Typically, an employee gets to where he or she is by excelling in his or her previous role. Those who are proficient in a particular skill set valuable to the organization get promoted to higher levels where they start to manage others who do the same kind of work. Unfortunately, we don’t always provide training on how to go from an excellent worker to an excellent manager. Using available data is the easiest way to go.
An average organization only uses 50% of their available data for their decision-making process. This is significant when you consider 70% of late adopters base their decisions on gut feeling or experience, while 60% of best-in-class companies use data analytics when making decisions. Data is powerful tool when used to its full capability; by using all available data, an employee can establish a clear competitive advantage. Storing and regularly accessing relevant information will allow you to save organisation’s time and money by better decisions in lesser time.
Below are some of the key benefits mentioned that data analytics can have on your organization and gives you valid reasons why all employees should use Data Analytics to make the business more profitable.
1. Improved reporting and monitor performance
Consistent and regular reporting is a very important activity on which successful businesses are built. Especially, today when startups are able to quickly scale up with huge capital flowing in, inculcating this culture can be very fruitful. Analytics help diagnose the issues in your organization and how to fix them. Regular analytics will allow you to regularly understand how your organization is doing every step of the day. Early detection of problems can do wonders to problem solving. Equipped with regular actionable data, managers are in a better position to hold units or departments accountable for exceeding or failing to meet goals, recognize red flags that may indicate something needs to be changed, or discover why a business plan isn’t working out as planned.
With this in-depth understanding, you’ll enable growth by meeting goals and avoiding risky scenarios. An individual department will be more likely to work on issues if they are shown to be under performing.
2. Prevent repetitive losses
Incidents are the number one predictor of claims.
For example, a logistics company regularly gets complaints of minor accidents across different regions. The reasons can be many like bad recruitment practices, ineffective training, lack of equipment etc. But because these happen across different regions nobody in company could recognise the problem much less solve. With analytics in focus such problems can be easily flagged. Someday a big accident may happen leading to claims and legal action against your organisation. If you had taken action after first few minor occurrences, the claim could have been mitigated.
Moreover, modern organisation spend a lot of money on insurance premiums to manage various types of risks. Insurance providers are a business like any other — the end goal is to be profitable. To do this, they want to insure organizations that have “good” risk: those that are likely to pay higher premiums than they require for loss coverage.
If you can show an insurance company the data analysis and resulting mitigation strategies your organization uses, they will want to insure you and may offer a more competitive rate bringing premium burden down.
Analytics allow you to figure out trends and red flags that could become issues and implement strategies to stop them before they cost you money or someone becomes injured. You can also recognize if a certain area, department, or time of year has a particularly high claim occurrence and run a root-cause analysis to understand what’s going wrong and how you can fix it in the future.
3. Better forecasting
Comprehension of what went wrong historically lets you prepare for potential incidents. Of course, there’s always the chance of unexpected events, but a thorough plan based on consistent strategy designed over actionable insights will aid organisation for almost anything. Analytics also allow you to get an understanding of your growth and performance, which is key for setting strategy, plans, goals and budgets.
These are three more reasons for any employee to get noticed and let the management know that you care about the organisation. These actions may lead to reciprocity during year end appraisal.
Many software packages are available in the market for carrying out analytics. Popular packages are R, SAS and Tableau.
If you’re struggling with data analytics, White Knight Ventures EDU has customised modules which can help both corporates and professionals with analytics and reporting.
Want more information? Visit www.wkvedu.com