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Data AnalyticsDriving Business Value with Data Analytics

Driving Business Value with Data Analytics

Decisions driven by data analytics have continued to be an important part of business value creation. Moving from collected data into actionable insights helps to improve the ROI. As spelled out in a report by Deloitte. In 2020, the principal principle guiding the movement from 2021. And onward will be dependent on a researched-based approach and not on instinct.

In fact, one of the high points of the research was that leaders need to discard all forms of decision-making based on instinct. Rather, they are encouraged to focus on data-driven decisions. A clear migration from making decisions by the gut to an approach. Based on the data decision-making approach is imminent for professionals in the private equity sector. Therefore, it calls for a change of strategy. Decisions driven by Data analytics avails a well measured and managed approach which reveals the often. Lost opportunities and wasted assets experienced by the company.

How Data Analytics Provides an Advantage in Driving Business Value

To prove the efficacy of a data-driven decision mindset, over 1,000 senior executives carried out a survey on PwC. And the findings were that data-driven companies and organizations are like to record great decision-making improvements up to three times.

In another established statistic, data analytics avails a great opportunity for private industries and companies to lower their operational cost (if need be). Build a strong and viable customer base, and increase their revenue in the process.

To achieve these successes through data analytics, the following points must be considere:

A firm or organization driven by data-based approach are likely to record more customers than their counterpart who does not. A recent study from A University in Texas has shown that a 10 percent increase in data usability could lead to a whopping revenue increment of a 1000 average company by more than $2 billion.

Note that even when data analytics avails a firm with the right opportunity for growth, it is always overlook.

Recent research has also shown that 95% of firms and businesses are plague by unstructured data. And employees up to the range of 63% are having problems gathering data within their given timeframe.

In recent times, only 31% of agencies, as well as companies, are identified with data-driven decisions. This was a decline from 2017 which was 37.1%.

With all these benefits being said, only a few firms are able to make use of the data available at their doorsteps. And thus the few companies that are data-driven always have an edge over their counterparts.

How Data Analytics Impacts the Investment Lifecycle

In all the phases of the lifecycle of investments, data analytics avails companies. And firms with the needed insights to maximize and deliver on Return on Investment(s) – ROI.

Driving Business Value with Data Analytics

Investors are also vested with the duty of forecasting and pre-acquisition but with the revenue surrounding the pipeline data. And as well as the number of revenues the company tends to keep after post-acquisition. When the runway is limite, then there is a great risk of being negative with the cash flow. The company is also saddle with the responsibility of finding out the revenue-generating power of each customer before the pre-acquisition and this is make possible by the analysis of the data before the company.

Adding to the generating revenue power, taking account of the structure of expenditure is another important factor that is to be considere in the analysis of pre-acquisition. This means that companies and firms must take note of these expenses before delving into acquisition and the data is also a major requirement for the next level.

Also note that data on pre-acquisition could be limite based on:

i. Data access

ii. Pending sale knowledge

With this in mind, data analysis does not only become important but also a priority when a company is about to enter into an investment and as well as the period of growth. All data portfolios must be compile holistically in order for the company or firm to discover new and great opportunities including a great yield of ROI.

Why Data Analytics is Needed for Value-Driven ROI

When changing firm behavior towards decisions driven by data, the leadership of companies should start looking at the greater picture of using data to maximize return on investment (ROI) as well as drive value.

Recent studies have shown that there are many outcomes that are positive from data analytics investment thereby leading to decrement in cost of operation and many more. NewVantage executives in their study in 2019, reveal the six core areas their company experienced good results after investing in artificial intelligence and Data analytics and thereby having a decrease in expenses ranging to 60%.

In a quest to drive massive outcomes from ROI, firms and companies executives must be able to give answers to the following questions on their companies portfolio- Which of the services or products are the most profitable? Which of the products or services is the bestselling?

Data Portfolios Firms must have Access to:

An index of services and products that is clearly define: Within a rundown of what firms provide. All information systems is to be classified using similar description and codes. This will in turn bring about a rate structure and pricing that is clear.

A repository of all the customers in a master list: Aside from the main master list of customers, it is also important for a company to have well-detailed information of the customers. Which will, of course, be recorde on different platforms with the same description for clarity.

Sales On Company-wide products: Companies must have and at the same time maintain the updating of their sales list. And this should be further break down into fragments if need be.

All Business costs: For the sale of any services or product, it is important to know both the amount sold. And the delivery expenditure of the said product or service.

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