Data is all around us. Today, it is the world’s most valuable asset, yet its value cannot truly be quantified, and everything that we do creates more of it. Every electronic communication, bank withdrawal, and Google search creates a piece of data that will end up in storage.
Due to the huge amount of data that now exists in our world, data analysis is becoming increasingly relevant and highly valuable for organizations.
What is Data Analysis?
Data analysis, sometimes called data analytics, is the process of examining facts and figures to extract information from it. This information can then be used for business purposes such as to drive decision making or secure venture capital, for example.
Right now, it is being heavily performed in major industries. While the concept of “big data” and data analysis has been around for a very long time, it is becoming more and more relevant as the world becomes more digitally connected.
Why Do Businesses Need It?
With data analysis, organizations can use the data they possess to identify new and lucrative opportunities. This, in turn, results in smarter decision making, commercial moves, and more efficient operations. The knock-on effect of this is happier customers and higher profits.
Some of the areas where organizations can extract value from data analysis include:
1. Cost reduction
Big data technologies and cloud-based analytics tools can bring huge advantages in the form of cost savings, particularly when it comes to storing data.
Not only that, data analysis can show business leaders where they can make their operations more efficient and thus cut down operating costs, too. Whether it smarter invoicing or the implementation of entirely new processes, data analysis can aid decision making in areas that truly count.
2. Better decision making
As we have just mentioned, data analysis leads to better, faster decision making.
With the speed of data analytics and its ability to analyze datasets and sources, businesses can immediately disseminate information and make decisions based on what they have learned. With the right tools and processes, decisions are more efficient and better all around.
3. New products and services
Data analysis also enables organizations to understand their customers and clients better. With this ability to gauge needs, desires, and satisfaction through analytics, it is much easier to give the people who matter what they want.
With data analytics, more organizations are creating products and services that meet the customers’ needs.
Which Industries are Using Data Analysis?
The short answer is most, if not all, of them. However, there are a few notable examples.
1. Retail and e-commerce
Customer service has evolved massively over the last few years. Savvier shoppers who know what they want expect retailers and e-commerce operators to understand that, too.
It is data analysis that enables retailers and e-commerce operators to find out, meet, and exceed the demands of their customers. With endless data flying in from buying habits, research, loyalty programs, and other sources, retailers can get an in-depth understanding of their customers and use this to provide the perfect service level.
In the healthcare industry, data is a given. Health plans, patient records, and insurance information are just a few of the many different data types that exist here, and managing it all can be difficult.
Once data analysis is applied, however, there are plenty of insights that can be used. By analyzing lots of it quickly, healthcare providers can provide diagnoses that are potentially lifesaving or provide treatment almost instantly, much quicker than would be the case without any data analytics being used.
As healthcare becomes more intertwined with the IoT, expect there to be even more data being created than what there already is!
In manufacturing, problem-solving is hardly anything that’s new; they deal with difficult issues day in, day out. Whether it is solving complicated supply chain problems or dealing with equipment breaking down, there is always something that needs to be resolved.
This is why data analysis is so valuable to the manufacturing industry. It has enabled organizations to find new opportunities for cost saving, ways to make their operations more efficient, and stumble upon new opportunities for revenues.