One of the most important trends in business today is the increased use of analytics. Whether it’s big data or visualization or predictive modeling, analytics have harnessed the power of evolving technologies to help businesses gain the kind of insights that were unimaginable just a few years ago.
While many forward-thinking organizations have embraced the use of analytics, others lag behind, perhaps overwhelmed by the speed at which analytic technologies are advancing. But the truth is, you can’t afford to wait when it comes to employing analytics in your business. Here are five reasons why:
1) Ensure accuracy and integrity of your data. The banking and receivables management industries are under intense scrutiny by a variety of regulatory bodies and must comply with myriad rules and evolving legislation.
In this environment, it is imperative that you are addressing the right person and have accurate and timely information about that individual because being wrong can be both expensive and time consuming. You also need to know that the data you are buying is best in class and from a source with a proven track record.
2) You can use your data to improve your business processes. Organizations have data assets measuring their past performance and, when combined with a 360 degree view of their consumers over that same time period, they can use analytics to create insights that drive improvements to their operations. This can mean:
- Making process enhancements
- Quickly detecting issues and resolving them or even resolving them before they happen
- Predicting future outcomes
- Testing and assessment of new treatments
3) Do more with less. Analytics allows organizations to get the most out of scarce resources. Whether it is human, physical or financial capital, we all have to do more with less in today’s economy. Analytics gives organizations the capability to narrow their focus to their most valuable consumers so that for each unit of input they are realizing the most in return. By optimizing their work in this way, companies can grow profits without adding headcount or making large investments in infrastructure. They can truly do more with less.
4) Create a culture of compliance. Analytics can obviously be used to monitor and alert a business to any compliance risks or violations. At the same time, giving employees access to interactive reports that are updated in real time empowers them to act as their own chief compliance officer. In this regard, they can monitor themselves and their fellow employees. By empowering employees with these kinds of analytics, a company can foster a “culture of compliance” within the organization.
5) It is a competitive necessity. As analytics technology becomes cheaper and easier to use it will usher in an economy where analytics is as ubiquitous as the personal computer. Small and midsize companies that include your competitors will begin to adopt analytics, if they haven’t already.
Perhaps this final point is most noteworthy. In order to stay competitively relevant in today’s marketplace, analytics will need to become part of your organization’s culture and not just a department of specialists. That said, where are you on the analytics life cycle?