With the ever-increasing business in today’s world where lots of data are generated on a daily basis, the role of data analytics becomes extremely important. Not only does it help in driving exponential business growth but also in the effective formulation of data-driven decisions and policies. It helps assess the markets effectively by analysing and anticipating volatility factors. From education to health, banking to finance, and from agriculture to energy, data analytics is going to play a transformative role in changing the governance and administration landscape in the country.
Shaping the governance
Data Analytics will gain momentum for the foreseeable future and will be at the core of countless new technology solutions. Reliance on Business Intelligence (BI) and Analytics now outweigh strategy as the key requirement in business planning. But what will business analysis look like in the coming years? How will today’s version of BI and data analytics evolve over time, and how can you ensure that your business stays competitive by using new resources that emerge? These questions will get answered automatically in the ensuing time.
Data analysis has become the crux of the market. It is a detailed approach that does not let any organisation have a biased idea about the customer’s demand. It just brings out the perfect prediction and helps organisations make quick and smart decisions accordingly. The latest customer trends, the prediction of behaviour, easy interpretation, business profitability, and lots of other vital information is brought by the data analytics process.
Companies around the globe generate vast volumes of data daily, in the form of log files, web servers, transactional data, and various customer-related data. In addition to this, social media websites also generate enormous amounts of data. Companies ideally need to use all of their data to derive value out of it and make impactful decisions. Data Analytics is used to drive this purpose. To put it simply, Data Analytics is the process of exploring and analysing large datasets to find hidden patterns, unseen trends, discover correlations, and derive valuable insights to make business protections. It improves the speed and efficiency of business processes.
There’s no doubt data analytics and BI tools are evolving at a rapid pace. According to one McKinsey report focused on the healthcare industry, “data analytics and information services will have the fastest growth rate at 16 per cent to 18 per cent over the next five years, while core administrative services are unlikely to see much growth due to automation.”
Data Analytics is changing the fate of the energy sector too. Indian DISCOMs have been facing huge transmission and distribution losses but the usage of Data Analytics has helped bring down the loss from 40 per cent to the current rate of 20 per cent.
Abhinav Sood, Business Advisory Industry Consultant, SAS India said, “Digital transformation and analytics per se is going to play a huge role in transforming the power sector in India. Lots of investment, policy intervention and regulatory mechanisms done over the years have resulted in improving only the hardware side of the power sector, but its technology part was missing. So, Data Analytics can play a transformational role in checking revenue leakages and bring efficiency and transparency in the energy sector. As our honourable Prime Minister emphasises on making India a $5 trillion economy, the role of GDP- Electricity- Elasticity concept becomes very crucial, where Data analytics is going to be proved very instrumental.”
Stressing upon the importance of Artificial Intelligence and Machine Learning (AI/ML), which is employed in data mining or data optimisation, he believes, “Investing more on the billing system will not generate revenue for you, but making sense of the data which you collect, is going to drive your revenues. And this is how you can bring distribution loss down to 10 per cent.”
Knowing the potential customers or clients:
The most important virtue of Data Analytics is to help a company identify its potential customers and how they can be attracted.
Innovative approach: You can have a rough idea of future trends through data analytics. Hence you can update your approach and benefit from it. Hence, here you can have an idea of why data analytics is the future of everything.
Reduction the cost of operation: Data analysis cuts the cost of operation and brings growth in the revenue of the business. The scope of data analytics in the future is so brightly visible because of its unending list of virtues that can bring about a major change in a company’s growth. You can exactly know the right type of advertisements that are advisable for you to attract your customers and that too at a very less price.
Accuracy of information: Companies must have a clear picture of where they stand to have a quantum leap in their careers. Data analysis helps them have a vivid picture of their services and how the market is responding to them. This gives a clear idea of how to align plans and see fruitful results coming in.
Rightly anchoring Digital Marketing Strategies: When your digital marketing strategy is on point, you need not fear much about your company’s growth. Digital marketing builds up your brand image in the virtual platform. And data analysis brings value to your digital marketing moves. Hence, when your digital marketing strategy is free of flaws, you tend to successfully add value to your brand image.
The way forward
According to CBRE’s latest report, it is expected that data centre capacity will almost double by 2024, with more than 400 MW currently under construction across cities in India. Data Centre (DC) investments in India are expected to surpass $20 billion by 2025. The growing digitalisation, coupled with a strong government policy impetus, has led to a surge in demand for DCs in India. In addition, OTT, online gaming, increased smartphone usage, e-commerce, online schooling by EdTech platforms, location-agnostic work, along with advanced technologies including machine learning, 5G, blockchain, and artificial intelligence, has led to a multi-fold jump in data transmission and need for high-speed servers.
To make most of such opportunities coming way and lead a paradigm shift in its economy, India needs to optimise its data analytics adoption speed and greater thoughts should go into it so that we can reap the transformative results the data analytics have to offer.