As businesses navigate challenging economic times, data analytics have become increasingly important. Analytics help to create a distinct competitive advantage, by supporting strategic planning initiatives designed to deliver organizational value.
However, the ability to derive enhanced knowledge and insight from analytics presents a challenge, in managing the exponential amount of data organizations create on a daily basis. Companies need to find efficient ways to decipher what can quickly become a mountain of data. The ultimate goal of any business analytics program is to collect and transform data into meaningful information that drives intelligent business decisions; to do so, data must be manageable.
Proactively capturing, transforming, and delivering data analytics in real-time is easier said than done. In the past, transactional databases for applications were housed on multiple systems, making it difficult to implement data warehousing and perform analytics. The IBM PureData System for Analytics (formerly known as Netezza)is a data warehousing appliance designed specifically to crunch voluminous amounts of data efficiently, putting an end to the siloed data problem.
How can the IBM PureData System for Analytics create organizational value from the business analytics it provides to leaders?
The business analytics extracted from the IBM PureData System for Analytics allow leaders to streamline the strategic decision-making processes within business functions such as:
- supply chain
- customer relationship, loyalty, and service
- human capital
- product service and quality
- financial performance
- research and development, and more
Imagine providing leadership with information that helps optimize how supply chains flow, resulting in the reduction of inventory costs and stock-outs, or being able to identify customers that offer the greatest potential for profit. To successfully achieve these initiatives, organizations do not need a crystal ball, nor should they make decisions based on gut feelings. Information is the driving force behind successful strategic planning. A strategic plan based on quality insights (extracted and analyzed from a quality data warehousing solution) ensures leaders target opportunities that provide organizational growth and increase profit margins.
Examine Multiple Scenarios for a Competitive Edge
Another extremely important use of business analytics is the competitive advantage they create. As an organization evolves, it is essential to implement innovative strategies in response to external changes within the market. Data analytics provides key information on potential scenarios organizations need to examine prior to making strategic decisions. For example, data analytics can help marketers determine to which demographics a new product should be marketed, based on historical data for a similar product.
Organizations executing strategies based on information gathered from business analytics have a clear advantage over those relying on trends or intuition. The IBM PureData System for Analytics allows organizations to quickly realize business value by identifying which initiatives an organization should pursue.
Does your organization have an effective data warehousing plan in place? Do you use business analytics? Are you familiar with Netezza (now, IBM PureData System for Analytics)? If so, let us know if it has helped your organization make better business decisions.