Why do companies use business analytics?
There are several aspects of why companies are turning this way:
1. Effectiveness. It is very expensive to pay a skilled worker for the semi-mechanical work he does in collecting data, processing it and providing it to someone. The system can independently collect, process and present data through various channels.
2. Progress. In these times of artificial intelligence, there are many intelligent algorithms that can perform calculations, make insights, or process amounts of data that are impossible when preparing reports manually. The dynamics of inventory aging (stocking), customer habits of late payments, managers’ habits of selling cheaper than other managers, workload peaks and similar indicators are what elevate management to a higher level.
3. Transparency/Visibility. How long does it take for a manager to come to work after a holiday to understand exactly what the current situation in the company is and has no one deviated from the norm? Need to print and view at least 20 reports? Analytics allows you to see the whole situation in an instant and monitor the company's activities or individual processes at all times. There is a very big difference between "we can calculate such indicators manually" and "we see such indicators every day".
4. Analytics initiates change. With the introduction of smart metrics and the ability to monitor performance effectively, change naturally begins. Noticeable trends, inefficient processes or steps are discovered, new ideas arise as how to organize activities more efficiently or to earn more profit.