1. Help you understand your “numbers”
Each business is unique, and understanding the most important numbers for your business is a key factor to success. Usually these are called Key Performance Indicators (KPI). Data analytics makes it possible to extract and combine the different data points to have accurate measurements of KPI’s.
These is a 20/80 rule of thumb in business, it is usually 20% of your business efforts/offerings that brings in 80% of the revenue/results. Data analytics can help you identify your business’s 20%. Doubling down on the 20% and eliminating the waste (80%) is a great way to free up resources.
2. Visualise the business performance
Business is an everchanging environment and companies have to keep a close eye on business performance. This is where data analytics can shine for you. When you have your business data in graphs and chart it is far easier to analyse compared to having data in table form.
3. Unlock previously unknown opportunities
You will be surprise with the amount of actionable information that can be unlocked with data analytics. It is not the obvious that will make your business a fortune, as your competitors are probably also already doing the obvious. You will need to identify and unlock opportunities within the market that competitors are overlooking, this is where data analytics can be a game changer.
Knowing for example what is the single fastest growing item by sales (MoM) in your business can unlock trends in the market before it becomes common knowledge. Identifying these trends early will give you greater opportunity to maximise profit from the trends.