Analytics are a significant and incredibly important aspect of any business today. Analytics allow businesses to comprehensively understand how their company is performing and clearly shows where they can improve. Using analytics can also help to improve organisational learning, information management, and increase overall business intelligence.
Organisational Learning is an important aspect within businesses as it helps to further the capabilities and improve the skill sets of their employees, which in turn, can improve business performance. This learning is demonstrated through experimentation, risk-taking, and collaborative efforts to respond to changes, either internally or externally to the business.
Business Intelligence is an integral part of business in the digital age as it is the process of digging through the data of a business and analyzing it in order to understand the firms strengths and weaknesses. Importantly, business intelligence also focuses on aspects that affect how a business operates. Through using business intelligence, a firm can analyse its resource management capabilities, where they can reduce costs to maximise profits, analyse their data to influence better decision making, and recognise opportunities for innovation.
Information Management is essential for managers to understand in order for them to improve their decision making skills for the progression of the business. Information management is also beneficial to improving the way business information is communicated internally and externally.
Analytics and how they are analysed relates to businesses in term of a company being able to identify and analyse trends and patterns in their company data. This enables businesses to look into past data trends and attempt to predict what may happen in the future. Analytics also allow businesses to analyse scenarios and predict outcomes and the impact of events that affect them. This enables better decision making in a managerial context. Ultimately the goal of analytics within business is to allow for the improvement of the business by analysing data, and turing that into knowledge which can make changes to improve the business for the future. Currently, businesses are in the age of analytics 3.0, described as “the era of data-enriched offerings” and is talked about extensively in an interesting article by the Harvard Business Review of the same name.
Finally, Big Data directly correlates to analytics as big data refers to extremely large data sets that can be processed by a company to identify trends and patterns, which can in turn, help the company to predict certain aspects of how they may conduct their business in future, and what the implications of their decision making may be. Companies are now aware of the immense value big data holds once it has been processed from raw data into useable information, as this can help businesses to identify where to invest their money and time in order to achieve competitive advantage.
What may be most important is how these aforementioned aspects relate to knowledge management. Knowledge management is a series of strategies and processes which hold the purpose of identifying, capturing, structuring, leveraging, and sharing the valuable intellectual assets of company. This is necessary so that the overall performance and competitive advantage in their industry can be enhanced and increased. Knowledge management has evolved and changed over time since its conception, and is now considered a necessary part of business processes.
These aspects relate to knowledge management as they aid a business in capturing the information they need to process it into knowledge which can be stored in a company’s internal knowledge management system. Companies such as Amazon find significant value in using big data in terms of leveraging. Amazon mines the data they collect through consumers using their website and it is analysed in a way that allows them to recommend related products to their customers. Not only does Amazon use big data to track the movements and purchases of its customers, they also use it to manage the millions of products they sell. All this information is stored in Amazon’s knowledge management systems. This is why knowledge management itself is such an essential part of business processes today, as it has allowed companies, such as Amazon to become as successful as they are today.
What will be most interesting is how analytics and its capabilities are improved in the future. What will analytics 4.0 look like in terms of what it can provide a company? How will this impact upon the knowledge management and knowledge management systems for companies? How will consumers be impacted? What new tools will firms be able to use in terms of managing their information?
These fundamental aspects are pushing the boundaries for businesses in terms of how much they can know about themselves, their consumers, and how they may fare in the future. It is exciting to see these business process tools develop and increase in efficiency, allowing companies to excel and provide consumers with more.