Advanced analytics means using sophisticated techniques and modern tools to automate the process of diving deep into available unstructured data and go beyond traditional business intelligence to get deeper insights, understand patterns, make predictions, and aid strategic decision-making. Some of the common advanced analytics techniques include data mining, machine learning, semantic analysis, sentiment analysis, multivariate statistics, simulation, and neural networks.
Four types of data analytics
Depending on the level of sophistication of the analytics techniques, four categories of data analytics are:
Descriptive analytics is the foundation of advanced analytics, using the simplest tools and techniques to answer the question, "What happened?".
Diagnostic analytics focus on "Why did it happen?" allowing you to identify the root cause of an issue. And by investigating correlations and causal relationships between different variables, it also allows you to understand how the market might respond to some strategic decisions.
Predictive analytics allows you to answer, "What is likely to happen in the future?" using historical data and market trends. Answering this question can help you future-proof your strategic direction.
Prescriptive analytics attempt to answer the question, "What should be the next step?" and get the results you want. It evaluates historical and real-time data to suggest data-driven actionable strategic steps to ensure success in the data economy.
Benefits of advanced analytics
And with the treasure trove of insights available with advanced analytics, you get numerous benefits like
With a rich understanding of market forces, you can leverage advanced analytics to draw quick insights from the available information to aid your strategic decision-making.
In today's dynamic business environment, advanced analytics allows you to be agile, anticipate potential changes, and respond to them quickly. Thus, allowing you to capitalise on market opportunities as they emerge or change your action plan in the face of potential risk.
With better decision-making, improved risk response and greater agility, you can streamline your business processes, operate more efficiently, cut costs and maximise revenue for a greater ROI.
Higher customer satisfaction and retention
Advanced analytics are integral in understanding customer expectation trends and behavioural patterns. These insights can help you quickly respond to changing customer trends to ensure better customer experience and higher customer satisfaction and retention.
More efficient risk management and mitigation
The ability to predict and simulate any number of situations and market conditions is a key feature of advanced analytics. And with the information about the likely outcomes of any hypothetical scenario, any unexpected circumstances are less likely to blindside your business, and you are ready to respond to any potential risk scenario.
With advanced bpm data analytics streamlining your business processes and giving you actionable data-driven insights, you can focus more on developing insight-based strategies to build sustainable competitive advantage.
With the tools to gather and integrate data from multiple sources and share it securely, you can empower your employees to take data-backed well-informed decisions and contribute towards business growth more effectively.