strategic analytics is to be able to perform it in the perfect order:

First step is to use Competitive Advantage Analytics, which will help you recognize your abilities, strengths and weaknesses. Second step is to apply Enterprise Analytics to get diagnostics at the enterprise, business unit and business process levels. Third step is to analyze the Human Capital by performing analytics at individual level to get actionable insights.

Platform Analytics

Platform Analytics enables you to incorporate data analytics into decision-making process of an organization to help them improve core operations. It helps you infuse analytics into core decision making across all sectors of an organization from sales to marketing to supply chain, customer support and management. Platform Analytics works as a stethoscope helps in checking the pulse of an organization.

Enterprise Information Management (EIM)

With all the received data, everything gets unmanaged in large organizations. EIM helps an organization take advantage of social, mobile, analytics and cloud technologies (SMAC) to improvise the management of collected data so that it can be utilized in a structured way by the organization for development.

EIM helps you in numerous ways:

Helps an organization streamline their business practices

It helps in enhancing the collaboration efforts

Helps in boosting the productive hours of an employee in & out of the workplace

With a defined EIM strategy an organization is able to identify not just the requirements but also the key issues and opportunities that can help the business grow. It also helps in identifying the potential projects and programs that will help increase the success rate.

Making Data-centric Business

Data-centric business is the key to growth. Especially if we talk about today’s era, it is important for any organization to function according to the collected data. From mining to cleansing to segregating to optimization to innovate your business model accordingly, organization can become the most productive and highly profited organization of its kind.

Business Model Transformation

Organizations that utilize their collected data and transform their business models respectively will be able to create better revenue opportunities and a strong customer base. It is important for an organization to know its market, and with all the collected data each organization can identify the need of their customers and how to build a strong data-base for future growth.