Data-driven strategies are integral to enabling digital transformation and adapting to an evolving business environment. After all, data is what helps organizations to stay informed and agile in the face of ever more dynamic and complex markets. However, businesses often face challenges in translating data into workable decision strategies, especially if they’re operating in a siloed environment and haven’t fully embraced the power of data-driven decision-support tools. In fact, 87% of marketers outline how data is the most “under-utilized asset” in their organizations.
This is precisely where well-planned and executed data analytics can help businesses to take a leap forward and succeed at digital transformation.
Relationship Between Data Analytics and Digital Transformation
Notably, an effective digital transformation entails much more than the implementation of digital tools. It is a combination of sophisticated technology that collects and orchestrates the data and then uses the data intelligently to inform the organization. Finally, it combines data insights and technology to deliver superior data-driven brand experiences and achieve high-end digital transformation.
According to a report, 90% of businesses believe that big data analytics serves as a key to digital transformation initiatives. Adopting defined analytics within the business processes enables various aspects of digital transformation.
Role of Data Analytics in Digital Transformation of Enterprises
The leading enterprises leverage big data analytics to gain advanced business insights and achieve competitive advantage. They use data analytics to enhance core operations to transform digitally in many ways. Here’s how:
Transform Customer Relationships
Customers are a crucial asset for every business, and observing consumer behavior is vital to achieving loyalty. The more data collected and analyzed by the business, the better it can identify consumer behavior patterns and trends and make informed decisions. With proper data analytics mechanisms in place, businesses can derive crucial behavior insights required to retain their customer base effectively. It also helps businesses to optimize service offerings and improve customer service.
Emphasize Financial Planning for Effective Resource Utilization
Digital transformation initiatives span multiple departments as well as business functions. The costs can trickle down quickly if the business is not careful enough to manage it. Hence, financial planning is an imperative part of digital transformation that can help the business to align its resources with its goals. Through data analytics, businesses can identify cost drivers, forecast spending and the associated financial implications, and formulate strategies to overcome cost impediments. In fact, through the journey, the data analytics platforms can also track fraudulent behavior and reduce the chances of embezzlement and fraud.
Promote Smarter Enterprise-Wide Decision Making
The idle information lying within the enterprise systems pertaining to the customer base, asset maintenance, delivery schedule, and employee payments can be put to use through data analytics. The analytics tools can analyze this information and recommend smarter strategies to make informed, inclusive decisions.
Realize Better Operational Productivity
Businesses constantly look for innovative ways to increase productivity. Data analytics can help realize that by facilitating process improvements, particularly in areas such as hiring, production planning, asset maintenance, etc. Such improvements can help pave the way for end-to-end digital enablement, assisting businesses in navigating the complexities of digital transformation.
Facilitate Better Product Management
Often, businesses have an array of products and services on offer. So, analyzing the performance of these products and services is vital. The popularity and sales, for instance, can vary according to season, region, and other related factors. The data analytics function can help gain real-time insights into product and service performance, identify the bottlenecks if any, and devise product management strategies that result in faster and better product or service deliveries.
Enhance Utilization of Technologies
Effective data analytics can help enhance intelligent automation systems, including chatbots, digital assistants, and automated analysts, to improve customer interactions and facilitate profound operational analysis. Such systems can help businesses anticipate customer needs and provide personalized, contextualized solutions — all while strengthening the digital footprint and resilience.
Create New Revenue Streams
Data analytics enables businesses to make business improvements based on identifying market inefficiencies. For instance, companies can analyze the data pertaining to their products, services, and customer’s preferences. This can empower them to redefine offerings and explore new opportunities for product innovation. In sum, customer data insights can enhance an existing product, help discover new revenue streams, and achieve high-end digital transformation.
Reduce Go-To-Market Costs
Most businesses depend on geo-analytical data to develop relevant go-to-market strategies. With advanced analytics in place, businesses can not only forecast location-specific opportunities and respond more effectively to customer needs but also assess the profitability and financial viability of new markets. All of this data can help a business optimize its go-to-market strategy and reduce cost and the time taken to reach customers, thereby achieving higher ROI.
Nurture Effective Branding Strategies Along the Way
Data analytics help businesses create fruitful marketing and advertising campaigns. Use cases like sentiment analysis help in uncovering valuable insights about potential customers. With precisely targeted and personalized campaigns, they can save money by reducing customer acquisition costs. Moreover, analytics can evaluate the performance of brand strategies and campaigns over time. These insights can help the business to reevaluate and continually improve its brand strategy – in line with the changing consumer expectations and the envisioned digital transformation goals.
Drive the Future Digital Transformation with Data Analytics
As businesses move ahead in their digital transformation journey, it is essential to leverage data analytics for real-time insights into business performance. This will help them gain further clarity into their digital transformation goals while aligning resources and investments with the opportunities and threats.
In fact, data analytics must be the first step of the digital transformation journey as it provides the right tools and technology to gain actionable insights to drive internal and customer-facing strategies.
Looking to get started with a full-fledged data analytics solution, contact us to help you get off the ground faster.