The power of data: how it drives business decisions and transforms operationsHow valuable is data to your organisation? Could you imagine running a business without using data?
How valuable is data to your organisation? In today’s digital era, could you imagine running a business without using data?
Did you know that a massive 97.2% of businesses are now investing in Big Data and AI?
Its power is undeniable, and data is now the driving force behind critical business decisions which are reshaping how companies operate.
Take logistics firm UPS as an example. They equipped 10,000 delivery vans with sensors for optimising their routes. Through the data they obtained they saved approx. 38 million litres of fuel with each driver travelling around 19.5km less annually.
In this blog post, we’ll delve into the role of data in modern business operations and how Advanced Analytics, Artificial Intelligence (AI), and Machine Learning (ML) are playing a part in this transformation.
The value of data in business
Data’s the lifeblood of the digital economy. It provides insights into consumer behaviour (in fact, data-driven organisations are 23 times more likely to acquire customers), market trends, and operational efficiency. If you’re a business using data to the maximum, you can make better informed decisions, predict future trends, tailor your products or services to meet customer needs. Ultimately, you’ll gain a competitive edge.
Data allows you to understand your customers on a deeper level. By analysing customer data, you can identify patterns and trends that help to predict future behaviours, preferences, and buying habits. This knowledge will enable your organisation to develop personalised marketing strategies, improve customer service, and ultimately drive growth and profitability.
Another great example of a well-known brand using data to analyse their customer behaviour is Starbucks. Through offering a mobile app rewards programme, the global coffee specialist can track customer buying habits before using that data to recommend products and create more targeted marketing campaigns.
But data is not only about understanding customers – it's also crucial for optimising internal operations. For instance, analytics can highlight bottlenecks in processes, helping managers to make informed decisions about resource allocation and process improvement. It can also help with discovering and analysing patterns, deviations and inconsistencies, and identifying risks.
The role of Advanced Analytics
Advanced Analytics takes raw data and turns it into actionable insights. It involves the use of sophisticated tools and methods, such as predictive modelling, data mining, and statistical analysis, to uncover patterns and correlations that traditional business intelligence methods may overlook.
With Advanced Analytics, businesses can forecast future outcomes based on historical data and current trends. For example, retailers can use predictive analytics to anticipate customer demand during different seasons, enabling them to optimise inventory management and avoid stock shortages or overstock situations. Financial institutions can use analytics to assess credit risk, while healthcare providers can predict patient outcomes based on historical health data.
The emergence of AI and ML
Artificial Intelligence and Machine Learning are revolutionising the way businesses handle and analyse data. They provide tools and methods that automate data analysis, making it faster and more accurate than ever before.
AI uses algorithms to mimic human intelligence, enabling machines to learn from experience and perform tasks that traditionally require human intervention. Think AI-powered chatbots handling customer inquiries - they free up human customer care professionals to handle more complex issues.
And Machine Learning, a subset of AI, involves training machines to learn from data and improve their performance over time without being explicitly programmed. It's particularly useful for tasks involving large amounts of data or complex calculations. For instance, ML algorithms can analyse vast volumes of social media data to identify trends and sentiments, helping businesses to fine-tune their marketing strategies.
The integration of Data, Advanced Analytics, AI, and ML
The integration of Data, Advanced Analytics, AI, and ML is creating a new paradigm in business operations. Businesses are not just collecting data, but also using these technologies to turn data into actionable insights and automate decision-making processes.
For instance, AI and ML can automate the process of data cleaning and pre-processing, which are often time-consuming and prone to error. They can also automate the process of feature selection, which involves identifying the most relevant variables for a predictive model.
And let’s not overlook how these technologies can help businesses to make real-time decisions. For instance, AI algorithms can analyse real-time data from IoT devices to detect anomalies and trigger alerts, enabling businesses to respond promptly to potential issues.
Data’s so much more than just numbers and facts; it's a strategic asset that can drive business growth and innovation. According to McKinsey, “By 2025, smart workflows and seamless interactions among humans and machines will likely be as standard as the corporate balance sheet, and most employees will use data to optimize nearly every aspect of their work.”
Data provides companies with a strategic advantage. Consider power, renewables, and aerospace giant, GE, who is using sensors or gas turbines and jet engines to improve their processes. Not only is data helping them to be increasingly reliable and efficient, they’re also boosting productivity, with the data collected suggesting a 1.5% uplift in output.
Are you ready to join the revolution and unlock the full potential of your data using Advanced Analytics, AI, and ML? Remember, leveraging these technologies requires a strategic approach. Make sure you’re investing in the right tools and talent to ensure data quality and security and foster a data-driven culture. With the right strategy and resources, you’ll benefit from the power of data to stay ahead in the ever-evolving digital world.
Here at Apollo Solutions, we have relationships with some of the best tech, data and Corporate Governance professionals who are using their skills to help transform the way businesses operate. If you’re looking for talent to strengthen your digital capabilities, don’t hesitate to get in touch with us today.