Understanding data: What is it and how can Aussie business owners use it? | Camden Haven Courier
There’s no denying that data analytics has become a buzzword across countless Australian industries in recent years. But it was a buzzword that brought some really excellent benefits.
From providing valuable market insights to help business owners plan their next moves to outlining the drivers of consumer behavior, data analysis as a technological discipline is one that is guiding the process of digital transformation both in Australia and abroad Has.
But how can entrepreneurs make the best use of the data at their disposal? In fact, there are a number of methods for analyzing and presenting business data, some of which may be better suited than others to specific industries or companies of a specific size.
In this regard, finding the best data solution for your business not only requires a little trial and error, but ideally also the guidance of a professional data analyst or data scientist.
We will outline some of the key processes and benefits of data analysis to shed light on this discipline and its position as an increasingly important part of modern business development strategies.
The difference between business data and “big data”
For Australian business owners who are new to the power of data, it’s safe to assume that you’ve had some exposure to the concept of ‘big data’.
Understanding big data is a relatively good place to start, so we’ll outline some of the key ideas you should keep in mind about the difference between “normal” business data and the concept of big data.
Big data is the term used to describe the combination of naturally structured, unstructured, and semi-structured data that is collected when undertaking a large-scale data collection project within a specific market or industry.
Because of its broad and expansive nature, Big Data can be collected from virtually any source, from formal surveys and questionnaires, to engagement on a social media platform, to purchases made through a retail store or e-commerce website.
Big data is generally characterized by its “three Vs”, namely:
- a large amount of information,
- the rate at which that information is collected, and
- the variety (or breadth) of metrics or data points that are provided.
Because big data typically represents an extensive set of data points, data analysts need to sort through these larger, more complex datasets to uncover insights. The complexity of large data sets is in some ways both a benefit and a liability.
The reason for this is that big data must always be processed by analytics experts in order for the data sets to provide valuable insights. However, the advantage of these extensive data sets is that the more interrelated metrics available in a data set, the greater the likelihood that the insights gained from this data will be highly accurate and applicable to all companies operating in an industry or niche .
In short, this is why market research agencies exist. These agencies have the resources to collect, compile, and analyze big data as thoroughly as possible. Companies that only have the resources to analyze their own business data can then pay for market insights provided by research agencies that handle big data.
Direction for the strategy development of corporate growth
Now let’s look at some of the ways data analytics can add value to Australian businesses. Investing in data analytics has two main benefits, whether it’s through purchasing annual market reports or hiring your own dedicated analytics experts.
The first benefit we will examine is to provide companies with the building blocks to help them formulate their business growth strategies.
Let’s start with the example of strategizing for digital transformation, an issue that virtually every Australian business owner has struggled with in recent years. When it comes to strategic planning for digital transformation, business owners have an opportunity to make a variety of investments, ranging from investing in digital technology or resources to onboarding new employees.
Knowing exactly which step to take first can mean the difference between becoming a leader in your industry or wasting your growth budget.
Fortunately, analyzing business data and market trends can provide Australian business owners with a proven template for their own growth strategy. Looking at competitors in overseas markets and the steps they’ve taken in similar economic contexts can help local business owners figure out which investments to make first.
In other words, understanding business data can help your organization make informed growth decisions that are more likely to deliver a higher return on your growth investments than if you went “blind,” so to speak.
Improvement of products and services
Of course, the growth strategy in terms of improving your business processes or expanding your team is only one half of the equation when it comes to business development. Another important part of developing your business is to naturally improve its products and services to ensure your business’s consumer offerings never feel outdated and keep up with those of your competitors.
Luckily, data analytics allows business owners to engage with consumer trends and behaviors. This allows them to actively map out which changes or product developments their consumers are most likely to use and appreciate.
The ability to access and act on these insights into consumer needs can undoubtedly help companies improve their customer offerings to enable increasingly more intuitive customer experiences.
And if we’ve learned anything from observing modern industries, it’s that providing an intuitive customer experience has become almost tantamount to developing your very own monopoly.
As you can see, data analysis as a discipline offers some great benefits for business owners looking to make informed growth decisions, whether looking to expand their workforce or diversify their product line.
Australian business owners who want to harness the power of data are encouraged to make their own investments while conducting independent research on their industry and key competitors.
You’ll find that by engaging with data yourself, you can develop your own innate ability to analyze the numbers in front of you.