Data analytics is like taking a magnifying glass to all areas of your business investigating strengths, weaknesses and opportunities to improve operations, productivity, security and profits. Many businesses rely heavily on digital movements like technology and Artificial Intelligence (AI), which generally speaking, is the use of any computer software that interacts and engages in a human-like activity — for instance, problem-solving, flagging potential problems, learning and planning.
AI apps are so sophisticated that they can take all the data obtained from various customers and employees and discover essential trends and get a glimpse into a company’s future.
New data streams, that didn’t exist just a few years ago, are now available due to the world undergoing a digital transformation. This means data can be collated and used in a variety of different and innovative ways to improve the operations of your business and in turn, your bottom line. Are you ready to take a closer look?
Don’t miss the off ramp - leaders need to embrace continuous development
Artificial Intelligence (AI) has the capability to filter through massive amounts of data which previously would have proven too tedious or feasible or simply not possible, to draw actionable conclusions and make business decisions to improve operations.
In doing so businesses obtain a greater understanding of the customer journey and be better positioned to creatively apply the right technology at the right time, enhancing customer relations through effective engagement and timely dialogue, building a greater rapport.
Data-driven analytics is a top-down, holistic perspective of an enterprise’s operations. This is one of the most prolific ways for companies to gain insights providing real customer preferences and behaviours, rather than relying on assumptions regarding who they are!
Every year new software assisting to reduce business inefficiencies is launched. Therefore, the question all business owners need to answer is – are you capitalising on this innovative tech?
Quite simply, if you are still operating in the same manner as 10 years ago without any significant upgrades in technological processes or availability of new data – your operations are likely outdated or at least inefficient. The only way to accurately make informed business decisions is by collating as much relevant consumer data possible.
Leverage data intelligence to facilitate informed, insightful decisions
It is only when qualitative and quantitative research is at the heart of business strategic decision, regardless of whether you run a large multinational or a small family-run business, insights will drive key business questions, such as trends and patterns highlighting ‘How can I improve customer satisfaction?’
In essence, data leads to insights; business owners and managers can morph these insights into decisions and trigger actions to improve and future proof their business.
Digital technologies ascertain a positive difference by identifying specific operational changes likely to improve overall business performance from warehousing to distribution, supply chains to human resource recruitment, price fluctuations and buying patterns, to marketing and customer service. This may mean acquiring or developing new talent that better understands digital technologies and how they best be applied.
However, to meet these future challenges, business leaders must quickly evaluate and invest in real business requirements, whilst suppressing the impulse to chase technology trends, otherwise it could be a waste.
According to consultant Marina Martin in Business Efficiency for Dummies “Inefficiencies costs businesses as much as 20 to 30 percent of their annual revenue,” writes. “Imagine what your company could do if it had 20% extra funds to funnel into customer acquisition or research and development?”
Data analytics + business intelligence = reduced waste
Data analysis increases efficiencies, significantly reduces or completely eliminates business wastage and enhance profits. So, where to begin to mitigate waste?
Coraggio recommends an “assessment” of your data strategy by initially applying these steps to determine what do you want to do with this data!
In essence an audit to clearly identify what it is you wish to achieve and then collect the relevant data to inform and improve business decision making, revamp and refine operations and create new revenue streams, including potential business opportunities.
Afterall, it is critical to acknowledge what business processes and analytical insights you want to measure, because you can’t manage what you don’t measure!
- Commence with a clear strategic direction – start with the end in mind by determining what data you could or should access, by generating clear and concise strategic objectives – typically they will incorporate, the customer, finance and operations.
- Highlight unanswered questions – work out exactly what you need to know to enable focussing on the data you really need to assist answer the most pressing questions.
- Eliminate data you already have access to and determine if the benefit outweigh the costs and effort, by treating data like any other key business investment. If so, establish processes and people to gather and manage your data, unless it is an analysis-ready data set, in which case there’s no need to collate.
- Additionally, it is crucial the insights gained from your data intelligence informs key decisions, ultimately improving performance, operational efficiencies and transforming your business. This historical data can be used to make predictions regarding future behaviours, events and highly effective strategic actions.
- The more robust and compelling your data is, the more attractive it becomes as a business asset. In fact, companies are now being bought and sold based on their acquired data. Even if your business is not seeking to be acquired, your data is still valuable because every business is a data business and it is imperative to understand how you use the data to improve business decision-making, operations and revenue streams.
Finally, use this data analysis to create continuous internal improvement plans and deliver seamless more reliable operational efficiencies, which may incorporate:
- Liaising with employees and end-users of these processes to determine how they can be fixed
- Looking at bottlenecks to ascertain how to reverse-engineer the problems
- Identifying unnecessary delays in the process and identify how to fast-track
- Assessing tools, machinery, or software that’s being used to cause issues
- Acknowledging and rectifying bad process outputs or quality issues.
In addition, insights from this business intelligence can assist your business:
- Acknowledge and meet consumer demands
- Improve service level performance including order fulfilment
- Eliminate poor-performing suppliers
- Use customer complaints and refund requests to improve products and services
- Identify, cater to, and retain loyal customers/clients to optimise your marketing and advertising investment
- Scale, decrease, and manage operational costs.
All collated company information is a positive step forward towards providing useful insights to improve your business, products, services, security and if relevant, ultimately the potential to navigate, scale and re-sell your business. As cited earlier = Start with the end in mind!
Operating a business typically presents complex issues, sometimes on a daily basis. Imagine if you could leverage the experience from an extensive group of industry peers to improve your decision-making and future-proof a sustainable business?
Also imagine if you gained the peace of mind to seamlessly access these answers and navigate other business challenges, simply by connecting with other business owners, including entrepreneurs? This is the strength of peer to peer and leadership mentoring.
Coraggio offers a mutual exchange of expertise and support system enabling you to capitalise on a give-and-take dynamic amongst people who have walked the path before mitigating risk to your business.
Coraggio Chairs are industry leaders, members are forward-thinking advisors and all teams are dedicated to the ongoing success of their fellow member’s businesses, offering Fearless Objective Advice – that’s the Coraggion Spirit!
In the words of Henry Ford “If everyone is moving forward together, then success takes care of itself”.
Would you like to be a part of this?
Want to be an integral member of a confidential group of business owners sharing their insights and experiences for the benefit of your business? Imagine how your business would benefit and grow from connecting with a broader community consisting of more than 400 high performing and driven business owners!
Explore membership today! Find out how our proven program can help you build a better business and become a better leader.