According to a 2012 study, industry leaders experienced 5% higher productivity and 6% higher profitability than their competitors by leveraging data-driven decision making.
Truly data-driven organizations create, capture, and store data effectively to gain a competitive edge. To obtain this advantage, data analysis needs to be incorporated into strategic and tactical decisions on a daily basis. Promoting a culture of analytics and deploying advanced analytics tools can bring numerous benefits. By harnessing predictive and prescriptive analytics to provide better insights, businesses can achieve higher levels of productivity and profitability in three key areas:
1. Revenue Generation
- Provide more detailed and timely information on customers, what they buy, and why
- Allow managers to accelerate sales cycles and identify new opportunities for cross-selling
- Realize a return of more than $10 for every $1 invested in advanced analytics capabilities
2. Gross Margin Management
- Provide insights into optimal product mix, given current and anticipated market conditions
- Experience higher productivity and profitability
3. Expense Reduction
- Allow for better inventory management, reducing the cost of storing inventory for long periods of time
- Reduce manual processes and costs
- Provide for better control and visibility of expenses
Learn more about maximizing the value of data analytics. Click here to view the full presentation Getting the Most Out of Your Company in the Age of Analytics on SlideShare.