Analytics is not an unheard term in the current scenario. Right from the business of a small firm to a tycoon, analytics find existence everywhere. So, it is futile to attempt at explaining to you what analytics actually mean. Rather, let us take a look at its core concept and how it has become a part of every business strategy quite unintentionally at times!
In nutshell, we can refer analytics as scientific analysis, considering which a business entity can arrive at a concrete decision regarding market behavior, trends and potential openings. This necessitates taking references from realistic events, gathering time tested data and records, and making assumptions of the past performances of the entity itself as well as the competitors. Thus, it does not need any further explanation that the derived results after analyzing these sectors are qualitatively upgraded and highly dependable.
The History
You will certainly be amused to know that considering analytics as a part of business strategy is not a new trend. It had its presence way back in 19th century when Frederick Winslow Taylor implemented time management in work culture as a part of analytic research. However, the boost came in 1960s with the invention of computers as analytics got evolved, thereby giving rise to Electronic Resource Planning, data warehousing and incorporation of plethora or hardware and software applications with the research.
The Present Scenario
With the full fledged implementation of analytics in today’s business strategy, firms and entities are in a better position to give a confident answer to questions like: Which is the most potential area to tap? Who are the most potential as well as profitable customers? Which of the target groups will emerge as the most revenue generating one? How to channelize efforts, products and services to earn more profit from customers?
Analytics helps in the implementation of the right moves that increase chances of sure shot success. For instance, a company which sells credit cards will preferably try to segregate its customers on the basis of credit risks, and make offerings according to customer profiles. Similarly, another firm engaged in online movie service will try to make a survey on the movies that will find instant acceptance among its potential customers. As soon as it succeeds in listing down such ‘sought-after’ movies, it will be able to earn greater profit by offering the same to its target group.
Thus, although unpredicted outcome is not uncommon, historical pattern forms the major framework on which analytics is done. This calls for statistical analysis of business related data and practical findings, operational research, hypothesis of mathematical probability in business and skills of sure shot prediction.
However, this also needs to be mentioned that although the idea is simple and intuitive, depending solely upon analytics for booming business is immaturity.
We, at Market Quotient, have a clear understanding of what the business needs to boost its profit and how analytics can be applied. If you are interested to know more about our analytics expertise, then please feel free to write to us at contact@marketquotient.com
