Over the last few months, we’ve explored some of the ways by which data can help organisations to improve. From identifying new opportunities and improving customer experience to reducing inefficiencies and improving performance, effectively using data can have a measurable impact on how a business performs.
In this blog, we conclude our “improving your business through data” blog series and consider some of the ways by which businesses can use data to empower meaningful change.
When it was introduced in May 2018, GDPR placed data firmly in the limelight. The legislation focused a great deal on the personal data of individuals, but it is important to remember that what constitutes actionable data, capable of driving change within an organisation is so much more than names, email addresses and phone numbers. For example, customer analytics data, open data sets, logistics data and financial records can each be analysed to provide organisations with insight capable of delivering change, identifying opportunities and improving efficiency.
Take a step back and consider what data your organisation has access to and how that data might enable change within your organisation.
Over the last 20 years, countless industries have found themselves changed beyond recognition. It seems difficult to imagine a world without Netflix, Spotify and UBER and yet as recently as 10 years ago many of those industries were completely different.
Despite how these industries have changed however, their function has remained relatively the same. For the most part, the products and services offered do not vary a great deal from the products and services offered by their predecessors. At their core, Netflix only offers movies and TV shows, Spotify only offers music and UBER only offers transportation. Instead, where these companies differ is customer experience.
Customer experience is central to differentiating your business from competitors. Utilising data within your organisations provides the means to improve upon customer experience by helping to create a more comprehensive picture of your business, your customer and the environment around you.
A recent study conducted by The Workforce Institute at Kronos found that unnecessary administration tasks could potentially cost the UK economy up to £60 billion per year, a figure that equates to £1,932 a year per employee, per organisation.
Using data enables organisations to identify where waste and inefficiency occurs and as such, provides them with the means to address it.
An article from McKinsey outlines that as much as 35% of what consumers purchase on Amazon, and as much as 75% of what consumers choose to watch on Netflix come from product recommendations based on their recommendation engines.
At their core, recommendation engines are the application of data to help identify additional opportunities. Organisations are not limited to recommendation engines either. Data has the potential to identify opportunities in a variety of ways, not least of all by providing insight into unknown and unfamiliar markets.
Data can also be used in the optimisation of existing markets. Data can help organisations to identify and address missed opportunities in the delivery of a product or service.
In the 1990s, Proctor & Gamble (P&G) encountered a problem in the supply chain of Pampers. Despite a relatively consistent demand from consumers, orders from suppliers, distributors, and wholesalers fluctuated widely. This phenomenon became known as the “Bullwhip effect” and frequently occurs when suppliers, distributors, and wholesalers overcompensate for relatively minor shifts in customer buying behaviour.
The “Bullwhip effect” perfectly illustrates the way by which minor issues, such as poor communication, can often amplify over time and lead to a variety of much larger issues.
In P&G’s case, data and technology helped identify and address these issues, by providing insight into the complex trade relationships that exist between stakeholders and by helping to establish more effective lines of communications between them.
Data and technology have the ability to provide organisations with a holistic view of their organisation and the environment around them. At Analytics Engines, we see data differently. Our expert team delivers creative, agile data analytics solutions which are as unique as the problems they solve. We work closely with our partners and clients to create tailored data analytics solutions that meet their specific needs. To find out more, contact us using the form below.