Advanced analytics tools are changing the business world. It’s more than data, tables, and spreadsheets. It’s a way to predict your next move, win more customers and reduce risk. Here’s how we think about advanced analytics.
What Is Advanced Analytics?
Every company will define it differently. Some choose to emphasize the inputs – all the data you can analyze. Others want to emphasize the brand new insights you can pull from your data. At Blue Orange, here is how we define advanced analytics.
Advanced analytics is a combination of software and practices that transforms your data into problem-solving business insights.
Each part of the definition is significant, so let’s take a moment to unpack each piece.
Now let’s explore how advanced analytics can benefit your organization.
How Advanced Analytics Benefits Your Company
For advanced analytics to produce value, you need to connect it to your business problems and goals. To illustrate how advanced analytics can help your company, let’s focus on one of the most common business goals: acquire more customers.
By implementing advanced analytics, you can acquire more customers in several ways. Let’s assume you already have a website with 10,0000 visitors per month, and you have an active customer base. With advanced analytics, you can get more customers in the following ways.
What Keeps Advanced Analytics Projects From Succeeding?
If you have tried advanced analytics before without results, you’re not to blame. Implementing this type of advanced technology is not easy. To make this type of project succeed, there are three barriers you need to overcome.
Barrier to Advanced Analytics Success: Choosing the wrong business problem
Advanced analytics has its limitations, like any methodology. Put, it is better at solving some problems. There are proven analytics strategies to improve sales and marketing problems with analytics. Likewise, you can improve operational efficiency and supply chain problems. However, if your problem relates to leadership, company culture, and other qualitative issues, it may not be the right solution.
Barrier to Advanced Analytics Success: Focusing on poorly developed analytics questions
The questions you ask shape the answers you have with analytics. For example, if you focus on trying to find tiny improvements, you are unlikely to generate significant wins. For the best results, we recommend basing your analytics questions on business goals and analytics best practices. Let’s illustrate how to overcome this barrier with an example.
Ineffective question: How do we make more money?
Effective question: How can we increase the percentage of customers who purchase a 1-year product warranty?
Barrier to Advanced Analytics Success: Failing to act on analytics insights
When you receive a data insight that goes against your habits or the traditional way of doing business, what will you do? If you are like most companies, you will ignore the data. Sadly, this is a common problem. In 2019, the Harvard Business Review reported the following findings based on a survey of C-level executives:
If your technology team builds an advanced analytics capability and executives ignore the results, you cannot be surprised by the results. Solving this barrier does not require different technology. Instead, it requires a champion – a senior executive willing to take chances on advanced analytics.
The Path To Advanced Analytics Success Starts With Blue Orange
You don’t have to solve these barriers to advanced analytics success on your own. Reach out to Blue Orange today to discuss how we can address these challenges for you.