What is the growing importance of analytics?

We have seen that you can see on your screen that US UK Australia Germany Canada the Indian companies are providing analytics as a service to all of these countries and within India also the share of that revenue has increased over the last year substantially and that is something which is again which shows the importance of analytics the growing importance of analytics and the usage of analytics within even the smallest of the organizations have actually started using analytics to their advantage and benefit and that is something which is showing in the result.

If we see the data which was published by the mass comm very recently they show that the companies which are doing which are actually top-performing companies are using data and analytics five times more than the companies which are performing less and that that itself speaks a lot about the kind of importance and NIC’s can be associated with and similarly analytics is something which is not one separate domain it is something which serves all the different domains whether you are in banking and finance or marketing or e-commerce or retail telecom healthcare hospitality every industry is touched by analytics the only different thing is that the knowledge and the understanding about different industry changes the way you apply analytics its tools and techniques remain the same.

How well you know about that industry that is something which keeps changing from one domain to the another and that is where we are seeing B FSI is something which is leading the market in terms of the market size it is one of the biggest contributors then marketing advertising e-commerce retail these segments are using analytics heavily and they are generating revenue, in turn, using their services using the analytical tools and techniques as a service for their own organizations.

Similarly, if we talk about the cities where we are seeing growth in the analytics domain then Delhi Bangalore Mumbai, of course, our Hyderabad are the top cities that are leading the pack Pune and Chennai were already there in the analytics market the market size is increasing every year by some percentage points and Kolkata is something which we have seen that it has come up with one more new city as one of the cities where analytics market is actually expanding not at a very fast pace but yet but yes there is are scope available within that city also.

Now, what are the key drivers and the impact why analytics has suddenly picked up the pace was it that data was not there earlier and suddenly we have found out that that there are tons of data and we can utilize that knowledge, so data was to a certain extent it was still there a lot of data has now been generated because the advent of the internet and platforms like Google and Facebook because of these activities the availability of smartphones and mobile phones availability of 3G 4G 4G network all these things are actually contributing to the availability of data in a much easier manner as compared to what it was earlier and gone are the days when actually we used to pardon me gone are the days when we actually used to make decisions based on a hunch or previous experience.

Now, most organizations are dealing with the object in which they want to achieve purely based on what the data suggest them now imagine an organization like Google right we call data the new oil the reason why we call data is the new oil because it is one of the most important and the most valuable resource which is available a company like Google I’m sure a lot of you will be using Android phone a lot of you will be using Google services but at this point of time Google knows most of the things about you where have you parked your car on which road do you generally drive from your office to work or from your work to the office where do you generally eat what kind of food you eat.

What kind of clothes you might wear your ordering groceries from what kind of song you like what kind of things which you like to purchase online all those things which possibly can would all you would want to keep that as a secret Google knows that and imagine someone having so much information about you how much of an influence that particular organization can have in terms of your buying behavior or spending pattern now I just share a small example of how a company is using analytics to market the products in a much better manner right.

I’m sure a lot of you will be knowing about the company known as the target is a company it’s a retail chain in the US and what they did was that they they have multiple stores and they analyzed the data and they figured out that a lot of in fact majority of the men between age group they were coming to their stores and they were actually buying beer from their store now generally when we see that if someone is buying beer our usual experience or hunt says that ok they will be buying a snack or something on the sides along with view which will go in a company in the pier but that is something which we would have done that analysis just based on experience and the hunch and thinking that ok.

A peanut sells much better than the beer much better along with the veer but by doing an analysis they found out that men in a specific age group that were I think between the 35 to 40 age group they what they were doing was they were buying beer and along with that they were buying diapers now this is a combination which you generally do not expect that someone but going to someone is going to buy a beer pack and they are also buying diaper along with that and most of them were doing that and they were able to figure this out by doing tons of calculation using tools which are available at their disposal and based on that.

They were able to make a better marketing decision based on that they were able to make a better product placement decision within their store that ok beer and diapers can be placed much closer to each other because the sales were likely to be on a higher side there is an in fact if someone is interested you can definitely go and check on you check the case study which is available online there you can you will find more insights from that that how the target is using analytics to drive its business and similarly most of the retail chain in India are actually using analytics to drive their business a lot of analytics is being used in the predictive analysis area.

So for example airline companies are using predictive analytics to their advantage they are trying to predict that when will their engine fails when will the engine develop a snag or when will the p develop a snag and they are monitoring the data which is being generated by the engine on in a real-time basis and what they can do is that they can predict when their engine is going to develop a snack so for example and an Air India plane which is flying from Mumbai to say Nepal or jam neither the Air India would want their plane to be serviced in Mumbai because they have their service station in Mumbai their equipment tools their manpower is available in Mumbai to service their plane rather than Anna so what they will do that by using predictive maintenance or predictive analytics they can identify that okay.

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