How does data create a competitive advantage?
It's widely known that information helps to make the right business decisions. Entrepreneurs who can adequately analyse the data generated by their companies are not only able to avoid market threats, but also build a competitive advantage on their basis. How does data make it easier to become a leader? Does the Power BI system also contribute to this? You will read about it in the article.
Data analysis past and present - what has changed?
Gathering information about customers and using it to create better products and services is a strategy known for years. In the past, this process has been slow, limited in scope and challenging to scale. Why? Because it required collecting sales data or conducting customer surveys. Often the data obtained in this way was not very objective - it concerned a relatively small number of customers, or its analysis was not carried out in relation to the real needs of a given organisation.
The situation has changed dramatically with the development of cloud solutions and new technologies that allow companies to quickly process and make sense of enormous data volumes. Products and services connected to the Internet can now directly collect information about customers, including their data:
- personal and contact,
- on search behaviour,
- the choice of content,
- forms of communication,
- shopping patterns.
After being analysed by machine learning algorithms, the company's offer can be automatically adjusted to the customers' needs, thus realistically increasing the chances of finalising the transaction.
How to effectively analyse data to gain a competitive advantage?
Data analysis using spreadsheets is still often used by companies. Unfortunately, this is a method with a high risk of errors. Many entrepreneurs also have a problem with the consistent analysis of data from different sources.
The solution to this problem is modern systems such as Power BI. Thanks to them, we gain the possibility of practical analysis of data in real-time. This, in turn, means better monitoring of the progress in achieving the assumed business goals, provides current insight into the information and allows us to make more accurate decisions concerning customer service, finance, logistics, marketing and sales.
With Power BI, you can:
- combine data from multiple sources,
- create advanced reports and present them as interactive charts,
- share reports with other team members - even if you work remotely,
- monitor the condition of the company on an ongoing basis,
- ensure a rapid flow of information.
In the coming years, improving the offer with customer data will be a prerequisite for staying in the game and may give existing players an advantage over new players. By choosing modern data analysis systems, such as Power BI, you already have several benefits. You can, therefore, look to the future with optimism.