As the world continues to become smarter, data becomes very important for organizations to achieve a competitive advantage. They say data is the new oil, and analytics is how we refine it. Any tech person involved in modern businesses knows that this statement is true. Whether you deal with consulting, towing service, ecommerce, technology products, among others, there is the need to develop a data analytics strategy that can help propel your business to the next level. Today, big data and analytics promise to transform the way organizations conduct their business.
What do we mean by analytics?
Analytics is a disruptive technology that is defining the way businesses conduct the day to day tasks. Analytics involves extracting value from data to drive business intelligence. It is very important for businesses to establish a strong business intelligence strategy to gain a competitive edge. This involves taking all necessary steps that help to better understand a company and the state of the market a company is involved in. For business intelligence to work, you have to start from the ground up, and ensure that you do not leave any important elements that can help in creating a better strategy.
Where to Start
Having a clear strategy is absolutely important for any business looking forward to dominate the market. Businesses should not be caught up in the big data buzz and forget the vital elements that need to be set up. Instead of a company starting with the data itself, it should instead start with a strategy. At this stage, what matters is not the data out there, or what kind of data you will be looking forward to collect, or what your competitors are collecting. The key thing is to evaluate what data is readily or potentially available. For companies to develop a smart strategy, they need to focus on the data they really need to help them achieve their goals.
Where do companies go wrong?
Most companies go wrong when they try to segment their strategies, instead of having a wide view of what they need to achieve. Some may focus on sale and marketing, or another department such as human resource, and miss to have a wide data plan. Managers and the larger corporate body should also quash the myth that analytics belong to the IT department. Analytics should be at the top of any organization, as it dictates how other elements roll out.
Elements of a good strategy
A good analytics strategy comprise of various elements. To create a better strategy, an organization should start by defining their data needs. They must first start by defining how they want to use the data. The next step is to decide how an organization will source and gather the data. There are different ways to source and collect data be it through purchasing from external sources, or collecting it internally. When data has been collected, the next focus lies on how to turn it into insights. This involves applying analytics to the data to extract value. Organizations should also put in place technology infrastructure requirements as these define what software and hardware will be used to turn data valuable.