Tracking and analyzing critical business data can do wonders for businesses.
It allows them to uncover gaps in their processes, forecast potential issues and opportunities so they can prepare in advance, and make better quality, data-driven business decisions.
However, the rapidly changing data analytics landscape makes it challenging for businesses to keep up with the new techniques and technological advancements.
You need to understand the latest trends to harness the power of your data, gain an edge over competitors and set your business up for success.
This guide covers five data analytics trends to look out for in 2022 to keep your business thriving.
1. Cloud-based services
Investing in cloud-based services gives your business access to reliable backup solutions and seamless data recovery processes without the hassle of using physical storage servers.
Below are a few other advantages of using cloud-based services:
Cloud computing is one of the more effective ways to help improve team performance.
Staff members can easily access data and collaborate from different locations to complete projects.
Field workers can also share real-time data and updates with those working in the office, eliminating repetitive data re-entry tasks.
However, it can be daunting to choose the right cloud-based service for your business because of the numerous options on the market. After all, there are several reliable data warehouses online that companies can choose from regardless of the company’s size.
For instance, Snowflake supports numerous cloud infrastructures such as AWS, Azure, and Google Cloud, while BigQuery only supports Google Cloud.
Check out this article comparing BigQuery vs. Snowflake to see which data warehouse is right for you.
Remote cloud services offer nearly unlimited bandwidth. This allows you to quickly scale your business’s capacity to support growth or cope in case of rapid changes to your website traffic volume.
Using cloud-based services allow businesses to be more agile and easily adaptable to the ever-changing dynamics of their workflows.
Investing in cloud-based services lets your business forgo spending on expensive physical storage servers. This translates to significant savings in IT operational costs.
Also, because cloud-based services are typically deployed on a pay-per-use basis, you can pay for what your business only needs to guarantee a return on investment. This optimizes your expenditures.
The cloud is designed to automatically mirror any data it stores across other servers — instantly backing up the data in case of crashes or failures.
This gives your company reliable disaster recovery and backup solutions with little to no downtime and without setting up the backups on a physical device.
Protecting data from being stolen or accessed by unauthorized people is a primary concern for many organizations. There are many measures in place to prevent a security breach for a company.
For example, storing data on the cloud is often safer than on physical servers and data centers.
After all, laptops or computers that are stolen from your premises can give attackers access to your confidential information, compromising your data security.
Some essential cybersecurity service features include letting you store your data on the cloud, deleting confidential information remotely, or moving data to a different account when necessary.
Scalability and performance
The traditional way of planning and dealing with unexpected growth can be expensive and cumbersome.
Previously, you’d had to purchase and keep additional servers, storage, and licenses.
It could also be years before you need to use the reserve resources, which means you won’t get immediate returns on your investment.
You get additional storage space or added features exactly when you need them by using cloud-based services.
2. Smart and scalable AI
Instead of spending top dollar on highly trained and specialized data analysts to develop useful information out of your business data, you can use artificial intelligence (AI) instead. AI can achieve much better outcomes for a much cheaper investment.
Evaluating statistics and probabilities, for example, could require several analysts to process and derive meaningful data. AI, however, can process massive data sets quicker and derive accurate predictions.
3. Predictive analytics tools
Predictive analytics tools are used to identify the likelihood of a certain event occurring. These tools work by analyzing data from the past and then making predictions about the future.
Various industries employ predictive analytics in several ways. For instance, airlines use it to determine how many tickets to sell at specific prices for each flight to maximize profits.
Hotels use predictive analytics to predict the number of guests they can expect on a given night to adjust prices, maximize occupancy, and increase revenue.
That said, predictive analytics tools are becoming invaluable to business owners as they can help improve operations efficacy and efficiency.
4. Data literacy
Making strategic decisions in today’s business environment largely boils down to your company’s ability to intelligently understand, interpret, and use data.
As such, improving data literacy, the ability to understand, interpret, read, write, and communicate data in a specific context, should be one of your company’s top priorities.
5. Risk management
Risk management helps you determine the necessary tools to identify and deal with any potential risks adequately.
One of the most common approaches to risk management today is the break-even analysis. This involves crunching the numbers to determine your business’s breaking point for a given investment.
Keeping up with data analytics trends
It’s crucial for businesses to keep up with the latest data analytics trends because technology is constantly evolving and advancing.
Keeping up with data analytics trends will help you be more effective at tracking, generating, and producing helpful reports out of your data. It will also help you understand where your data comes from, where it’s going, and what it signifies, enabling you to make smarter, more effective business decisions.
Understand the data analytics trends that will make a huge impact on your business. Leverage the right strategies and tools to prepare for and move with the trends for your company’s success and growth.