Analytics : Is it Required?
- Ankit Gupta
Analytics, is the most lucrative and talked about word in today's businesses. Every big enterprise is trying to prove its mettle in this field - be it by beating World's No.1 in Chess Game or crunching petabytes of data in seconds.
It's been decades, since enterprises are using analytics, starting from Excels to much more complex tools to drive meaningful insights and predict the future. On a lighter note, if one can't afford this kind of analytics then they can rely on Astrologers, as can also predict the future. All of this is to increase business revenues.
In today's business environment where we get so advance analytics tools at our disposal, things have become difficult with too many options. Now businesses tend to do a pre-analysis like the ones mentioned below before doing the actual analysis:
Should I use Descriptive Analytics?
Should I use Exploratory Analytics?
Should I use Predictive Analytics?
Should I use Prescriptive Analytics?
Should I use Suggestive Analytics?
Should I use Unstructured Analytics?
Think about it, Can the analytics be only done by machines. The answer will be thumping NO….Human is an intellectual being, who is doing analysis from centuries, that's the reason we are at top of the food chain and evolved. We analyze all the times starting from “buying the vegetables” to “buying a businesses”. There were massive empires which had been setup and run successfully without all these sophisticated tools. We have always used data, no matter how small, and oure experiences to take the both business and personal decisions.
Human being is an intellectual being but with finite capability, which also differs with each individual. In today's world the amount of data which gets generated in a year is far more than the data which got generated in the past. Besides the stakeholders (like privacy regulators, IT etc) in a enterprises have also increased significantly hence it's no more one man show..
“Necessity is mother of all Inventions”
This holds true even for analytics, with ever growing size of data and its stakeholders. There is now a need for consistency, so that everyone can see and comprehend the data in the same manner.
The landscape of analytics is changing with the kind of data getting generated and the speed at which it's getting generated. Now with the advent of social media the capability of each individual to generate the data has increased hundred times, which makes them all the more important. So now the companies have to focus more on individuals rather than on groups, and it is impossible for a human being to remember everything about their customers and their preferences. So a tool which can store their customer information and prompt them when required, is needed.
Similarly, smarter machines are made, which creates data every second and send it back to their owners. With the advent of Internet of Things (IOT) different machines will talk to each other and share information and learn from other machine's experiences. Something which was confined only to human beings until now.
All this is important because the dynamics of businesses are changing very fast; brands which were made over the decades are ruined within days, risks are much higher, and competition is fierce. Business has to stay ahead of others, hence they need to make correct decisions in least amount of time, and reap the benefit of early mover advantage.
Why Management needs Analytics?
The people who run the businesses are different from the owners, so they have to back their decisions, that's where analytics come to their rescue and act as their job insurance in case they are being questioned about their moves.