Analytics today can be very much
associated with Karma – wonder why? Well it help us to
evaluate past actions and to estimate the potential of future actions, so to
make better decisions and adopt more effective strategies as organizations or
individuals. Analytics allows us to take our decisions based on evidence and
facts rather than myth, prejudice or anecdote.
The World Wide Web is celebrating its 24th anniversary this year and not one can deny the revolution
it has brought in our present day web analytics solutions. A number of key
events in the web analytics industry and developmental milestones are part of
an ongoing collective effort to make the internet a better place for a global
community of users. Initially the use of analytics was very much limited as not
all had the data and system in
places. However with every passing day, analytics has become an important part
of a number of organizations owing to the increased availability, detail,
volume and variety of data from the extensive use of ICT (Information and Communication
Technology) throughout all facets of our lives. This aspect has definitely
caught the media attention but can data alone reap a lot of benefits from
analytics? Not particularly.
Another important yet less known
factor that contributed to the growth of analytics is the broad list and
effectiveness of techniques for data analysis. Also, the increased pressure on
business and educational organizations to keep up with the growing world of
data adds the third leg to the stool: data, techniques, need.
“In one of his articles, Adam Cooper quoted -“The diversity and flexibility of some of the
techniques lined up under the analytics flag is evidenced by the numerous
different applications of analytics: financial markets, sports analytics,
econometrics, product pricing and yield maximization, fraud, crime detection,
spam email filters, marketing, customer segmentation, organizational efficiency
and even tracking the spread of infectious disease from web searches.”
Generating Financial Services Impact: Analytics
The financial industry today is
facing a tough challenge dealing with maintaining profitability and addressing
a host of new regulatory requirements and market changes. Banks and financial
services firms are moving towards big
data, using insights from daily transactions, market feeds and customer records
to transform their operations and build new business models. “A whopping 71%of banking and financial markets firms are now using big
data and analytics in order to gain competitive advantage.” Analytics today has
spread its wings across a wide range of banking and finance services, including
retail, corporate and investment banking and even securities and commercial
leasing and lending. The primary reasons are
- Risk reduction
- Customer growth is enhanced through cross-selling and up-selling
- Not only are the collection efforts optimized but also the legal regulations are met
Data Analytics: Fraud Prevention.
We all know that IT runs at the heart
of every business in today’s world. With more and more business data piling up
from internal and external sources, organizations tend to believe more on
automated controls to both prevent and detect fraud. While analytics has
enabled companies to organize data
in a more structured form for further
analysis, it has been found that many organizations are not utilizing this to
the best for preventing their business data from potential fraud. You must have
heard of the famous proverb
– “Prevention is better than cure” – well analytics plays that role too and bars the
occurrence of fraud.
Why Data Analytics?
Analytics, being an automated method,
increases efficiency
- Multiple number of fraud tests can be repeated on the data for a detailed analysis
- Covers a wide range of data analysis across different departments and not only the conventional ones more chance of finding the irregularity
- Acts as a warning tool to prevent the fraud from actually occurring.
Marketing Analytics – Success through Analysis
The Internet has connected the
businesses to the common mass at much faster speeds and lower costs than major
traditional advertising methods. Simply
having a Web presence and using the right keywords will drive search engine
users to a website.
Unfortunately, not everything has a positive effect.
With more and more brands joining the
competition, the businesses start finding it difficult to cope. Marketing analytics used along with big data
will help many organizations gain insight into their clients' purchasing
habits, properly evaluate their marketing performance and make more concrete
marketing decisions. The evolution of Big Data has completely revolutionized
the industry and enabled marketing executives have a better accessibility to
internal as well as external information thereby making more informed
decisions. These big data strategies include the following:
- Customer sentiment and its analysis
- Consumer behavior in retail stores is monitored
- Open communication channels with clients
- Predictive analytics (to ensure on time product availability)
- Purchasing habits of the customers are tracked
The Future of Analytics – The Road Ahead
The heart of business analytics beats
primarily with data.
It is what companies rely upon for their
competitive advantage and it is becoming more and more important with each
passing day with multiple enhancements in technology and increasing
availability of analytical tools from hardware to software to data collection.
We are already in the third phase of
data analytics –we’ve been through Analytics 1.0 and 2.0 and now we stand on
the edge of Analytics 3.0. This new shift towards Analytics 3.0 is a
resolve that applies data to a company’s offerings instead of just its
operations and processes. What’s new? – Focus is on creating new products
with tangible benefits rather than just helping the company building its
strategies. The amount of data that is generated in the business world is
doubling every year and the key today is to make one ready to this vast
eruption of the volcano of data.
~Ankit Periwal Information Management PGDM 2014
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