Multi-faceted data analytics can be defined as the process of interpreting, cleansing, transforming, and sharing data. The sole motive is to derive information, used for drawing insightful conclusions and smart decision making. On the other hand, machine learning (ML) is the application of computer systems that use algorithms and automatically improve via experience.
These do not need pointed instructions to do the same. In simpler words, the former strategically analyses and interprets past data generated by the systems; whereas the latter is the automatic application of the obtained results for decision-making without any human intervention. Both these elements are crucial as one helps in understanding the past, and the other uses this information to design the path for future actions.
The year 2020 saw the virus outbreak, which played a major role in changing user behavior, preferences, and patterns across the globe. In light of these rapid transitions, it became imperative for businesses to incorporate data analytics and ML in their operations, to accelerate growth and avoid stagnation. For instance, consumers became increasingly conscious about their health, consequently urging companies to offer products that befit the fitness orientation of buyers.
Here are some ways through which these disruptive technological advancements boosted business momentum in 2020 –
Customer base expansion and retention:
A market is identified by its dynamic nature, and cut-throat competition is a common characteristic. In such a situation, if an organization fails to understand the preferences of its target audience, then it will end up losing its clientele, and the products will be unable to meet buyer expectations.
A combination of ML and data analytics enables businesses to understand consumer trends and behaviors. Data about customer’s shopping habits, demographics, income, purchase frequency amongst others allows organizations to seamlessly carry out numerous functions such as product development, pricing, and placement. By successful usage of available data, brands can not only meet but also exceed consumer expectations, simultaneously generating loyalty and acquiring new customers.
Improved supply chain management:
Clarity, insight, and accuracy are the three cardinal pre-requisites for the smooth functioning of supplier networks. Conventional systems failed to leverage Big Data and made the supply chain prone to errors, delays, and losses.
However, modern management channels are backed by machine learning and data analytics, making it glitch-free. Now goods can freely move through long and complicated chains, as these systems are based on knowledge sharing, collaborative exchange, and contextual intelligence.
Further, they promote inventory management by keeping a check on both the shortage and excess of commodities. For instance, if a particular product is in demand seasonally, these systems will notify the need for increased stock, along with the required quantity to meet the projected demand to reduce wastage.
Supports risk management:
All businesses are risk-taking endeavors, especially now more than ever. These unprecedented times made it very important for businesses to identify the risk indicators, as well as successfully manage them by creating reserves, plans, and strategies to minimize losses.
Data analytics and ML allow companies to quantify their risks and establish models that will help in mitigating them. For instance, by performance tracking, data analysis can point out the factors involved and the extent to which they disrupt the operations of a company. ML can be employed to find solutions to eradicate such mishaps.
Drives product development and innovation:
The consumer is that king whose wants and preferences can change within seconds. To attract more consumers, healthcare organizations and businesses need products and services that are innovative, modern, and meet buyers’ needs. By applying Big Data analytics, brands can gain in-depth knowledge about their purchase patterns and buying behavior.
Further, ML can help in predicting future trends based on past data, this will equip companies to plan and be ready to offer something new as and when the need arises. Additionally, data analytics also provides information about the success and failure of varying products/services, whereas ML paves the way for improvement and betterment.
In the era of rapid changes, companies should leverage the benefits of such disruptive technologies to attain their goals of growth, profitability, and consumer satisfaction.