It’s a well-known fact that data makes the business world go ‘round, as no company can function without it. The success – or lack thereof – of each enterprise largely depends on its ability to effectively collect and manage data from various sources and then use it to achieve its short- and long-term objectives.
By analysing and interpreting data effectively, companies can decipher the increasing complexity of the current business landscape and gain key insights into different aspects of their organization or the markets they’re a part of. This allows them to make optimal decisions, target specific areas that require improvement, unlock new opportunities, and avoid costly mistakes, ultimately leading to sustained business growth.
Studies reveal that companies that employ data-driven strategies can increase productivity levels by up to 6%, thus earning a considerable advantage over their competitors. However, even if proper data management is the common denominator for building successful ventures, businesses operating in certain areas of activity stand to gain more from leveraging data analytics than others. This calls for a closer look at the industries where data analytics has the biggest impact so we can understand this correlation better.
The main benefits of data analytics
Before we jump into industry specifics, it’s worth offering a more detailed breakdown of the advantages that data analytics provides. Just like the name implies, data analytics refers to the entirety of processes, procedures, and tools aimed at extracting useful information from large amounts of raw datasets, including researching, collecting, organising, storing, and transforming, with the ultimate purpose of enabling informed decision-making.
When carried out correctly, data analytics can benefit businesses in many ways, such as:
- Making better decisions – examining relevant data helps companies gain a better understanding of the internal and external factors shaping their trajectory. By identifying patterns and staying on top of changing trends, companies can develop and adapt strategies accordingly so they can achieve better outcomes.
- Increasing productivity – data analytics facilitates automation, enables better resource allocation, and accelerates workflows, which results in streamlined business operations and enhanced productivity levels.
- Enhancing customer satisfaction – with the help of data analytics, companies can gain a clearer picture of their customers’ behaviours, desires, and needs and align their offerings accordingly. Armed with this knowledge, they can also draft tailored services that respond to individual requirements and thus improve customer experience and satisfaction.
- Reducing errors and risks – real-time data monitoring gives enterprises the possibility to detect and tackle risks promptly, reducing the likelihood of errors and other incidents that might disrupt their normal activity.
The industries where data analytics is a crucial ingredient
Now, let’s look at the sectors where data analytics makes the biggest difference and why.
Finance
Data analytics plays a vital role in the safe and smooth running of financial institutions and businesses, be it banks, brokers, hedge funds, lenders, and so on. Not only do financial providers have to ensure the safety of their services and products against cyber attacks and other threats, but they also have to be on the constant lookout for new solutions that can put them ahead of their competitors.
Data analytics and comprehensive market research for financial institutions can help these entities improve important focus areas such as risk management, KYC (know your customer) checks, security protocols, personalisation, predictive analytics, and regulatory compliance and thus deliver effective and reliable services to all customers.
Healthcare
Healthcare might not be the first industry to come to mind when you think of data analytics, but when you take into consideration the rapid evolution of this field and the integration with advanced technologies, it starts to make sense why data analytics is such a crucial component for these organisations.
In healthcare, data analytics is used to enable access to patients’ records and draw insights from them, keep track of patients’ evolution, spot patterns, and give healthcare providers the information they require to determine the best course of action. Wearable devices, RPM (remote patient monitoring), and health apps are often employed in this respect. All these practices make doctors’ jobs easier, improving care services and contributing to better health outcomes.
Manufacturing
To turn raw materials into finite products, companies in the manufacturing sector require robust and well-planned supply chains that ensure the timely and seamless movement of components and resources from one point to the other.
Keeping all the wheels of the supply chain turning and functioning as expected is no easy feat, but processes and operations can be optimised through data analytics. This provides a bird-eye view of the state of the supply chain, helping companies keep track of materials, monitor each stage of the production process, identify bottlenecks, and address issues as soon as they arise. The result is increased efficiency, lower costs, reduced downtime, timely delivery of products, and higher profits.
Retail
Running a retail business requires a fine balancing act between supply and demand, while also taking into account customers’ changing needs and market trends and choosing the right pricing strategy.
Data analytics comes to the rescue in this case as well, as it provides companies with the necessary information related to customer demand across product categories and geographical locations so they can determine stock needs and prevent shortages or excess inventory. Retail analytics can also be used to provide customers with personalised recommendations, ensuring a more satisfactory experience and increased sales.
Travel
The travel and hospitality industry is also impacted by data analytics in that it facilitates the delivery of more personalised services and experiences, which is exactly what tourists expect these days.
Proper use of data is also key for understanding how different factors like economic conditions or weather phenomena can influence travel trends, allowing operators to predict demand fluctuations, optimise pricing, and craft better offers that meet clients’ needs.
Marketing
The connection between data analytics and efficient marketing is impossible to ignore. With the right data on hand, marketers can create powerful messages and develop highly effective strategies that hit the mark every time and drive faster and better results.
We can also include education, fashion, transportation, real estate, insurance, and entertainment on the list of industries and sectors that are highly dependent on data analytics. In the end, the businesses that know how to take advantage of data are the ones that will prevail.
