In almost every industry, data companies are dominating.
What is a data company?
A data company is any business that has made the collection and application of data one of its core competencies. All data companies have mastered the art of advanced data analytics.
Data companies can be tech behemoths like Facebook, Google, or Amazon. Non-tech companies like Walmart or Target are also getting in on the action.
With the rise of increasingly affordable business intelligence (BI) tools and advanced analytics tools, even small or medium local businesses are becoming disruptive data companies.
Size and industry doesn’t matter. All that counts is how you use your data.
Using Advanced Data Analytics
Visualizing your data in reports and dashboards is great, but it’s just the tip of the iceberg in terms of what you can accomplish. To really take advantage of your BI setup, you need to start conducting advanced analytics.
Basic analytics are about reporting where you’re at or where you’ve been (how much inventory do we have, what were our total sales last month, etc.). Advanced analytics help you see where you’re going (how much will sales increase if we open a new location, what are our projected earnings based on past performance, what is the average lifetime value of our customers…)
Applications of advanced analytics include what-if analysis for exploring different strategic paths, and even more sophisticated capabilities, like machine learning.
The advanced analytics process uses powerful mathematical techniques to interpret data. Patterns, groupings, and correlations in data sets are identified using statistical methods and machine-based techniques, such as deep learning. This allows you to make predictions about future behavior.
These complex predictive and prescriptive analyses often require a highly skilled data scientist who knows computer coding languages, like Python and the R language.
Again, you can hire your own, or, just use a Done-For-You Data Warehouse services and have your data science work taken care of for you by seasoned data experts.
With the advent of big data, advanced analytics is becoming more and more common. Either you get with the times and start taking advantage of your data’s potential, or you get left behind.
Becoming A Data Company
With you data strategy, data warehouse, viz tool, and advanced analytics, you can use your data to quickly and efficiently launch new BI initiatives and grow your business.
Test new products and services, measure and optimize your marketing efforts, or help your employees be more productive with KPIs. The sky is the limit!
Visit our knowledge center for more ideas on what to do with your data and how you can keep growing as a data company.
Nate McMurtrey loves using data to solve business problems. He is a Business Intelligence expert, data warehouse wizard, and pioneer in Done-For-You data warehouse solutions. He has worked as a BI manager and freelance BI consultant. In 2014, he co-founded Xerva with Nate Allphin.