Running a business is incredibly challenging, with 65% of businesses failing in the first 10 years of operation, and 20% fail in their first two years of operations. This is a whopping statistic that shows just how important it is for business owners to do everything possible to promote and sustain their business. One of the best ways to sustain and improve a business over time is through data analytics.
What is Data Analytics?
To put it simply, data analytics is the practice of researching and examining raw data in order to make conclusions about the operation of a business. Data analytics can be used in a variety of fields, including:
- Intelligence operations
- Military planning
During data analytics, analysts to will take a close look at data to determine where there are insufficiencies in a business model, learn how to improve workflow and maximize profits or reduce costs, and learn which parts of a business, if any, can be reduced to minimize expenses. These are just some of the many operations data analytics can help provide.
How to Use Data Analytics
Most business owners implement data analytics without being aware of it. Something as simple as putting the friendliest cashier in the front of a store, to using a supplier that provides materials on time and faster than other competitors, are all examples of using data analytics in real-life scenarios.
However, data analytics is now incredibly advanced, using the power of computer technology, information technology, and algorithms to make decisions and analyze raw data. For business owners that want to optimize their operations and streamline their supply chain, data analytics is crucial.
To begin using data analytics, there’s no better way than to gain a formal education on the topic. An online data analytics program can teach business owners, prospective students that want to make a career in business, and other business professionals the fundamentals of data analytics and how to use it in their everyday job or for their own businesses.
Why a Deeper Understanding of Data Analytics is Necessary
Although it can immensely help with a business’s operations, data analytics can be a bit difficult to understand, especially for business owners that have no formal background or training in data analytics.
Knowing How to Organize Data
For starters, data analytics requires the careful selection and organization of data. It isn’t enough to simply conduct surveys on customers or look at spending statements. Instead, data analytics uses complex organizational structures to determine how a business can improve its customer experience based on that customer’s age, gender, income levels, preferences, and more.
Getting help from a professional data analyst or getting an education in this field allows business owners to understand the importance of data requirements and values.
In addition, someone trained in data analytics, such as someone who holds an MBA with a concentration in data analytics, also carries a deeper understanding of how to interpret findings and create a business plan for these findings. For instance, if it is found that employee productivity is low due to increased cell phone usage, it can be difficult to implement a ban on personal cell phone use. Nevertheless, it is necessary, and a professional data analyst can help improve a business’s functions by providing plans to implement change.
Other changes might also include extending or shortening hours at production sights, investing in other materials, or changing product offerings to customers.
Making Tough Decisions
It’s hard for any business owner to make the decision to cut costs, lay off employees, or cut hours. It can be difficult to understand why cutting costs is necessary. Having the help of someone trained in data analytics or having an education in this field allows business owners to gain a big picture understanding of the importance of cutting costs in order to grow or sustain their business and avoid collapse. Thus, professional data analytics helps business owners make tough decisions easier.