Today's world is full of technology and many advances in this field that make our lives easier in many ways. This is also applied in the business world, so knowing how advanced analytics influences the success of your business is essential.
The correct use of advanced analytics can predict events and behaviors of your customers, suppliers, employees, competition, government entities, weather, etc. It is key information to create your business strategies and redesign them, in order to successfully reach your client.
Decades have passed since companies used only historical data analysis for decision making. Now, with advanced analytics, you have descriptive, prescriptive and predictive analytics at your disposal that, when used appropriately, can bring great benefits to your company.With advanced analytics, companies can get to know the current market better, while knowing what their customers are looking for and what they want, favoring internal decision-making.
What is Advanced Data Analytics?
Before knowing how advanced data analytics can influence the success of your business, it is important to know what exactly it is, as well as some other terms such as Big data. By understanding this you will know the benefits of this strategy.
A well-known saying is "knowledge is power", which is not necessarily true, since having a lot of information and not using it correctly is useless. Day after day, companies around the world collect hundreds of terabytes of information.
This is called Big Data, for its large size. These data in their purest state are not very useful, but after an analysis they are very beneficial.The advanced analytics is nothing more than the use of data in a comprehensive way. With them, you can define strategies, in addition to making decisions according to what is happening and can happen in the market.
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Types of Advanced Analytics
If you have decided to take a step forward in the data analysis of your company, you should know that all its benefits are obtained thanks to the use of tools for statistical analysis, both quantitative and qualitative of the data, together with the application of different types of advanced analytics such as:
• Descriptive analytics
For this type of analysis, the aim is to organize the information, which may be by segmentation, data mining or its categorization.
• Predictive analytics
It is responsible for finding the existence of patterns, trends and relationships between the data. In order to understand what causes it. You can anticipate what may happen and take advantage of the opportunity.
• Prescriptive analytics
This type of analytics uses information in an automated way to support subsequent decision-making. In other words, prescriptive analytics is responsible for automating decision making. To do this, it makes use of mathematical optimization and business rule management systems.
• Optimization analytics
With so much information available, this analysis helps you make the best possible choice among hundreds of different possibilities that can be obtained.
It is difficult to differentiate between traditional analysis and what is considered advanced analytics. Although with the use of statistical tools, stochastic processes, data mining or mathematical algorithms for decision-making, it can be said that these will be based on advanced analytics.
Why is Advanced Data Analytics Necessary in your Business?
Advanced analytics, when well applied in a company, creates the possibility that there is an advantage over the competition. This thanks to the differentiation that it can give, allowing you to do a better job of offering products and services in a more effective way.
Through a comprehensive data analysis, a company can more easily know what products to offer to the public. This taking into account what is most in demand in the season, and create more effective advertising campaigns with an adequate budget.
You can also optimize the prices of your products to make them more attractive to the customer, without generating losses in the company.The benefits of using advanced analytics don't stop there. It can be used for better control of the company's inventories, knowing which are your best raw material suppliers in terms of quality, delivery time and availability. Also to evaluate the best location for a future store or storage center.
A very simple example of how to use advanced analytics effectively can be found in pharmacies. These establishments can use the information predictively. How? If it is known in which season of the year the most colds occur, the store may request a high stock of medicine for this condition and place them visibly in the store, so that the customer has easy access to them.
Following the same idea, knowing the months in which colds increase, the decision can be made to decrease the stock so that it does not take up as much space on the shelves during the seasons in which this condition rarely appears. This would allow these spaces to be used for other medicines that are most sought after in the season.
Descriptively, a company can know the stock of all its products, identifying which is the one that sells the least, thus lowering its production or even the decision to discontinue the product, in favor of those that are sold the most.