What is Data Analysis and Why Is It So Important for Businesses?

Big data is becoming increasingly important in today’s world. With the rise of online technology, there is a massive amount of data generated from everything we do, from surfing internet shopping sites to chatting on social media. 

Business intelligence has long relied upon data. Before the rise of technology, data analysis crunched numbers to find patterns and insights. Thanks to technology and computers, this number crunching is now a lot easier and faster. Modern data analytics looks for the same trends, patterns, and insights, but it does it in a more cost-effective way. Companies and brands then use this data as part of their decision-making processes. 

Why Do Businesses Need Data?

Businesses can’t make informed decisions without data and they rely heavily on data analytics. If a new product is in the pipeline, companies need to know that the target audience will be receptive. No company wants to spend hundreds of thousands of dollars on research and development, only to discover that a competitor has already released a similar product or customers are not interested. 

Data analysts use raw data to predict future trends, make models, and discover new things. They know what we want before we want it. Using data analytics can increase the return on investment for new products and services. 

Developing a Data Strategy

For example, let’s imagine company A is considering launching a new line of sportswear for women. The market is already saturated, but they believe there is room for their products. So, they hire a data analytics consultant to do some preliminary research. 

A data expert looks at data generated by market research. It’s their job to find out who the target customer is. If the company launches a product at a higher price point, the quality of the product will need to justify the extra cash and the target customer will be more affluent. 

There is a lot to consider, but above all else, data must be used effectively. The biggest problem with data analytics is, thanks to technology, there is a huge amount of data generated and much of it is useless or irrelevant. Sorting the wheat from the chaff is part of the job. It is very easy to get bogged down in tons of data, so a data analyst must know how to gather data from the right sources and drill down to the actual data they need to form a coherent strategy. 

A Career in Data Analytics

Thanks to the importance of data analytics, there is tremendous scope for a long-lasting and profitable career in this field. Businesses are crying out for talented data analysts to join their business intelligence teams. Look at an MBA business intelligence online program and you’ll soon see how many useful skills such a qualification can provide. For anyone looking to climb the corporate ladder, an MBA business intelligence graduate degree is a valuable investment. Whether you are searching for a career or trying to grow a business, business data analysis is a vital component. Ignore it at your peril!