We’re talking about data?
Yes — we are definitely talking about data.
Today, there is no shortage of opportunities to gather data on your business. From sales and engagement data to web analytics and customer profiling, it is likely that your business has already compiled a significant volume of information.
And this collection is relatively easy thanks to modern technologies.
So, what exactly is “big data”?
Big Data Defined
The term refers to very large, complex datasets that can be analyzed computationally to reveal patterns and trends in your business operations. It’s not a new term — the concept has gained significant traction with the growth of modern technologies since the early 2000s.
In the past, it was primarily large organizations that could harness the benefits of big data thanks to their extensive human resources and capital.
This has very much changed over the last 15 years, and companies of all sizes can utilize data for themselves. It has actually become so easy to collect that most businesses have more data than they know what to do with.
And this is definitely a challenge. There are a lot of benefits that come from data analytics, but you have to know to take advantage of them.
A survey from Deloitte notes that “49 percent of respondents said analytics helps them make better decisions, 16 percent say that it better enables key strategic initiatives, and 10 percent say it helps them improve relationships with both customers and business partners.”
Having a better understanding of how organizations are positively impacted by analytics will help you make the most of your data.
So, what are the benefits of big data?
5 Benefits of Using Big Data
1. Data helps you make smarter decisions
As outlined above, there are so many available metrics to track from employee sales to customer engagement data.
The observable trends that can be pulled through analytics can and should play a direct role in the decisions your business makes. There are many factors involved in decision making, and data analysis should support this.
Being able to visualize where your business has come from, and how it might perform moving forward, is extremely valuable to the decision process.
In fact, the UK SAP User Group cites a study from Oxford Economics in which 75% of executives in leading organizations agree that “decisions can be mapped directly to company strategy” thanks to big data. 78% said that “decisions are data-driven”.
By incorporating data into the decision process, businesses can make evidence-based choices regarding:
- Market expansion
- Retention — both employee and customer
- Customer experience
- Advertising expenditure
- Sales strategies
- Marketing strategies
This list is not exhaustive.
In any situation where decisions are being made, ensure you are not missing an opportunity to confirm or support your outcomes with data.
2. Data identifies the root of a problem
Try to think of a problem your business has faced… there are probably quite a few.
Now think about how you addressed the problem.
Most likely you used some form or source of data to help identify where the problem stemmed. This is one of the key advantages of tracking data in your business; identifying the actual cause of your issues.
In the same Oxford Economics study cited above, 62% of top executives stated their organizations were able to make real-time decisions thanks to big data.
What does this mean for solving problems?
Failures and operational issues can be addressed as they occur with a higher level of confidence. This means responses can be quicker and more efficient, contributing to a stronger bottom line.
Take a poor daily-performance in a restaurant, for example (tracked by the metric of sales).
By efficiently analyzing individual sales data, customer data, and promotional data you find that the only metric wavering from the standard is the sales of one hourly worker.
Now that the problem has been correctly identified, you can implement immediate action to help your workforce get back on track.
The only thing left to worry about is implementing the right solution, which once again should be backed by data.
3. Data allows you to understand performance
This benefit is straightforward but highly valuable.
By collecting data on multiple operational segments of your business, you create the opportunity to review and improve any organizational aspect.
Think of a professional athlete. They (and their team) are consistently and continuously tracking athletic performance. With the data collected, they can identify areas of improvement, allowing for future development and increased success.
In the workforce, this can be anything from a specific marketing campaign, to the performance of your frontline hourly staff.
4. Data helps you streamline processes
Poor processes burn your money.
Maybe your employee onboarding is lackluster, or your task flow management has unnecessary steps. In any situation, data plays a key role in achieving efficiency.
By addressing certain blockers, or lagging characteristics of your existing operations, changes can be made and money can be redirected into profitable practices.
5. Data helps you manage your workforce
One of the largest organizational issues — holding onto our talent.
This is where big data can play a huge role in managing your employees and improving retention rates. Our businesses collect so much data on our employees, but don’t utilize it to keep them around.
For some context on what metrics you’re probably already tracking:
- Employee sales data
- Employee scheduling
- Customer feedback
And many more…
With this data, we can scale and compare, giving us a better understanding of what is working and with who.
Picturing the application is easy.
Employee X has been showing up to work consistently late. You as a manager may not catch on, especially when overseeing large workforces (such as hourly workforces), but by analyzing timestamp data along with sales we can see that their performance at work has suffered because of this.
Without this process, the struggle the employee is facing may go unnoticed. Down the road, they are at risk of leaving because of it.
Big data gives us the chance to better manage our workforce, providing crucial insights for managers, and improving overall employee experience.
Okay okay, you’ve convinced me!
Most of us already understand the importance of data collection in our technology-driven world.
What can still be a struggle is finding the right way to use it.
By reviewing some of the direct benefits that come as a result of utilizing big data, we can attack our data with purpose.
But it can still be hard.
Thankfully, there are experts and software designed specifically to help your business tackle problems best solved by data. And at deepND, we always recommend to add a human edge to any data-driven solution.
Use data to optimize your workforce today!
To learn more about how deepND can help your business, connect with us at brianna@deepnd.io.
