Importance of Data Analytics
Before completing the analysis, Data must be gathered, arranged, processed, and integrated into various ways. The analyzed Data may be beneficial to your company. Data analysis itself is not a concept that has emerged recently, and many companies have analyzed Data and utilized it in their businesses.
The importance of Data analysis
Why has Data analysis risen in importance over the past few years?
- Values held by consumers are evolving.
- Accelerate business speed
- Current status analysis and future forecast
- Extraction of problems and possibilities
- Decision support
Behind the increasing importance of Data analysis is the diversification of consumer values. With the spread of the Internet and smartphones, the amount of information handled in the world has been steadily increasing. Also, the ways in which information is accessed are diversifying. Under such circumstances, consumer values are rapidly diversifying. We are changing from the era of going to stores to buy products that we learned from TV commercials to the era of buying products that suit ourselves by comparing and examining them in advance using the information on the Internet. Judgment axes such as personal experience and intuition are not enough to respond to such changes. Now that consumer values have diversified, it is impossible to carry out marketing tailored to each individual consumer. Data is important there. Analyzing Data enables us to understand consumer needs and respond quickly to change.
The accelerating speed of business is another reason why Data analysis has become more important. New products are born one after another, unsold products are quickly weeded out, and the cycle of developing the next product is accelerating. Data is still important to respond to such a sense of speed. Making decisions based on Data enables speedy and risk-reducing business.
Quantitative Data analysis enables management strategy formulation and demand forecasting. By accurately analyzing the current situation, you can extract the issues your company is facing and lead to the planning of effective improvement measures. In business, the sooner an organization predicts market trends, the more proactive it is. It is also possible to grasp trends quickly and secure sufficient inventory. Of course, there are many uncertainties in future forecasts, and it is a fact that they cannot be predicted accurately. Data analysis enables you to analyze the relationships between various types of Data and make more accurate future predictions. As a result, you can win the fierce market competition and set yourself apart from the competition.
If you are doing business with problems, distortion will occur somewhere. Especially in situations where you don't even know the problem, you can't come up with a concrete improvement plan, which can be annoying. It is possible to extract problems through Data analysis by digging into the causal relationships and correlations between the Data. It also allows discovering new business opportunities by visualizing what was previously unseen through analysis. We will be able to expand our efforts, such as expanding our business and acquiring new customers.
It is not uncommon for delays in decision-making to have a negative impact on the business. There are many situations in which business decisions are made, such as when to purchase products and when selecting partner companies.