What is Advanced Analytics?
Consider advanced analytics as the sharpest tool in your business intelligence shed. While basic data analytics will provide descriptive insights into past events, advanced analytics take it several notch higher. It applies complex statistical models to describe past events, predict future events, and prescribe the best course of action. Think of it as turning coals into diamonds. It’s not only pretty, it’s also profitable. With advanced analytics, valuable insights are generated from dirty data, and organizations are equipped with better foresight and strategy.
Advanced analytics make use of artificial intelligence, statistical algorithms, predictive models, machine learning, among other systems. These systems process both structured and unstructured data to identify trends and automate responses to dynamic market conditions. Structured data, in particular, serves as a valuable asset, providing a clear framework that enhances the efficiency and accuracy of analytics processes. This comprehensive approach helps businesses make informed, data-driven decisions. If basic analytics is your rearview mirror—showing you what’s behind—then advanced analytics is your GPS, mapping out the fastest and most efficient route to your destination and giving you a heads-up on traffic jams (or market disruptions) along the way.
Why Consider Advanced Analytics?
The reason why the leading companies across almost every sector are turning to advanced analytics is because it brings real value. But let’s strip away the jargon and focus on the concrete advantages.
Industry Use-Case
For industries like aviation or manufacturing relying on heavy machines, any downtime experienced can be distratrous. Every minute operation is lagging leads to a decline in revenue. To prevent this, predictive models are used to forecast machinery failure. Through this, businesses can proactively maintain and increase the shelf life of their machines, saving cost in the process. General Electric (GE) is a forerunner in this niche as they continually use advanced analytics to monitor their equipment. By predicting malfunctions, the company has improved operational efficiency across their branches.
A lot of financial institutions handle billions of transactions daily, leaving a potential for fraudulent activity. With advanced analytics, these institutions detect atypical patterns and activities in real time. They constantly use ML algorithms to analyze user behavior and transactions to predict and prevent fraud. JPMorgan Chase, for instance, uses AI to enhance its fraud detection capabilities. These systems have helped the bank detect and mitigate fraudulent transactions faster and with higher accuracy than traditional methods.
For retailers, it is the secret sauce behind personalized marketing campaigns that feel custom-made for each consumer. By analyzing purchasing behaviors, browsing habits, and even social media interactions, advanced analytics helps companies craft personalized offers that resonate with individual customers. This leads to higher conversion rates, increased sales, and greater customer loyalty. Retail giant Amazon has long been a pioneer in this area, using neural networks (a branch of machine learning) to predict what you’ll buy next. Their recommendation engine is one of the most advanced in the world, consistently driving additional purchases and boosting customer satisfaction.
What’s Next?
Standing still is the same as moving backwards. Don’t be left out in utilizing solutions that give you an edge over competitors. Remember, it’s not just about collecting data; it’s about putting that data to work. Businesses that fail to leverage advanced analytics are like those using a map while their competitors are using GPS. And we all know who gets to the destination faster. Reach out to Joyful Craftsmen to help you handle your analytics and position your business for success!
IVAN JELIC
Group-CEO and General Manager CH
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