How Companies Utilize Data to Make Better Decisions

How Companies Utilize Data to Make Better Decisions

How Companies Utilize Data to Make Better Decisions banner

When multi-million dollar decisions are made in the corporate world, it is no longer viable to rely on your instincts or go by gut feeling. The fact is, it was always dangerous to make such hasty decisions based on emotions or instincts. The difference is, today there is so much more helpful data available. This information, when properly analyzed and utilized, can maximize results and minimize errors.

A career in data analytics offers an interesting and financially rewarding career with opportunities in a wide variety of business sectors. From marketing to manufacturing and from sports and entertainment to social media, a career in analytics provides diverse choices and solid potential for future growth. While those who are mathematically inclined will likely enjoy a career in data analytics, it is certainly not a requirement. It can be an excellent career choice for those who enjoy aspects of marketing and advertising, human behavior and psychology and those who would enjoy a career where they can make a significant impact.

What is Data Analytics?

Investopedia defines data analytics as “the science of analyzing raw data in order to make decisions based on that information.” In business, this means choosing a path forward based on the raw data that business has access to. Today, many companies using big data do so to help make decisions regarding new product development, customer retention, customer acquisition, marketing, determining their target market needs and desires and so much more. If knowledge is power, big data is that power. If use of knowledge, however, is what’s really critical, data analytics puts that power to work.

Those who understand, can interpret, and put data effectively to use will place themselves in very valuable positions.

Where Companies Using Data Analytics Get Their Information

The digital world is ripe with resources to gather big data. Companies frequently use their own customer database to gather information. Involvement in loyalty programs is another resource as are surveys, incentives, and contests. Consumers are often willing to trade information for a perceived benefit like a discount. Then, of course, there are shared resources with organizations sharing information that can be of mutual value. Entire business structures have been built on the gathering and sharing of consumer information and data analytics.

It is important to remember to ensure that the quality of any data used in business analytics is as pure as possible. Companies need to be able to rely on the lineage and DNA of the data that is analyzed to make the most confident, viable decisions.

Data Analytics Examples in the Real World

There are plenty of real-world data analytics examples, many of which are apparent when using the product. Netflix, Amazon, eBay, and Facebook use of analytics is obvious. In these cases, analytics have been automated to provide immediate feedback to consumers to encourage further use or purchases and to provide maximum value for advertisers. In the case of Netflix, it is estimated that 80% of viewing decisions are impacted by the company’s recommendations. You can bet they are focused on increasing that impact.

There are many instances where big data analytics is driving sales and maximizing profits for more traditional business segments like insurance, banking, automobile sales and in the medical and pharmaceutical industries. Data analytics is even now being used throughout major league sports. In fact, the 2012 Academy Award-nominated film Moneyball took an early look at analytics in baseball.

It is interesting to note that in very competitive industries like fast food and soda, the importance of data analytics is enhanced. This is due, in part, to the amount of money involved and how a small shift in market share can make such a powerful impact. It is estimated, for example, that the Coca-Cola Classic brand held a market value of over 66 billion dollars in 2017. What is it worth if a .25% or .5% shift in market share can be gained through data analytics? In 2018, McDonald’s generated total revenues of over 21 billion U.S. dollars. How valuable is data analytics if it can move that needle upward just one percent? It would result in an additional $210 million in sales.

Analytics is everywhere and this is creating lucrative career opportunities in a variety of businesses.

A Career in Data Analytics

According to the U.S. Bureau of Labor Statistics, the percentage of job opportunities in big data and data analytics are expected to grow by double digits over each of the next five years. This compares to a 7.4% expected increase in all other occupations. Specifically, Operations Research Analysts are projected to grow 27.4 percent over the next decade, as they benefit from big data.

It’s clear that businesses today rely on data. Position yourself for a successful career in data analytics when you earn your Master of Science – Data Analytics from JWU. For more information, complete the Request Info form, call 855-JWU-1881, or email [email protected].

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