The Value of Business Analytics

IT systems value cannot be found in the technology alone. But the value of business analytics could be great if you do it right. It has the potential to change your company to the better. It’s first when you use it as a part of your process it becomes valuable. Business intelligence systems can play an important role in organisational knowing.

I think all managers and team leaders have at some point had a hunch of what they need. Imagine e.g. knowing deep down that you need more agents, but your boss won’t listen to you because he does not see what you see. This is where the value of business analytics shows because it helps the team leader with data selection and articulation (source; research paper). With the addition of data you are not only basing your arguments on intangible arguments but you have proof. You have the confidence to negotiate and the data that will visualize the need for your boss.

Research also shows that shareholders of a company will favor announcements that was backed by business analytics (source; research paper). Studies have shown that these reports have a positive effect on market return. There is value of business analytics both to small and large companies.

The Value of Business Analytics – The value of commitment

We also see a positive correlation between the commitment to an IT system and financial performance (source; research paper). There are four commitments we see in studies that especially affect the financial performance. First we have strategic choice making; which means having a standard process in how you make decisions, as automated as possible (source; research paper), and making sure the data will be shared with all the people who needs it. Second, having one digital platform which gather as many of the needs for decision making as possible. We also see that how you work with information is crucial, both working smart with it and making action-oriented assessments in connection to the data. Limit the number of metrics and link all actions to actual goals.

The Value of Business Analytics – Conclusion and tips

To sum it up, when you work with business analytics let it help you model most aspects of your organisation. But make sure to keep the ‘How’ (when you model the who, what, how) flexible (source; research paper). If you in a customer service force your agents to follow a script then that will obvious to you customer. The agent will be less engaged in the conversation and it will affect this opportunity to build a relationship with your customer. Another tip I have is to keep the use of business analytics engaging for your employees. Use gamification and visualisations whenever it’s possible. Implement mobile devices and dashboards, it will make it accessible to anyone who is interested.

As the blog post should show there are clear financial gains to a business analytics system. But the value of business analytics is connected to how you work with it. I talked about shaping your process around the system in this blog post, and that is crucial here as well. Read the blog post “The Future Customer Service” or contact me or my colleagues for a conversationabout how we can help you build a business analytics-based process for you customer service.

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