Modern business cannot be imagined without the effective use of data. Data is one of the main assets of companies, allowing them to make more informed decisions, anticipate customer needs, and optimize business processes. In the context of rapidly developing technologies, business analytics systems, and data analytics services play a key role in transforming raw information into valuable insights. In this article, we propose to assess the importance of data in business and analyze how business analytics systems help businesses achieve their goals.
What Is The Role of Data In Business?
The role of information in the modern world is difficult to underestimate, now a person lives in the era of the information boom, the widespread penetration of information technology into all spheres of life. In business, data also plays an important role. Let’s consider the basic concepts associated with data in business, and also define the role of data in business.
Business data is collective information related to a company and its activities. This is any statistical information, customer data, sales data, and marketing strategy data.
Business data is an integral part of the development of any enterprise. This is information that an organization uses to make management decisions, optimize marketing campaigns, and develop winning ideas that contribute to overall growth.
A database is a part of information systems — software and hardware systems that store and process huge amounts of information.
Business and data are inseparable concepts. Since databases contain all the information that is available at arm’s length and a few clicks on the keyboard. Databases help business owners systematize information about their clients, employees, and partners, and also use it to make a profit.
Thus, data in business solves such problems as:
- analysis of the company’s performance;
- evaluation of current activities, making necessary changes;
- reducing expenses and increasing company revenues;
- correct choice of business strategies;
- new initiatives in the field of interaction with clients;
- planning marketing campaigns.
What Types of Data Are Used in Business?
The main types of data that companies use in their operations are:
- Consumer data.
This is any information that is related to a consumer or customer. In other words, this is the online activity of customers that leaves a digital trace. This can be personal information about the customer, customer interaction data, behavioral data, and other information.
- Analytical data.
Services of data analytics encompass information that a company collects for the purpose of analysis, such as web traffic measurement or search engine optimization (SEO). It allows a business to optimize processes such as marketing strategies and website content development.
- Facility data.
This is information that a company collects about its own products. This can include information about production quantities, sales numbers, and the effectiveness of its products.
- Marketing data.
Marketing data refers to data that a business collects about its marketing procedures or to solve marketing problems. Data about the state of the market and its components: participants, products, prices, conditions, and many others.
- Company personnel data.
This is data about the company’s employees, it can be both the employee’s personal information and the results of his work and efficiency.
So, the business is completely built on data. This is a huge amount of information coming from different sources. This information plays an important role since it is it that coordinates the company’s work by providing information about what is happening with the business and the market. It follows that any error can negatively affect the company’s decisions.
In this case, it is rational to use the business intelligence system.
What Are BI Systems?
A Business Intelligence system is a set of tools and programs for businesses that collect data from different sources, analyze it, and present it in a visual form. Business analytics allows companies to make decisions faster and more efficiently based on data analysis (data driven decision-making).
A BI system works according to the following algorithm — extraction, transformation, and loading:
- Data collection.
BI systems are able to collect and extract data from many different sources — CRM systems, databases, ERP systems, Excel tables, and Google search services. This can happen both automatically and at the user’s request.
- Data processing.
Then the system converts all the collected material into a format that can be worked with. Then they structure and study the data — to determine dependencies and patterns.
- Data visualization.
BI systems can build reports and visualize them; they create presentations, graphs, and dashboards.
Further, the processed data, which has already been provided in the form of ready-made reports, can be used by specialists such as analysts, CEOs, heads of marketing, and product managers. One BI system can provide reports for different purposes, such as displaying dashboards with data needed by different specialists.
BI systems can work with any data that a business needs. For example, the following tasks can be solved:
- find weak points in business processes and optimize them;
- study customer needs and develop products that will satisfy them;
- conduct sales analysis and find patterns (for example, in seasonal fluctuations in product sales);
- resource management (plan purchases and deliveries based on data from previous projects).
With the help of BI systems, it becomes possible to delegate the process of working with data, while saving money and time.
Wrapping It Up
The role of data in business is growing, becoming an integral element for making informed business decisions and increasing competitiveness. Business intelligence systems play a key role in transforming large volumes of data into insights that help companies optimize processes, predict trends, and effectively manage risks. By using analytical tools, companies can not only improve current activities but also develop long-term strategies based on real facts and figures. If you are looking for a reliable data analytics service provider, we recommend paying attention to N-iX. In general, the company specializes in providing such services as technology consulting, custom solution development, digital transformation, and team extension. N-iX has been on the market for over 20 years, the company has about 90 enterprise clients, including Fortune 500 companies.
