One word can be used to sum up every successful business today – data. Data is the foundation for every efficient marketing campaign, and brands are using it to reach more people than ever! Technology has disrupted entire industries over the past decade, and business analytics is no exception. Even as far back as 2015, we saw that 53% of businesses were using big data in one form or another. That number has skyrocketed today. In short, data has become the single most important factor in business.
Companies that emphasize creating value from this digital information are going to be more innovative and will over-perform any business that does not. The major uses generally fall to marketing and customer services, but in reality, all of a business’s processes can be improved through business analytics. We’re seeing companies that properly utilize data becoming more profitable than ever! These are disruptive companies, and they can be found in every industry. We can look at companies like Netflix and Amazon to see two amazing examples of businesses using data to disrupt their respective industries.
Every business is on the lookout for business analysts, so it has created a high demand for these professionals.
Top Business Analytics Trends Expected for 2020
- We are going to see a lot of trends in the coming year, so you need to make sure your business is on the right path. Businesses that are prepared for these trends are going to experience more success.
- Data will be discovered at a much faster rate as tools become streamlined into business processes.
- Artificial intelligence is going to become a high priority in business. It is a disruptive technology.
- Cognitive computing is a buzzword that has started being spread around the business world. These systems can gather huge amounts of data and structure it in a way that executives can better manage it. For instance, these systems can go through millions of social media posts and pull raw data from those posts about specific metrics. Then it organizes that data into a format that makes sense.
- Predictive analytics is another process that we’re going to see greatly evolve. It’s a tool used by businesses to reduce overheads, risks, and ensure that all areas of a business are compliant. We’ll discuss this in more detail later.
- Natural language processing will become much more streamlined, allowing businesses to communicate with their data. That will make BI systems much more impactful.
- Construction, Retail, Medical, Banking, and Transportation industries have all been disrupted by business analytics. They are also going to be the most innovative data-driven industries in 2020. But I’m sure other industries are going to shock us by the end of the year!
The Future of Predictive Analytics
Predictive analytics gathers data on historical events and then organizes it in a way that can be used to predict future events. In most cases, algorithms are created that automatically do this, combining business intelligence with standard analytical processes.
We are going to see artificial intelligence take a primary role in predictive analytics in 2020. There is just so much data to go through that businesses will either invest in systems that are capable of automatically learning from it, or they are going to fall behind.
- Predictive analytics is used to detect fraud due to its ability to find certain patterns in data. Cybersecurity has become such a major concern that businesses will need detailed fraud prevention techniques to spot vulnerabilities as quickly as possible.
- Optimized marketing is done by using past performance to predict future outcomes. This helps marketing leaders create models that can be used to enhance their marketing campaigns, thus funnelling in new leads.
- Predictive analytics help businesses improve their internal operations and make them more efficient. For instance, supermarkets use past sales to determine how to restock their inventory.
Upcoming Challenges with Data
One of the biggest challenges with data is that it takes a lot of planning to successfully discover and manage it. This is mostly due to the sheer volume of data that is shared around the world. There is just so much data being shared that businesses are forced to develop new, innovative ways of processing it. It’s not just the volume either, but the variety of places where people tend to share information. We have social media, forums, blogs, videos, surveys, and many more places where data must be harvested. In 2020, all businesses will be forced to use business intelligence to improve their current BA strategies.
Finally, data consistency also presents a challenge. Everyone in a company needs to be on the same page. This means updating company policies and retraining certain team members in the proper use of data.
Artificial Intelligence Will Become a Requirement
Artificial intelligence is going to become even more streamlined in 2020 as businesses start to pick up on it. These systems can automatically gather, organize, and transform raw data into useful information. Right now, we’re already seeing AI being used in several applications, and that list is going to grow.
- Gaming was the first area where AI was used, and it continues to help develop the programming of these systems.
- Natural language processing systems can interact with videos and audio recordings, pulling out essential information in a digestible format.
- Handwriting recognition software is capable of automatically translating the handwritten text into digital format.
The Future of Business Analytics Starts Today
As cloud technology continues to grow, we’ll see more developments in the realm of business analytics. Make no mistake, though. The future starts today! Right now, there are six elements which are the building blocks of business analytics. They are the source, models, processing, storage, computing, and analytical models. Cloud technology is capable of handling all of those elements.
Most businesses are going to find themselves in need of expert services like those found at the Research Optimus Company to help streamline their systems to meet this new demand. Don’t fall behind your competition. Business analytics is going to shape the digital future so you must be prepared for it.
Gracie Myers is a content writer at Research Optimus . She enjoys writing on various topics mainly associated with Research. Her famous articles are on the topic of Business Research, Market Research, Business Analytics and many more.