Data is one of the core assets for a business; however, sometimes, it's not clear how to use that information for the company's benefit. AI's growth is bringing an influx of data to the organization at massive volumes. All this data is valuable for the business, but they don't know how to evaluate or interpret such huge amounts of data.
According to sources, effectively utilizing & managing data is crucial to sustaining businesses in 2025. Most executives surveyed agreed that data was imperative for a company's financial growth, performance, staff & customer experience, and general competitiveness in the industry.
However, one of the biggest challenges in data analytics is determining which analytics tools to choose. With the launch of new analytical tools, businesses have difficulty deciding which is the most suited for them. Moreover, it is vital for all groups in an enterprise to utilize the same tools.
Today, businesses are producing massive volumes of data like never before. Hence, it has become even more important to reap the advantage of that data and use it in a way that can give you an edge over your competitors. And data analytical tools are the best way of doing this.
Topic to Cover-
- What is Data Analytics?
- How to Choose the Right Data Analytics Solutions?
- The Bottom Line
What is Data Analytics?
As said earlier, companies across the globe produce high volumes of data, and they need to use all this data to extract value out of it and make the best business decisions; this is where Data Analytics comes into the picture.
Data Analytics is the process of evaluating and exploring massive datasets to discover hidden patterns, find correlations, inconspicuous trends, and pull relevant insights to make business forecasts. It enhances your businesses' speed and efficiency.
How to Choose the Right Data Analytics Solutions?
1) Start with determining your business goals.
Determining the business goals is the first step before becoming overloaded with several choices to choose the right tool. Your analytics tool should clearly indicate how it can help you attain your target goals; only then is it worth it.
Define the goals for your business and build a well-designed strategy. What do you want to accomplish with your data strategy? Begin by looking for a bunch of business problems or opportunities with the greatest impact. Have a better understanding of what your customers want and target those goals.
2) See what your competitors are doing.
Industry research is very important before you implement anything in your business. Hence, do some research to discover which analytics tools, solutions, and platforms your nemesis are using to resolve issues or create opportunities.
For instance, live streaming platforms might observe how other businesses use AI suggestion engines to enhance the customer experience, while credit card companies will be more concerned with fraud detection tools.
3) Consider the end-user.
To make the most out of big data, you'll need to incorporate a data strategy that includes everyone in the business, from high-ranking executives to front-line staff. Think about how data analytics applies to different roles in your business.
4) Consider the cost structure.
Before choosing the analytics tool, you should be fully aware of the costs related to the tools you are analyzing. Different analytics tools have different pricing structures, and it's vital to understand it before investing in it.
There are 3 things to consider regarding the costs- hidden charges, subscriptions, and onboarding fees.
Onboarding charges are usually levied on tailored analytics solutions. Tailored solutions are meant to solve the particular issues faced by your business rather than using a generic solution that might not solve their issues.
Ensure that you will be spending on your data analytics tools upfront to eliminate any surprises in the future.
5) Support from your analytics provider
This is another thing you must consider while choosing the right data analytics solution. Some tools are for self-run, while some are based on partnership, where the provider checks in quite frequently to help you use their solution in lucrative ways.
However, if you are confused about which approach to choose, let's make it simple for you. If you need to understand your data or need some customizations, the partnership approach is the best fit. Whereas, if your data needs are simple and don't require any tailored solutions, you can go for a self-run approach.
However, make sure whatever you choose is a solution for the long run.
6) One size cannot fit all businesses.
The value from your data analytics solutions comes from the analytics side of it, not from the reporting side. However, for most people, customization inquiries will be confined to reporting and visualization only.
It should be noted that every business has unique needs. This means unique data collection and analytics are needed for growth. Based on your business type, can the analytics solution accommodate all the data produced by your business and evaluate it to render you the insights you need?
Make sure that the solution you choose can meet your specific needs for the present and the future. This is because most analytics solutions only render minimal customization abilities and cannot expand further.
To conclude, take your businesses' unique needs into account and figure out if or not the chosen solution can meet those needs.
The Bottom Line
After going through all the above points, the first thing to remember is not compromising your business goals. Look for a solution to solve your data challenges to focus on accomplishing your monthly goals. Know your business requirements and look for an apt data analytics solution provider who can offer what you need. Don't neglect the young and small startup providers because sometimes they can provide more in terms of value and complexity than the bigger analytics provider. Research and looking around for potential solutions can help businesses feel confident with their choices before making any decision.
Ultimately, data analytics is the backbone for your successful business, and evaluating the solutions that will be used to examine the data is one way to guarantee that a company stays healthy for upcoming years.