Recent years have seen a paradigm shift in the market, giving rise to a major overhaul in ethos of business and growth. With the advancement of technology, and more organisations going digital over the past two years, business analytics has emerged as the need of the hour for entrepreneurs. Mr. GV Sanjay Reddy, Vice Chairman, GVK, believes that intelligent business analytics and data-driven culture is the future of the industry. He elaborates on why it must be implemented, and how can it help the companies.
How Does a Business Benefit By Deploying Business Analytics?
As GVK Vice ChairmanGV Sanjay Reddy explains, “Business analytics is the process of analysing data and statistics using a combination of technology, specific skills and practices. This provides essential insights into performance and helps businesses make the right moves for more effective processes.”
Business analytics offers a valuable insight into data that a company can understand, and plan their future for better growth. This translates to an unprecedented increase in efficiency and growth. GV Sanjay Reddy, the Vice Chairman of GVKremarks, “With the use of business analytics, 64 per cent of businesses have seen an improvement in productivity, 56 per cent businesses enjoy quicker and more effective decision-making abilities, while 51 per cent have seen a direct increase in profits.”
Business analytics is divided into four types of processes, each with a specified function towards the end result. Descriptive is the simplest form, which sums up all the existing data to interpret the past and present actions to assess trends or patterns. “Sorting and sifting through massive volumes of data to collate them into useful findings is the first step towards effective business analytics”, says GV Sanjay Reddy, the Vice Chairman of GVK.
Prescriptive is another process of business analytics, which makes use of the data of the particular issues and recommends actions that will help prevent poor, inefficient outcomes, and thus, improve productivity.
The Diagnostic form analyses the company data and insights to examine and detect areas, which have a scope for improvement. It can be used to dig into the root cause of past mistakes or poor performance issues.
Predictive analysis makes use of machine learning and statistical models to predict the future outcomes of specific actions and processes. This utilises the data collated by descriptive analytics to assess and forecast the likelihood of future consequences.
Decoding The Elements of Business Analytics
Multiple elements come together to create successful business analytics and strategies that exhibit effective results. Big companies, such as GVK , make use of a combination of these to optimize their processes.
Data mining techniques sift through bulk data to figure out patterns and trends that often skip through the regular machine learning systems. GV Sanjay Reddy explains, “Data mining predicts customer preferences and choices, which helps a company create better products and services.”
Text mining collects and studies all texts over apps as well as internet sources. They could be in the form of blogs, social media posts etc., and help to extract and procure valuable information. GVK Group stresses on the importance of text mining to assess their performance.
“Data visualisation takes all the collected data and insights to present it in the form of neat visual aids, such as graphs and charts,” says GV Sanjay Reddy. He adds, “This makes it incredibly easy to interpret the information at a glance.”
Further, data aggregation collects all the necessary information, centralises it to a designated source, and filters to remove inaccuracies and redundancies. This helps in presenting it in a coherent and useful form, which can be further analyzed as per the requirement.
Forecasting is an important business analytics tool that reviews past data to prepare a blueprint and predict the probabilities and outcomes. The technique is particularly used for setting up goals, budgets, and anticipate changes in the market. It can offer valuable insights into customer behavior and sales during holidays and events, helping companies prepare in advance.
GV Sanjay Reddy observes, “Business analytics is the tool that every modern company needs. As per the last year’s survey, not only has it increased the profits by about 8 percent, it has also brought down the costs of operation by around 10 per cent.” He adds, a good operating margin is the formula to success. With its intelligent and effective processes, business analytics is indeed the future of the industry.
Source: The India Saga