Data-Driven Decision Making: Optimizing Analytics for Maximum Impact

Team IndiaIT360
29-Aug-2024
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Data-Driven Decision Making: Optimizing Analytics for Maximum Impact

Have you ever looked up a top-rated restaurant near you on Zomato or Google? Yes! We tend to choose a restaurant based on their popularity. This is a simple example of a data-driven decision in everyday life. Now let’s look at digital natives and see how they use data driven approach to influence customer behaviour.

Using data to make right decisions is now a daily affair. We use a weather app to decide whether to carry an umbrella before stepping out. Just like the app uses weather data to predict rain, digital native businesses use customer data to understand what people like or don’t like. A music streaming service notices you listen to a lot of jazz and start recommending more jazz albums, making your experience personalized and easier to find what you need. When businesses really understand customer preferences using data, they get to stay ahead of their competition.

In the last decade, companies have started to rely more on data. Their shift from staging state infrastructure to cloud-native Data warehouse platforms for crunching data, writing ETLs and visualization layers marks this transformation. For instance, when businesses moved their data to the cloud, which is a network of servers on the internet, they could handle information the way a Quick-service restaurant serves up meals during a rush hour. This change was crucial because it allowed them to deal with more customers and transactions close to real-time without any hiccups.

Often, data is abundant but often scattered and unorganized, like a jigsaw puzzle with all the pieces mixed up. Visualization platforms (e.g. Power BI) help piece the puzzle together, creating a clear picture of market trends and customer preferences. They transform raw data into visual stories that can guide business decisions. These tools are not just for understanding external customers; they also provide insights into how the company itself is doing, from employee performance to project progress. By embracing data, digital natives can fine-tune their marketing efforts, target the right audience, and improve their internal processes.

Digital Natives grow with increased stickiness, loyalty and customer lifecycle value through continuous engagement that is guided by customer preferences. Good decisions are indeed a result of balancing insights from unstructured and structured data seamlessly.

Article Written by : Mr. Vamsi Krishna Ithamraju - Chief Technology Officer, Axis Mutual Fund

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