Importance of Business Analytics
Helen Lee Schifter, the former Hearst and Conde Nast editor is a numbers woman, having worked also as an arbitrage trader on Wall Street. Therefore, Schifter is a big proponent of having all the necessary business analytics in order to make critical decisions in business.
Smart businesses employ business analytics to make data-driven decisions. With most business decisions, a company move either makes sense or it does not. Making decisions based on gut instincts rarely pays off, this unless you hire a good psychic, check the full article at the link. Without business analytics, you’re looking at a disaster waiting to happen.
In addition, using hard business analysis makes decisions much easier to make. A decision of a company may be expected to prove that you need it based on the cold, hard facts.
The numbers also give the CEOs and top business leaders like Andrew Defrancesco some vital insights into where the company is doing great and where it is weakest. In fact, after the numbers come in, a company may choose to drop a line of their business entirely as barely profitable, or on the opposite end of the spectrum, where to double down for maximum profit.
Remember the 80/20 rule in business which time and time again has made real sense. Eighty percent of your profits will come from 20 percent of your product or service offerings.
Helen Lee Schifter believes that another thing about business analytics is that they promote efficiency. And in fact, where the numbers dictate, a business can expect to zoom in its profits significantly in a short period of time.
Business analytics also reduce risk in a business strategy. And often the most profitable companies are those that minimize risks.
Business analytics can drive up customer satisfaction by knowing the key products that customers want and how much they are willing to pay for those products.
Business analytics also can reduce employee turnover. It costs a great deal of money for a company to lose a valuable employee to a competitor and probably as much for a business to hire the wrong employee in the first place.
Human Resources, employing business analytics, can make your company a much better place to work for.
Another use for business analytics is analyzing fraudulent purchases. Certain companies such as software companies are riddled with fraudulent purchases that can cost a company millions.
Of course, your marketing and advertising team will naturally rely on analytics to a critical degree. For every dollar spent, it is important to be able to analyze the return on investment, as well as determining the best media to advertise and market towards.
Finally, business analytics can help you compare your company with your competitors.
What areas do your competitors excel in and do they have areas where they are weak in and your company can overtake them.
Business is in many cases, like a war, and a company needs to have a complete strategy to go ahead and keep ahead of their counterparts. But if you don’t know where you are going, you likely won’t get there.