Analytics provides the ability to analyze the overall performance of a business or organization. These abilities are now embedded in all types of systems that enable the utilization of analytical resources and the collection of analytical data to develop better ways of how to improve a business' performance. In the past, this information was stored and analyzed on paper that required a lot of time, money, and space.
The ability to collect more data has resulted in more sophisticated and able to provide a competitive edge to companies and to organizations. Utilizing analytics allows organizations to become more effective, efficient, and more productive. It is one of the major tools for helping organizations to survive and prosper in a rapidly changing global marketplace.
There are several ways that today's companies are utilizing analytics. In the case of traditional retailers, they utilize analytics to compare pricing between products and to analyze trends. They use analytics to determine how to best package products, send promotions, and the best way to optimize pricing by adjusting both quantity and price. Online marketers also leverage analytics to design and create websites, their most effective tool for driving traffic to their websites.
Analytical information can be used to help with making decisions and to evaluate marketing strategies. The ability to monitor product sales, customer traffic and customer satisfaction helps companies to manage their marketing dollars and to keep up with consumer needs.
Another way that companies are using analytics is to provide financial analysis. Financial analysts analyze trends to determine which strategy is the most effective for meeting company goals.
The use of analytics programs has also become much more widespread in the energy industry. Companies are using the ability to quickly determine new and useful information to provide energy companies with information that they would not have otherwise had.
In Europe, France and Germany have taken steps to increase their energy usage while there are many other European countries that are attempting to reduce their reliance on foreign oil. These countries are actively using analytics to find new sources of energy that they can afford and to discover which technologies and techniques are most cost effective and efficient.
For instance, energy analysts use analytics to help to map out Europe's power grids. Analysts use this information to see how power grids in particular regions are interconnected and how they are used. As a result, energy and utility companies will be able to cut costs and better maintain their networks.
Even financial analysis is gaining the ability to use analytics to generate and to analyze critical information. Companies in the financial services industry are using analytics to identify new ways to make money, to try and get more returns from their assets, and to see how and where to invest their capital.
All businesses and industries across the entire economy are now beginning to use analytics in an effort to improve the way they do business. Rather than just being used as a tool for identifying trends, businesses are using these tools to analyze the current state of the market, to determine which potential customers to target, and to look at a firm's and an organization's entire financial picture.
In recent years, firms have been using analytics to produce market data. While a huge amount of this market information has been published by large firms, a lot of it has been ignored by smaller firms and is not well understood by even the large companies. Now, firms that use analytics to understand the impact of their products and services have seen tremendous improvements in their bottom line, increasing their profits dramatically.