Edtech startup businesses are slowly taking over the traditional education sector and are replacing it with a technology-driven one. There is no doubt that this makes good use of technological resources and uses a modern approach to improve understanding and learning outcomes. Startup companies, in general, commit a lot of mistakes during their initial years. A startup firm is established under one idea, that one single belief that is supposed to change the world. But, sometimes, newcomers fail to understand the working mechanism of a business, especially a startup, thus, leading to its fall.
What is Business Analytics?
Business Analytics is one such mechanism that proves its importance in the proper functioning of a firm. It refers to the thorough analysis of skills, technologies, practices and incessant investigation of the business performance to come up with new improvements and gain insights on how to proceed efficiently. Business analysis tries to interpret the business performance based on data and statistical methods. So all the future decisions regarding the business come after a successful business analysis. Now, business analytics disintegrate into two components viz. business intelligence and statistical analysis.
1. Business Intelligence covers the research on historical data to analyze the performance score of the management team, staff, and the business department. This helps the startups to relate the efforts of the company with its outcomes. This further brings out the area of focus and improvement.
2. Statistical Analysis involves the use of predictive analysis using statistical It is useful in figuring out the future performance of the product. Statistical analysis can also harbor advanced analytics techniques like cluster analysis to develop customers group on the basis of similar characteristics hence targeting marketing campaigns. Key performance indicators are tracked by descriptive analysis
How Would An Edtech Startup Benefit from Business Analytics?
Startups start with an idea. That idea is the basic driving force behind the inception of that company. Every thought, interpretation, decision, and action revolves around that one single idea. People work day and night to make that idea a reality. But coming up with a unique idea is not going to be sufficient in running a business, especially an edtech one.
Edtech startups implement the growing technological resources to come up with easy solutions related to the educational sector. So an organization should create a target audience, be familiar with the needs of the audience, and develop their products accordingly. But the process does not end there. The whole procedure can be analyzed and examined by conducting business analysis to find out the faults and improvement ambit. Edtech firms (targeting important exams like UPSC, IAS, IES etc.) can put the cluster analysis into action and acquire a very specific target audience. For example, for students who are looking for colleges to join a postgraduate course in journalism, this can help in developing marketing strategies to bring that portion of the population who are keen on pursuing a post-graduate degree in journalism.
The constant analysis of workforce and management will guide the edtech sector into coming up with improvements in their approaches.
Research indicates that 56% of SMEs infrequently check their business data while 3% have never even looked at it. Edtech firms can highly benefit from business analytics because this shows a path to better decisions, better cost-cutting solutions, and profit margins. Business analytics discover hidden solutions and patterns that can help in efficiently shaping up the future of the edtech business.
It has also been noticed that edtech startups do not frequently analyze their data because they are occupied with other tasks which are understandable considering the fact it is a startup company and may not have many employees. Startups still need to grab the importance that data analysis provides and they need to devote their time and energy in that. They might not be able to hire an analytics team unlike large organizations, but an essential understanding through business analytics courses can help define a strategy that accentuates the growth and development of the organization.
It also may happen that startups hold back data analysis since they believe they have comparatively smaller datasets that would not bring out much. But they need to understand that this is not true. To be honest, the small size of edtech startups works in their favor as compared to large organizations. They face fewer queries that enable them to focus on specific problems. But startups should keep in mind that improper assessment and analysis of data can have bad repercussions on the business, and hence, they should always be aware of how to conduct business analytics for their organization. With the evolving technologically competitive world, edtech sectors need to structure themselves uniquely to gather and reach a wider audience.