Data analytics is transforming how businesses operate and how value is delivered in every sector. Evidence shows that organizations understand that data and analytics are driving competitive advantage, but very few implement data analytics to reap rewards.
While the significance of data analytics is well-understood, few companies feel they can capitalize on these benefits to build a sustainable advantage, namely, the ability to customize products and services, operate with much more precision and intelligence, and manage risk more effectively.
To be truly successful, businesses need to view analytics as both a strategic and an operational issue and not just a technology issue. Those that do that with increasing data and analytics capabilities see growth in revenue and operating margins.
1. Derives value from raw data
Cloud analytics is an effective tool to derive value from raw data. Integrating new technologies like cloud, IoT, machine learning, and AI into your production facilities provides actionable insight. Embedded systems collect and report on data metrics, providing more tangible data for decision-making. By collecting data from embedded systems, manufacturers can know how best to optimize their production facilities to achieve operational efficiency and productivity.
2. Data-driven decision-making
Analytics matter to businesses of all sizes and sophistication, especially those that are starting and do not have the extra staffing or expertise needed to sift through hundreds of thousands – if not millions – of data points to find relevant data and information. With cloud analytics, your data can be processed by algorithms to build statistical models and derive actionable insights. This approach is incredibly useful for organizations and businesses that need objective decision-making as it prevents them from hiring expensive consultants.
3. Time and money savings
Analytics is a highly powerful tool for a company's bottom line. Companies can save time and money on deployment costs as it allows businesses to access the raw data they need without setting up the data center. At the same time, analytics derive the raw data businesses need to adapt to today's rapidly changing marketplace. In addition, since analytics is a subscription-based service, clients or businesses pay for what they need. This subscription model can be incredibly beneficial in industries with tight margins.
4. Security and compliance
Cloud analytics provide actionable data and insight that help you remain ahead of the curve in security and compliance issues. With traceable data and regular notifications, it's possible to keep tabs on compliance requirements and save time and money associated with security and compliance issues.
5. Remote accessibility
Cloud analytics allows you to store and access data from any endpoint device. That means you can manage your routine tasks anywhere and anytime. With the help of analytics software, you get to improve field service efficiencies, customer retention, and overall revenues for your firm.
How to Use Analytics to Boost Your Bottom Line?
Here are several ways you can use analytics to boost your bottom line:
Reduce physical inventory
If your business supplies products and goods that keep you in stock, you will likely have a physical inventory of these goods. While inventory is inevitable, you don't want to hold on to a pile of merchandise that is not selling. Data analytics can help you figure out the type of inventory that you need and which you will sell; by simply studying customer ordering patterns over time.
Remove dead products
Products have a lifecycle and you may have product offerings that are not worth retaining around. Dead products are offerings that no longer bring revenue for your business and could cost you more to manage, thus negatively affecting your bottom line. Luckily, you can find dead products using data analytics - a part of data analysis that helps businesses prioritize products that generate the most revenue.
Adjust customer service levels
All customers are crucial for businesses, however, some offer more value than others. In most cases, only a fraction of the customers will generate the most profit, making them the most valuable to a business. And over time, these customers and their needs will change. Data analysis can help you determine the customers that bring in the most profits. In manufacturing, analytics can help you identify machines and equipment with the best efficiency levels and prioritize these systems to particular operations.
Improve customer service and quality
Quality products, services, and customer service are what keep businesses afloat. You can excel if you have a culture of treating customers well and providing quality products and services. But if the quality falls and leaves customers disgruntled, your business will suffer. With data analytics, you can keep track of changing customer attitudes by collecting data about complaints and judging satisfaction levels. Data analytics provides visibility into customer satisfaction levels, enabling businesses to adjust customer service levels and product quality.
CSIFLEX – Real-Time Monitoring and Analytics Expert
CSIFLEX has decades of industry expertise in real-time monitoring and data analytics tailored specifically to your production and manufacturing needs. With trusted analytics providers like CSIFLEX, you get to enjoy actionable data and insight. If you’re looking for an effective way to manage all your analytics in one place, find out how analytics can work for you!