“Without big data analytics, companies are blind and deaf”
Purely perfected statement befitting today’s era. With data, an entity is empowered to scan its processes closely and to carry out necessary refinement to emerge more competitive. Data has umbilical association with every device communication, process and function and is integral to the supreme thought of overall digital transformation.
Even the Harvard Business Review magazine holds data as one of the crucial pillars to any digital transformation efforts, others being technology, process and an enterprise’s capability to involve change. Now, if technology is the driving factor to any digital transformation, data has to saturate it with necessary fuel. Clearly, if our fuel is of suboptimal level and is contaminated, road to transformation wouldn’t be so smooth, in fact, would never start.
Besides, other than the aforementioned journal, certain study was carried out by Gartner too, which uncovered the fact that 87% operate with sub-standard analytics and are lacking in Business Intelligence also, outlining the fact that deft guidance and support about data utility isn’t there. Clearly, such factors can combine to thwart efforts of data transformation.
Hence, this article aims to answer any of the queries related to data analytics and how pivotal is it in ensuring complete digital transformation.
What on Earth Is Data Analytics and how could it be critical to digital transformation?
Now, before getting into depth about it, this becomes crucial that we ought to consider a couple of terms which are deeply linked to business environment of today. Such are not the words in common terminology but have potential to prevail upon the existing and future performance.
When and how should we define Digital Transformation?
A business enterprise comprises key processes to accomplish tasks and certainly, there is involved a method of doing it which can be digitally advanced or involving outdated technology or even can be nothing on par with changing tech environment. Now, referring to digital transformation, such is checking upon the tech involvement or its degree with an organization, how skilled is its workforce and how much saturated are its processes with it.
Digital Transformation is no longer a trending term now, as it was years ago. Now, this has become a dire necessity that every business has to adapt to, to remain competitive. Moreover, in times of pandemic, its significance has risen to new heights owing to its hidden potential. As we spend more time on digital platforms nowadays, and many among us are consumers too, businesses need to get their efforts digitally sound.
What Is Digital Transformation?
For sake of occupational competence, tech innovation holds the key and not only the general businesses but even the leading players of technology give way to digital stride. For instance, Google races to become AI-first, IBM digs deep into key technologies such as AI, IoT, Cloud computing and so forth.
Nonetheless, we should keep in mind that every business lays hands upon digital transformation from different point and perspective and therefore, understanding the term “Digital Transformation” is different to them. In other words, business processes need to be understood pretty well on the grounds of digital maturity when it comes to understand this, from their perspective.
Such is the practice of analyzing data on which judicious business decisions are taken and data remains central here, in fact, such is everywhere. Majority of our activities leave digital footprint, which is called data, such as when customers browse constantly, scrolling and tapping, data is put into machines to seek information, or when the human workforce interact with automated machines and so forth. Such can in a structured form or unstructured.
Now, when we implement data analytics, it intakes all types of raw data and useful and meaningful information is the output. Certainly, we can get to know about the customers’ behaviour, buying trends, urgent business actions needed, share metrics and so forth. Data analytics present a crystal clear picture.
At the beginning, data is collected and format is considered, following which, algorithms are constructed. Further, different sources are shaken for securing data and data organization occurs.
Finally, data is checked for any duplicate entries and such are eliminated right away and organized heap of data takes shape.
Gone are the days when data analysts would have to be checked for appointment and availability, but now, with Artificial Intelligence and machine learning based machines are there to analyze data and produce the critical and reliable insights rightaway.
What Role Do Data Analytics Play In Digital Transformation?
Not surprisingly, data analytics is at the heart of optimized processes while digital transformation reflects optimization to reach end goals of advancement.
When an enterprise considers the journey towards digitalization, data starts becoming crucial in the entire process. When we interact with machines, data output is there, which empower us to set benchmarks, KPIs, workflows in the journey towards transformation while the entire processing and progress is monitored too.
Besides, numerous digital gadgets have arrived in consumers’ hand which output large amount of data and this makes data analytics more significant to us to help evolve digital transformation around.
