Measuring the value of analytics skills and strategies in business
Brought to you by the Villanova School of Business
Analytics are a powerful tool in business, yielding deep insights into customer behavior, market conditions and operational efficiency. As data specialists contribute to growing an organization, they must be able to show the results of their work. That makes learning to communicate the value of data a vital part of earning a master’s in business analytics.
Analytics professionals need a clear understanding of how quantitative information leads to strategic innovation and ultimately makes a positive difference in the bottom line. A data-driven approach helps a company make wiser decisions and plan more effectively for the future. When the people equipped with analytics knowledge and skills gather the necessary evidence, they can show executives how the investment in big data is helping the company.
Distinguish different types of value
When establishing a long-term data strategy, it’s essential to consider how new tools and processes will lead to a measurable and significant return on investment. Breaking down what information gathering and processing is accomplishing for the company starts with considering the multiple forms that value can take.
For example, gathering data on customer relationships might present value in terms of volume, or how much useful information the company gains about the people buying its products and services. Analytics can also offer direction for measurable changes in how quickly the organization gathers these insights, the variety of information it has on file and how consistently that data proves to be accurate. All of these shifts can be monitored and lead to noticeable changes in how the organization connects with its customers to maintain lasting relationships.
Discover the KPIs for your organization
Tracking key performance indicators (KPIs) for an analytics initiative provides a gauge for how the strategy is adding value, as well as signs for how these processes could be improved. To get the most valid sense of the outcomes for any individual business, the KPIs must be carefully tailored to their needs. Emphasizing the correct metrics helps the organization shift over to a data-driven strategy and discover the benefits of analytics.
One important metric is how quickly the data infrastructure makes findings available to teams for analysis. From there, it’s worthwhile to consider the efficiency of data modeling in bringing together multiple sources of information. Analytics professionals should also take into account the overall time required to go from gathering data to finding new insights and whether that speed is sufficient to make an impact on urgent decisions.
Look forward to changes ahead
Along with the immediately actionable intelligence available from gathering quantitative information, analytics pays major dividends for long-term planning. Advanced operations like predictive analytics and machine learning build value through enhanced strategy and risk management. Close attention to how related metrics shift over the course of months and years with new initiatives reveals how big data is affecting the organization’s prospects for ongoing growth.
One such measurement is customer lifetime value, commonly used by marketers to find how much a customer is worth to a company based on past behavior. With predictive analytics in place, this number is based on a more robust set of data, revealing the patterns of behavior that stand behind customer retention. As advanced analytics provides the means to maximize profitability and maintain loyalty, decision-makers can see why these techniques matter for the organization.
Seek an education that adds value
Taking part in the data gathering and analysis that allows a company to build for the future starts with learning the applicable skills and tools. Experts in big data are valuable resources to the organization, filling key roles such as management analyst, advertising and promotions manager, statistician, and computer and information systems manager. Companies of all kinds are increasingly recognizing the worth of employees and leaders who have the necessary background to deliver measurable results through analytics.
Earning a master’s in analytics familiarizes graduates with the systems and tools needed in today’s data-driven businesses. They add value to organizations, using the skills they learn to collect quantitative information, find insights and make recommendations. People capable of managing data efficiently and providing strategic guidance are in demand at a wide range of organizations.
A Villanova master’s in analytics can be the start of a career in helping companies find sustainable value in the information they collect. Visit the program page to find out more about the program and learn how to apply.Recommended Readings: