Data sets, both big and small, are vital for answering critical questions and developing business strategies. Data offers the insights which help organizations analyze the market, and their position within it, to form better and more informed strategies and run profitably. For many small businesses, turning a blind eye to the details is much easier and sometimes less expensive than manually tracking them. Spending a few extra dollars here, or taking a discount for early payment there probably has little effect on the overall bottom line, right? Wrong. Over time these small overlooked expenditures change the rate that your business grows, and even as you grow slowly those overlooked details create a bigger impact. It’s important that businesses don’t overlook the details, no matter how insignificant they may seem, and using data to drive decisions will lead to growth and profitability.
Of course, manually managing the data is good, but just not good enough. Forward-looking analytics are required that make use of data to manage small to large parts of operations. For instance, analytics for managing AR and AP, overseeing inventory, or tracking project progress will keep you focused on details that affect your bottom line. To gain a strong competitive edge over your opposition, it is important that you include technology tools right from the start. The importance of a data-driven business stems from the incorporation of technology, and profitability is a natural progression, of course.
It has been observed in various case studies that companies making data and analytics part of their daily business operations witness productivity and profit gains go up to 5-6% above their competitors who are not. There are ample reasons why. First of all, a data driven business will make better predictions, have more transparent operations, and quickly test strategies. The initial investment is the only hang-up that may be stopping small businesses from adopting the technology that can provide data driven insights.
The strategy to bring data into business operations will comprise three basic elements: analytical tools, data, and analytical models. The successful implementation of these three elements to achieve the business goals will definitely result in a profitable venture for organizations, small or big. The ability to watch over all of your projects, your money, and your business is priceless.
Industry predictions state that big data has opened new streams of information for businesses. They can use the data to analyze not only the operations, but also customer management through analyzing customer purchasing habits. Recently, Hitachi Data Systems purchased Pentaho. How does that relate in this context? Well, Pentaho is an open source data integration and analytics company. It is just one of the example that shows the growing importance of technology in making data management systems more efficient and responsive to the requirements of their customers.
Similarly for TRXio, the inspiration to bring data management and analytics into our cloud based technology platform, was derived from our desire to earn profits from a smart, easy-to-use inventory management system. We found that the fastest way to increase profit margins at present is to manage the assents that are already present. Our main objective was to reduce and identify inventory loss and keep control over the inventory in real time. Analyzing data and utilizing it to eliminate waste, increase efficiency, and focus on details has helped us increase profitability.
It’s evident that today’s business world is moving towards data analytics when it comes to inventory and other project management. The benefits for every business is worth the initial investment in technology.
Experts agree that Data Driven Business = Profitability. Do you?