The undisputed growth of data has harnessed the technology of data analytics with continuous development in its tools and solutions. Thanks to technologies like IoT and others, not only the data has enhanced in quantity but also in quality gaining richness and diversity over time. It has been observed that in a day around 5 billion searches are made and nearly 294 mails are sent. Also, Facebook creates 4PB of data every day and even a single connected car produces 4Tb data per day. Interestingly the numbers don’t stop here, by 2025 it has been forecasted that around 463EB of data will be generated every day.
According to McKinsey, ML has rapidly advanced in context to analytics increasing the investment in massive computing clusters. Such clusters are often accessed as cloud services contributing to a steady improvement in computational power. This preps up the stage for the strategic and creative upsurge of data analytics.
The consulting company also found out that there exists a huge disparity in performance between a small group leading organizations and average companies.
Moreover, a study by SAS has revealed that 72 percent of companies confirmed that data analytics helps them develop valuable insights and more than 50 percent of them said that their analytics resources tend to make them more innovative.
As business leaders are employing the technology to generate more and more revenue, data analytics is transforming the competitive landscape while entering new markets, change the relationship with customers, and accelerating efficiency.
When it comes to customer relationship, digitizing customer interactions also provides a pool of information for marketing, sales, and product development. With the boon of data analytics in customer relationship management genre, it becomes easy to architect new systems from the base than it is to recondition existing ones. Transformational leaderships have also honed the capabilities of data analytics to improve the core operations of their businesses.
Additionally, highlighting the advantage of data analytics in terms of return on investment, the benefits of its capabilities are profound. According to McKinsey, on average, those who invest can expect productivity gains of 6-8 percent.
When most of the companies are trying the approach of overhauling, innovative companies need to develop a solid strategy for harnessing the power of data analytics. Once the technology is embraced within the core strategy, the focus increases on promoting a data-driven culture within the company.
Murli Buluswar, chief science officer at AIG said – “The biggest challenge of making the evolution from a knowing culture to a learning culture – from a culture that largely depends on heuristics in decision making to a culture that is much more objective and data-driven and embraces the power of data and technology – is really not the cost.”
Netflix, Google and Spotify like data-driven companies who have seriously invested in cloud data analytics, became successful in transforming their culture while maintaining agility to AI technology. As AI has developed itself up to a level of bleeding edge of customer insight and experience. It also proves that investment in data analytics is now extremely critical on non-negotiable terms.