That knowledge is power is a common cliché; however, what many people tend to forget is that too much data does not equate to knowledge. This leads to the question of what a company should do with the wealth of data that they accumulate in their operations. Every company knows that this data is an asset if used right, but most are unsure as to what the exact benefits of the data are. Companies everywhere are implementing real time data analytics with what amounts to a vague idea of what the tool can do for them.
What is data analytics?
Data analytics refers to the use of specially designed data systems to derive useful information from the wealth of data that a company has acquired. Data and information are two separate things as you will come to understand. Data refers to the raw sets of details that are derived from everyday business transactions such as prices, consumer names, and so on. Information is what you get when you process this data and translate it into something actionable and usable for the growth of the business.
Real time analytics for data is focused on the ability of the company to process the data that they have accumulated as they operate. It focuses on the ability of the company to process tasks and queries on data on the go and when needed. The emphasis is placed on the time frames where the information that is derived from the data may be of actual value to the company. This is why it is beneficial for companies to process their data as quickly as possible to ensure that they get their information while the market is as yet unaware of the competitive advantage.
An interesting area of data analytics for enterprises is the use of predictive analytics. This is a tool that is intended to derive useful information about market trends and patterns, especially with a forward look. It must be clearly stated that the future is impossible for companies to predict as there is no proverbial crystal ball. However, with the right set of tools, one can make educated and informed guesses that are supported by the data derived from the market. This enables a business to make preparations for future market possibilities well beforehand and more importantly from a point of actual knowledge. These tools have been used extensively in the securities market as more and more brokers realize the value of being able to anticipate market movements before their competitors.
Benefits of business oriented data analytics
Predictive analytics enables a business to prepare for the possibilities that the market may throw at them. This makes it one of the single most useful market innovations that any business can have on their side. The ability to forecast possibilities in a volatile market environment such as stock and derivative markets is much sought after. This tool can also enable the business using it to plan their moves against the competition by identifying emerging weakness and market opportunities.
Real time data analytics provides a slew of benefits, on the other hand. One of the most important is the ability to get accurate information on the market at a cost effective price. Furthermore, the information garnered through this channel is more accurate as it inherently eliminates the biases that most consumer interactive statistical models have. By enabling a business to process data in a short period, it saves them money and creates potential income stream for the company. Additionally, real time analytics is capable of enabling a business to take corrective action before it is too late. It can be stated as deriving the information at the right time.