Not long ago, analytics was seen as the secret domain of mysterious data wizards. They toiled away on select projects, far removed from the daily workings of a company. Even the C-suite wasn’t quite sure what they did. Today, that kind of data siloing is a recipe for disaster.
The ability to capitalize on data insights and analytics can make or break a company. And big data, artificial intelligence, and predictive analytics have every organization scrambling for an advantage—or fearing disruption.
While all successful enterprises capitalize on data and analytics to some degree, new research from Forbes Insights and Cisco shows how pervasive modern analytics strategies have become within nearly all business initiatives. In fact, 51% of C-suite executives at large enterprises in both North America and Europe say analytics will only continue to grow in importance for maintaining and growing market share over the next two years.
To reap the rewards of data-driven business initiatives, enterprises must make targeted investments in traditional and emerging analytics tools, as well as in underlying IT infrastructures to support them. But how can the beneficiaries of analytics convince senior managers to invest in these areas?
Here are six key reasons to invest in analytics now:
- Analytics maturity puts companies in a stronger competitive position. The combination of historical and near-real-time data, plus the ability to merge and analyze all this information, gives enterprises a competitive edge as disruption continues to impact almost all industries. For example, companies in highly competitive markets where customers are ready to switch vendors whenever better deals come along (think: telecommunications providers) can spot tell-tale signs of “churn” and send offers designed to retain profitable accounts.
- By capitalizing on corporate and departmental data, companies can quickly identify new business opportunities and emerging market trends. Sophisticated analytics provide essential insights to marketing departments to help them understand how best to engage with customers across multi-touch, multi-channel communications and transaction pipelines. What separates the savviest users of analytics from the rest is their ability to drill into historical information to see what past programs have been successful, and then apply predictive algorithms to become more successful in the future.
- Analytical insights uncover ways to reduce expenses. Data insights developed at the corporate and departmental levels can identify cost-avoidance opportunities and cases of wasteful spending. For instance, insurance companies scour large volumes of claims data for patterns that may be signs of possible fraud and worth a closer look by investigators.