The term data analytics describes the way in which businesses capture and review data to understand patterns and trends, identify and resolve outliers, and inform strategic decision making, but is it a good thing? Let’s take a look.
Benefits of data analytics.
Used properly and in line with GDPR legislation, data analytics can help businesses make more effective decisions to satisfy their customers and become more successful.
Data-driven decision making means making decisions based on facts rather than subjectivity, which can lead to improved efficiency, productivity, and profitability. It can also enhance reputational standing and strengthen consumer loyalty.
Data analytics help businesses identify opportunities and resolve problems, allowing them to adapt their operations to achieve better outcomes. Most businesses that hire a data analysis company, such as //shepper.com/, to support them in using their data more effectively report impressive gains as a result.
Disadvantages of data analytics.
To deliver the desired results, the data analysed must be of a sufficiently high standard, which requires time, effort, and money to achieve. Analysing poor quality, biased, or incomplete data will never yield the benefits businesses are seeking.
The process of data analytics requires locating, identifying, and categorising complex datasets comprising a mix of qualitative and quantitative data. This may raise ethical concerns regarding privacy and consent, and businesses must ensure the work they are undertaking does not breach GDPR legislation.
In conclusion
The biggest challenge to data analytics is performing it in such a manner as to protect individuals’ private information while achieving real-time, beneficial data insights.