We’ve heard a lot lately about digital transformation, the idea that businesses are evolving how they operate – moving from traditional channels towards all things digital through the use of mobile apps, in-store digital offers, and more digital communication in general. My own experience confirms this. I love mobile banking, I’ve been spotted “showrooming” at brick-and-mortar stores, and my apps manage everything from my remote control to my alarm system.
However, as we think about businesses of the future we must consider speed to decision. The faster a business reacts to a consumer, the more likely it will secure that consumer’s business.
But do you really need powerful data management and analytics to operate an efficient digital business? I say yes, in fact - that the better your data management and analytical processes, the better the results. So ask yourself this question: Does your organization have powerful enough analytics to fuel a digital business?
Let’s talk about the role analytics plays each step along the way.
- Finding the secrets the data hold. It’s no simple task. Just gathering the data from all parts of an organization is daunting; few firms have the infrastructure even for simple data sourcing. And then, once you’ve collected data across channels (web, email, call center, social) and departments (sales, service, support), you have to apply management and analytical techniques. Data management includes performing data quality, data integration, and data structuring exercises – an arduous but essential undertaking because in order to have good analytics, you need good data. But now comes analytics – the fun part – uncovering unexpected insights unique customer behaviors based on data. It's best to think of analytics in terms of four basic forms:
- Descriptive analytics answers the question of what happened in the past.
- Diagnostic analytics helps determine why something may have occurred.
- Predictive analytics delves into what might happen in the future.
- Prescriptive analytics – the realm of the most mature organizations – posits how to replicate an event to make it occur again.
A true digital business needs to have at least descriptive and diagnostics analytics covered. And you must articulate a vision for performing predictive and prescriptive analytics if not already employing them. Read More