In the 21st century, there is a pressing need for businesses to stay at the forefront of the competition to be successful. Many organizations are boosting their abilities to make intelligent decisions that rely less on intuitions and more on data-driven insights. Rather than listening to their ‘gut feeling’ while making important decisions of inventory control, human resource management, and pricing solutions, companies are opting for analytics and systematic statistical reasoning to ensure better standards of risk management and profit-making.
Business analytics is now rising as the keystone of strategic business decision making. It allows managers and leaders to understand the dynamics of their organizations, forecast market shifts, and manage risks. There is a large number of diverse opportunities that business analytics offers to businesses today. Some of them are discussed below:-
Many businesses spend a considerable amount of time in analyzing consumer data to monetize available opportunities. However, it is equally important to focus on improving the organization’s productivity and performance. Data and business analytics can play a key role in eliminating inefficiency and streamlining business operations. It can improve the way businesses attract new talent while retaining the existing workforce. Companies can restructure their hiring processes by creating various data points such as professional history, education background, performance, and demographics.
Similarly, analytical dashboards and reporting can help leaders in identifying data correlations with detailed insights which are crucial to perform cost evaluations, pricing segmentation, and peer benchmarking. Along with this, managers can also measure key performance metrics across varied areas such as product innovation, workforce planning, and operational excellence to efficiently solve complex business scenarios.
According to research conducted by McKinsey, organizations that are employing their consumer behavior insights are outperforming their competitors by 85% in sales growth margins and around 25% in gross margins.
As we live in an increasingly consumer-oriented world, businesses are aiming to accumulate a vast amount of consumer information and data. To survive in the cutthroat environment, it is important to make efficient use of these consumer insights to shape products, services, and customers’ buying experiences.
Businesses should have a comprehensive and detailed understanding of their consumers through efficient market segmentation which can, in turn, provide managers an insightful narrative about their customers’ buying habits and preferences. Additionally, patterned consumer data can also generate valuable insights that can be used to direct marketing expenditures.
One of the most important duties of leaders is to ensure proper communication among various departments of the organization with the utmost transparency, rationality, and objectivity. In order to achieve long-term organizational goals and objectives, business analytics equips executive managers with information and insights which is necessary to create a well-connected environment with precise communication channels.
Setting up analytics success requires leaders to possess the right analytical capabilities and the ability to connect technical aspects of data management to business strategy. Managers with strong data analytics skills can effectively evaluate the current usage of analytics across the enterprise to address the existing gaps and shortcomings of the organizational operations.
In general terms, workforce planning is mainly about preparing for the ever-changing future by leveraging people’s information to add substantial value to employee management. With the help of business analytics, leaders can ensure that the best talent is hired into the company, combine attrition risk with performance data, evaluate the productivity of the entire workforce, and conduct employee benefit programs.
However, the task of building analytics into the employee management discipline is not an easy one. It is quite difficult for managers to develop the necessary analytical and critical thinking capabilities without any professional help. Enrolling in the right program can equip them with agile analytical abilities which, in turn, help them create a data-centric organizational structure for revenue growth.
IIM Calcutta is offering an Executive Program in Business Analytics (EPBA) which focuses on building competence in analytics. This would enable the managers to identify their most profitable customers, offer the right price, accelerate product innovation, optimize supply chains, and identify the true drivers of financial performance,and more. The 12 months long course includes a dynamic team of program directors, each from a core business area to build in more rigor & quality into the program. It is specifically designed for working executives with all the benefits of live interactive onsite learning.
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