Embedded Analytics Unravel Business Intelligence In New Form
This is every company’s wish that digital transformation should reveal more insights and for the purpose, it needs to be enmeshed into the systems so as to put actual digital transformation in effect that revolve around data. In other words, with digital transformation, we should not contain ourselves to collection, analysis and visualization only.
Truly, with the help of embedded analytics, businesses will be more advanced in serving to their tech-savvy customers, while data analytics equip businesses to make data-driven decisions with diligence. Not mincing words, utility of data analytics can be enhanced manifolds, when enterprises embed it and are able to efficiently perform customer-centric roles, alongside key business ones.
Further, one’s visualization is enabled easily, with it. According to one’s role, KPIs and daily responsibilities, analytics that are embedded unleash needed insights which simply replete their systems and workflows, in form of notification.
As such, one gets accurate information at right time to act and once this is done, everyone can be a part of the transformation process, making transformation faster. As workforce will make decisions based on data in their own capacities, an enterprise’s BI acumen will sharpen manifolds and it would thrill with profiteering.
There are many cases where enterprises make precise use of digital platforms that combines CMS, CRM and other platforms, which empowers them to refine customer experience. Every customer interaction feeds data into such systems which work on it and analyze it and unroll rich insights in quick time.
Also, in a sales funnel, it hardly matters, what stage a person stands at, purchase, intent, processing etc. these systems that have embedded analytics will empower enterprises to make optimized decisions in realtime, taking productivity and efficiency to next level.
Cloud computing has overwhelmed us at length for many years now and while marching towards digital transformation, cloud migration does play a vital role. Though, until 2 years ago, cloud strategy was not so much effective in any organization and no vivid objective used to be there for it. But today, around 68% of chief Info executives attach too much importance to it.
This is indeed amazing that Azure, AWS, Google Cloud have been the basis of Business Intelligence environments to many companies. Now, with data analytics which are accessible on cloud, every key person in an enterprise enjoy quick access to updated and accurate data.
Now, from data transformation point of view, its scale is widened when cloud is opted and roped in. From C-level executive to the salesperson at any store, data would be accessible to everyone and decisions would be smarter and timely.
Now, when cloud infrastructure is made, companies are saved from investing huge amount in brick-and-mortar infrastructure. It can involve the power of cloud computing by opting for cloud and time, efforts and resources are minimized too.
Additionally, in organizations, abundance of data is stored in silos and when we opt for cloud migration, such silos can be overlooked and data is accessible to everyone.
It is widely seen that for refined customer satisfaction and experience, corporations plan their business transformation. Today’s customers are more tech-enabled and use a range of gadgets like smartphones, which leave digital footprints.
Now, with technologies such as AI, ML etc. personalization is ensured and customers are served with what they wish for.
A PwC did a research study about consumers’ behaviour which clearly indicates that they would not care for any brand if any bad experience occurs and this makes it more essential for enterprises to entice customers and make him happy from brand and customer service point of view. As a result, here, the role and responsibility of data analytics rises to prominence:
No doubt, enterprises are empowered to accomplish a wide range of tasks when equipped with data analytics tools, such as the following:
1) To scan the consumer behaviour to understand about the methods they deal with the brand, such as channels used, time spent, objectives, product consumption and so forth,
2) To unlock key business areas where optimization can be thought of, and this is possible only though rich data insights and by breaking customers’ journey into stages for best analysis,
3) To anticipate consumer behaviour and to refine strategies accordingly and cater to them in best possible way,
Not surprisingly, equipped with critical data, we can easily maintain the best experience for our users and thus attract them, this is what is called brand loyalty.
Helps In Mitigating Risks.
No doubt, every new business module does bring risk and digital transformation is not separate, as business walks along transforming its processes and operations into more digital form.
With structured and reliable data, we can mitigate risks easily.
There exist tremendous amount of data comprising millions of bytes, with every organization in its systems which is collected from customers and through processes accomplished over the systems. Here, prior to initiating any major decision, data analytics can be relied upon to get a complete insight about any of the hurdles in way of processes and thereby help management in taking crucial decisions instantly. Apart from this, we can get to know about certain areas where automation can be brought in and where security layer is thin requiring exclusive care.