Because more consumers are using online platforms to conduct transactions and research products, organizations have access to more real-world business data than they ever had before.
Social media comments, online clicks, and customer surveys, and other data-driven platforms have given thousands of businesses large amounts of data that deliver insight into customer behavior and purchasing patterns.
In-house, companies use artificial intelligence software to collect and centralize sales and operations data into one location, allowing a business analyst to view employee performance and assess inventory management. In short, the power of harnessing big data to gain actionable insights into complex problems cannot be denied.
Read ahead to learn how a company uses business analytics and data analysis to optimize business operations
BA Growth and Importance:
Real-Life Examples of Business Analytics
By employing an intelligence system to drill down into customer, financial, and sales data, companies can gain a greater understanding of their strengths and weaknesses. This allows involved stakeholders to eliminate inefficiencies and make better choices that increase the quality of outcome and improve customer satisfaction.
As a result of utilizing data science and data mining strategies, organizations improve their marketing and sales strategies, enhance the customer experience, find new target customers, optimize the supply chain, streamline internal workflows, and standardize best practices.
When employing BA software solutions as part of a larger business intelligence strategy, companies can replace manual processes, gain a competitive advantage, increase worker efficiency, and optimize business decisions.
Here are a few analytics examples from businesses who have leveraged analytics business BI tools as part of an overall growth and optimization strategy-
HelloFresh is a meal kit delivery company that used business analytics software solution to improve digital marketing reporting.
Originally, marketing business units were analyzing data sets on Excel spreadsheets. This information was collected from a variety of separate databases before it was inputted into Excel.
Because the information had to be consistently inputted, aggregated, and assessed by workers every day to gain insights, the company was wasting valuable time and resources.
HelloFresh used a business intelligence business solution and big data analytics to centralize all of the separate locations' reporting information into one data warehouse.
Team leaders developed a set of KPIs to show each location's progress towards meeting specific goals, with automatic alerts sent to involved stakeholders every time there was an update. As a result of being able to see and manage real-time information, the company has optimized its sales/marketing strategies and responded more quickly to shifts in market trends.
REI is a co-operative outdoor retailer that purchased a business analytics intelligence platform to assess co-op member data.
Because co-op members contributed to the majority of profits, tracking their retention and activation rates was essential. REI originally utilized Excel to track their members' data, resulting in less accuracy, wasted time, and misplaced resources.
A business analytics solution centralized all data into one warehouse and allowed stakeholders to use a set of KPIs to track members' data. As a result, REI has developed new membership programs, increased retention rates, and acquired new customers.
Coca-Cola is a large global bottling partner that employed a BA platform to improve reporting processes.
Originally, Coca-Cola was manually collecting and analyzing large quantities of sales and operations data, which forced employees to work an extra 260 hours per year. Data was placed in several different databases, which made it difficult for staffers to sort through and perform analysis.
By implementing a business intelligence system, the organization automated manual processes and allowed the sales team to access customer relationship management data through dashboards that gave immediate alerts when an update occurred.
The leadership team was able to use an intelligence BI system to access real-time numbers each day and correct inefficiencies so employees could focus on more important activities.
Decision-makers used business intelligence BI tools and data visualization to gain greater insight into daily operations and employee performance. Everyone spent less time generating reports and more time strategizing to increase profit, build marketing outreach campaigns, and find new customers.
Chipotle Mexican Grill is a global restaurant business that implemented a BI tool to increase the visibility of performance metrics across different locations.
Chipotle was initially using another outdated and inefficient analytics business intelligence platform to collect and track their sales/customer data. Because data sources were not centralized into one warehouse, it made it difficult for team members to analyze the information they were collecting.
The company upgraded to a newer, self-service business analytics platform that centralized all data in one place, creating dashboards for management to access across multiple locations.
As a result of the improved access to data, stakeholders were able to quickly generate reports and develop insights that helped increase profits. It also allowed users to drill down into employee performance to see which team members and business units needed improvement.
5. Des Moines Public School
Located in Iowa, Des Moines Public school employed business analytics to replace tedious manual Excel reporting processes and improve attendance monitoring.
The school collected large quantities of information from various data sources, housing them in separate warehouses. As a result of inputting data into Excel, there was a decrease in accuracy and efficiency across the organization. It was more difficult to combat dropout rates and attendance problems when management couldn't gain a clear view of student data in one centralized location.
A business analytics solution used regression models and predictive analytics to forecast which students were at risk of dropping out or not meeting attendance requirements.
The school then used preventative measures to improve their attendance rates and work with at-risk students and their parents. Teachers and other staffers had easy access to 5 years of historical data and current student data analytics, making it easier to intervene before a problem occurred.
Uses of BA in Schools:
In conclusion, here is a summary of business analytics in action-
- By employing an intelligence tool to gain greater insight into collected data, organizations can streamline workflows, increase efficiency, and improve profit margins.
- HelloFresh implemented a business intelligence tool to improve reporting, allowing them to create more optimized sales and marketing strategies.
- As a result of employing BA, REI increased retention rates and acquired new members.
- Coca-Cola used business intelligence software to gain greater insight into employee performance and operations data.
- Chipotle implemented a business analytics platform to generate new reports quickly, increase profits, and improve employee productivity.
- Des Moines public school employed a BA technology system to improve dropout rates and improve preventative measures.