Business organizations and companies are using data analysis to gain actionable insights and predict the possible future events on a continuous basis. The companies collect and store this massive data and run analysis to extract the actionable business insights. But the extraction of useful and meaningful data from stored data according to the current needs of the businesses is still a challenge for the companies. One way to analyze data to obtain useful insights for the business is with the help of data scientists. But data scientist might be an expensive hire for mid-size or small companies and businesses.

Data Analysis

The question is how to utilize massive big data to dig out the insights which are critical for the success of the business? This article provides you with some quick handy tips which are helpful to analyze big data to obtain useful information that will lead the company to timely actions.

Quick and Easy Steps to Gain Actionable Insights:

Here is how a company or business can use data analysis to obtain meaningful and actionable insights without even an actual data scientist. The Chief Data Scientist for Lithium Technologies, Dr. Michael Wu has suggested some easy steps which the companies can follow to get the desired information for their needs.

  • Step 1 – Identify the Problem the Business Wants to Solve:

To start obtaining the actionable data the companies must identify the problems it is facing during the present time. Wu has recommended that companies shall obtain all the data and information because this data will be helpful for future situations and problems too. In this way, the company will have a more valuable, longer shelf-life data. According to Wu, “If you want to have a big data initiative or a big data strategy, first identify some problems so that the data that you collected will have more immediate value.”

  • Step 2 – Maximize the Social Media Awareness & Efforts:

Once the company has identified the problem and has collected all the relevant data to solve the problem the next thing it requires to do is to maximize awareness through social media. The people contribute a lot in social media these days and therefore the marketers need to run a simple analysis to see what kind of attributes and information on their consumers they require to solve a certain problem. Also, the companies must increase their social media efforts and awareness.

  • Step 3 – Begin with Descriptive Analysis:

The data analysis has been categorized into 3 classes to turn raw data into useful and meaningful business insights. There is descriptive, predictive and prescriptive data analytics. About 80% of the companies use descriptive analytics because it provides a summary of historical data in a dashboard format. Therefore Wu suggested that companies shall begin their data analysis using descriptive analytics and once they gather enough data and experience they can easily run predictive or prescriptive analytics to get more sophisticated and rational insights for their business.

  • Step 4 – Use Predictive Analytics:

The next class of data analytics is ‘Predictive analytics’ which is the most simple and easy of all the three classes. The company can use these analytics to compute and learn about the sentiments of their customers. The company need to have information about the existing trend and put the data in a predictive model and the model will map out all the useful information. With the help of predictive analytics, the company can predict whether a certain trend could be followed in the future or not.

On the other hand, the predictive model can be used to predict the sentiments of the consumers. To get insights into consumers’ sentiments the company shall gather data from social media in a predictive model and run the analysis. The predictive model will show the company whether the consumer will have a positive or negative response for its product/service.

  • Step 5 – Use Prescriptive Analytics:

After gathering sufficient information by using descriptive and predictive analytics, the company will be ready for the prescriptive analytics. This class of data analytics provides insight and information regarding the company’s KPIs. With the help of this information, the company can learn how it can meet its KPIs. This analytics guides the business how to achieve the highest consumer satisfaction by keeping the costs low and generate high revenue.

Prescriptive Analytics and Its Benefits:

Prescriptive analytics is key for drawing actionable insights but it also helps the company with some other aspects too. Dr. Wu has explained how prescriptive analytics plays a key role in a company’s action. According to him, the prescriptive analytics summarizes the other two classes of data analytics. It provides a window to carry out the predictive analysis. The predictions made within the prescriptive analytics windows are acceptable and does not leave a great impact on actionable insights.

  • Step 6 – Gain the Actionable Insights:

Actionable insights or results means a course of actions which a company shall adopt to get the best possible results. All the three analytics, descriptive, predictive and prescriptive are helpful for obtaining the actionable insights. According to Wu, these analytics enables the decision makers to know the required actions, how to respond to certain situations to maximize results and when and how to apply these actions. Taking an appropriate action for a certain situation/problem using the actionable insight is also a part of prescriptive analytics.

Dr. Wu also said that is important to take actions to deal with a certain situation because getting the actionable insights only will not change the situation of the company.

Reaction Time:

Dr. Wu further explains that the company/business organization requires another measure when it comes to ‘action-ability’. This measure is known as the ‘Reaction Time’ which estimates the time in which the company needs to take a certain action using the predictions and insights from analytics. In addition, this measure also computes the time which the company may take to complete a certain action. The big data is massive data which can be customized and altered to scrape out the useful information for the betterment of a business. All it requires is the correct technologies and analytical models to get the desired results.

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