Thanks to a growth in modern technology, it’s now possible for businesses of all sizes to use business analytics tools to increase their overall performance. Below, we consider why every small or medium-sized business should adopt analytics and how you can improve your existing analytics toolbox.
Business analytics is an umbrella term for the skills, technologies, and strategies that companies use to analyze their past performance and plan for the future. The results help you drive business growth and address any shortcomings.
Are SMBs really embracing analytics technology, though? Statistics show that they are. Two-thousand-eighteen saw a 42 percent increase in business analytics use by small and medium-sized businesses from 2015, which shows that more companies are realizing how many benefits big data and business analytics can bring to their performance.
What does this all mean? It means that if you haven’t embraced analytics yet, you could be falling behind your competitors.
Why business analytics is so important
Business analytics allows you to make smarter, cost-effective business decisions. The tech is the only way to understand the wider environment your company operates in. A recent report estimates that 42 percent of US businesses fail because the market for their product or service isn’t big enough, and a further 14 percent of US businesses fail because they don’t understand what their customers really want.
With business analytics, you can reduce the risk of business failure by better understanding your marketplace and the customers you’re trying to generate. You can also react quickly to changes and anticipate downturns before they arise.
Tips for improving your business analytics strategy
It’s possible to improve your business analytics in a cost-smart, efficient way. Here’s how.
Understand your goal
The first step to better analytics is understanding the value that business analytics can bring. Remember why you’re using analytics and the positives the technology will offer you.
To begin, your goal should be to improve your business based on analytics data. Then, you can set smaller goals and steps for how you plan on achieving these specific goals.
Spread it around
Direct analytics towards where your company needs it most. You’ll know where to direct your efforts after establishing your goals.
In most cases, it’s a good idea to spread analytics across your whole organization so you have an overview of your entire operations and how you’re performing.
There’s no point in analytics if you don’t act on the data you receive. A tip is to set up automated alerts so you know when new data is available, and you can react instantly to the findings. This is especially useful if you operate in a sector that’s subject to market fluctuations or unpredictable conditions.
Ask for advice
If you don’t know where to start with business analytics or you’re unsure how to make your existing strategy more efficient, ask IT specialists for help. A specialist can quickly identify the best way to improve your business analytics in light of your budget, company size, and goals.
Improve your strategy today
Business analytics can radically improve your commercial performance by helping you better understand, firstly, how your business actually works, and secondly, what your current and prospective customers are looking for. It’s a tool that no modern business should be without. For more information on implementing a business analytics strategy in your company, contact us today.