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How Critical are Analytics and Big Data for Strategic Growth?

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Click to learn more about author Amit Dua.

Bringing stronger ground to strategy and management, analytics is one of the leading technology solutions in the marketplace. The $50 Billion global industry is set to grow at 10% CAGR across various domains worldwide. Everything from media to real estate is driven by Big Data these days, with greater emphasis on strategic insight.

With the power of Big Data consulting services, brands are able to review strategic growth objectively. Data empowers companies to make the right decision and allows them to become leaner in competitive industries.

Data influences major aspects of decision making owning to its size and scale worldwide. Research from Cisco estimates that by 2020, there will more than 50 Billion connected devices in the global network. Additionally, the last two years saw more than 90% of the world’s data being created. This is a sign of rapid development in industries across the world.

All of this blend into the strategy space, with more business heads focusing on big data and analytics services. These service providers offer the right approach when it comes to strategic growth and provide market-driven insights. Big Data Analytics are considered critical according to research done by PwC consulting. 61% of C-Suite managers believe that Big Data will help strengthen their intuition in their field.

Providing Increased Clarity During Strategy Formation

The strategy is critical to having the business develop over time and flourish through challenges. When businesses have an effective strategy in place, they can uncover new opportunities within the industry. Big Data Analytics companies allow for greater insights into the marketplace that you’re operating in. They can be deployed across a variety of applications including healthcare, marketing and, retail.

“At a high level, organizations are turning to Big Data and analytics solutions to navigate the convergence of their physical and digital worlds. This transformation takes a different shape depending on the industry. For instance, within banking and retail investments are all about managing and reinvigorating the customer experience.” – Jessica Goepfert, Vice President, IDC (International Data Corp.)

Companies might make impulsive decisions to enter certain spaces, but Big Data can give us light into the matter. While trending areas may be relevant to key industries, your unique business may need for information before making the final call. Big Data Analytics help us refine our gut feeling and make us better decision-makers in the long run.

Companies that function on Big Data have greater strength in the marketplace owing to their data-backed decisions. Execution also occurs at a much faster rate, as there is increased clarity into the strategy. The overall strategy is also refined to more specific details, as there is more data involved in the decision-making matrix.

Even when considering, acquiring key companies for expansion, Big Data Analytics models can help CEOs determine the right approach. Looking at key metrics like CAC, retention and regression factors, CEOs can get a better idea about the health of the company. There are many tools available to the corporate strategist who can refine their approach using Big Data Analytics solutions.

Uncovering New Trends in the Industry (First-mover Advantage)

The 7-year study by NewVantage Partners reveals that over 90% of managers and C-suite executives are ramping up Big Data within their companies. The data, compromised of Fortune 1000 and leaders in the industry, also suggested that 87% of participants have a sense of urgency in increasing investments. While healthcare has seen a massive jump in investment, almost every industry measured has widened its approach.

One of the critical factors behind the growth of Big Data has been because of the value derived from uncovered insights. Insights can help a company enhance its overall offering and create more market-friendly solutions. The social media platform WeChat measured the average sleeping time for its customers across the last 3-4 years. They uncovered that they could advertise to active customers as late as 11:30 PM, shifted almost 1.5 hours later than when measured in 2015. This increases revenue overall and adds value to the future strategic initiatives.

When it comes to predictive modeling and entering new geographies, it helps to have a treasure-trove of data available. That’s why Big Data Analytics help companies across the board. They’re also great for understanding deeper insights that can help in bringing first-mover advantage. Companies that leverage the power of Big Data Analytics can find new niches in which they can enter.

Big Data brings with it greater ROI which can be witnessed across all critical business areas. Upwards of 20% of lost ROI can be regained with greater data and analytics integration, according to research from McKinsey Group.

First-mover advantage can also help companies enter unknown zones with greater insight. They can rely on quality data and analytics to seek profits and opportunities across a depth of marketplace initiatives. All areas, including customer insights and competition landscape, can be enhanced by using Big Data. When companies can see new trends with clarity, they can make the right decision from a strategic point of view.

Enhancing Existing Offerings and Solutions Models

When companies have greater access to data, they can refine their existing offerings. This can be done by taking into consideration customer data, new industry insights and research. The cost of innovation is rising steadily, with the majority of new initiatives failing to recover original capital.

According to GE’s Innovation Barometer report, that model is changing with increased access to technology and Big Data solutions. The analytics model of business is increasing innovation confidence in businesses around the world.  

Big Data solutions are required to provide a safety net to new innovations. The entire model of new product development can be made that much leaner when there is Big Data involved. Companies can foundationally change the way that they interact with the marketplace, by introducing new products based on real market demand.

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