Traditional business intelligence tools are excellent for getting a snapshot of where you’re at, but today’s advanced analytics can do even more. Using innovative data science tools and analytics techniques, you can gain new insights into customer preferences and market trends, analyze and reduce risks, and increase your company’s efficiency and revenue. Here are four data analytics tools that will change the way you do business.
Advanced Analytics and New Capabilities
With the explosion of the Internet of Things, and with half of the world’s population connected to the internet, we’re in the middle of an information boom. Data science has to evolve quickly to keep up with things, including developing advanced analytics to organize and analyze all of this information. Advanced analytics capabilities go beyond traditional business intelligence by fully utilizing all data to bring you greater insights and predictions. Some of these new analytics techniques, tools, and strategies include:
1. Predictive Analytics
One of the most impressive new tools is predictive analytics which uses historical and real-time data to create predictive models and forecasts future business outcomes. This is a fantastic way to assess risks, predict customer behavior, and get a competitive advantage. Financial institutions can use predictive analytics to fine-tune their fraud protection programs and detect transaction anomalies. These analytics can also help up-sell or cross-sell to customers based on their past purchases. Predictive analytics largely uses machine learning and advanced statistical algorithms to generate these predictive models.
2. Machine Learning
The most significant machine learning function is big data analytics. Big data is a term used to describe enormous datasets that are so vast and complex, they can’t be broken down and analyzed using basic data-processing software. Machine learning uses algorithms and artificial intelligence to teach computers how to sort through big data to identify key insights and then automate tasks based on those insights. By analyzing all of this information that data scientists normally can’t as well as automating analytics strategies, companies can learn more about their customers and identify key engagement opportunities. A perfect example of machine learning is Netflix’s recommended section algorithm.
3. Advanced Data Visualization
Visualization has always been an integral part of data analytics, and today’s solutions offer advanced capabilities. Using Artificial Intelligence (AI), data wrangling, and predictive analytics — you can quickly generate visual analytics like graphs, charts, dashboards, and infographics. Embedded analytics allows you to incorporate important insights into your service, and enterprise reporting can be easily generated and managed. Some key use cases for advanced data visualization are:
- Identifying market opportunities
- Monitoring customer data
- Reviewing performance metrics
- Comparing historical data
- Trendspotting
- Storytelling
- Analyzing relationships
These insights are invaluable to your business, and data visualization is the key to their discovery. Today’s solutions boast user-friendly, interactive dashboards that allow more of your team to analyze and utilize trends.
4. Sentiment Analysis
More and more consumers are paying attention to company values and factoring that into where they spend their money, so understanding what’s important to your customers is an essential part of data analytics today. Sentiment analysis, along with topic identification, can be used to analyze unstructured data like social media interactions, customer calls, and user reviews to get a deeper understanding of your customers’ values, wants, and needs. You can use these analytics capabilities to build brand loyalty and customer intimacy, assess risks, and optimize marketing. It’ll also help with research and development, product launches, and improving overall customer experience.
Today’s analytics solutions are rapidly evolving to meet the ever-growing demands of businesses in the Information Age. By utilizing innovative analytics capabilities, tools, and strategies, you can take advantage of this information explosion to do business more efficiently and set yourself up for future success.
