There are a lot of reasons to implement data analytics in a modern business. In fact, Towards Data Science has gone as far as to claim without more of a data-driven strategy, a modern company will “perish.” And that may not be an overstatement. With more and more businesses embracing analytics, not to do so is to fall behind, and ultimately — in all likelihood — fail.
Beyond the general need to embrace analytics though, we don’t talk as frequently about how they can help to protect a business. We discuss analytics as a means of general enhancement, or a way to drive growth or marketing strategy. But there are a few ways in which data analytics play a protective role as well.
Saving Time
When we covered ‘5 Reasons to Use dotnet Report for Your Business Analytics’ the idea that it can save valuable time was one of the key points. As we wrote, “Business people require data in multiple formats and reports,” and an efficient means of generating those reports can save everyone involved a lot of time. This is absolutely true of dotnet Report and its specific capability to make sense of data. But it’s also a concept that can be extrapolated to apply to the use of big data and analytics in general.
A business that wastes time is ultimately one that is not taking full advantage of its own resources. This by extension can mean all sorts of losses — in revenue, in growth opportunity, in partnerships and collaborations, and so on. Considering things this way, it’s reasonable to say that implementing data analytics protects a business from unnecessary shortcomings. By saving time in compiling and organizing insights, analytics enable businesses to maximize resources.
Avoiding Unseen Losses
We just discussed losses in various forms that can come about when data isn’t properly utilized. But another related issue in businesses that don’t apply analytics is that some of these and other losses aren’t always even recognized. Poor data management relating to sales, internal accounts, customer engagement and more can, in the worst cases, mean that a business is entirely blind to serious issues. These might include lost information, accounting numbers that don’t add up, and more.
These are things that business leaders already take specific steps to protect themselves against. In fact, the very nature of an LLC — one of the most common forms for a modern business to take — is about defending leaders from personal liability. As ZenBusiness explains, an LLC is the “crucial component to the safety and security of your personal assets.” It makes business losses, debts, and potential legal issues separate from an owner’s personal assets, as a protective measure. And in this context, data analytics can essentially serve as additional protection. While an LLC guards against liability for issues like debt and loss, data analytics can help identify the potential of those problems early on, and potentially help a business avoid them altogether.
Avoiding Missed Opportunities
Lots of businesses today, including many that are quite successful, miss opportunities to cut costs, boost revenue, and generate more activity and engagement. To illustrate the issue with a single stat, Industry Week found just last year that 75% of companies are “missing growth opportunities in supply chain.” That’s a significant number of businesses that simply aren’t accomplishing what they could be in one of the most crucial aspects of their operations. And while that stat isn’t exactly echoed in other areas of modern business, it speaks to the general fact that there are a lot of missed opportunities out there. And these are problems that can ultimately sink a business — or at least lead to lost ground against competition.
Simply put, data analytics can protect against those issues by spotting opportunities that more general management and leadership can miss. Whether in supply chain or elsewhere, analytics exist, in some respects, to identify inefficiencies and present them in ways that make them easier to address. This can enable a company to seize opportunities, rather than waste them, and ultimately to compete where it may otherwise have faltered.
In all of these respects, we can look at data not just as a way for businesses to boost themselves, but also as a way of protecting against some common issues.
Let us know if there are any questions or comments.
