The Role of Data Analytics in Business Software: Driving Informed Decision-Making
By Space Coast Daily // November 10, 2023
Intuition-based business has lost its credibility. Now, businesses use data analytics to drive major decisions.
They use data to get a competitive edge, understand upcoming trends, identify opportunities and risks, induce efficient operations, and develop business software to make informed decisions.
But what is data analytics, and how does a business implement them in its system? Read on to know.
What is Data Analytics in Business Software?
Data analytics is the process of turning data into knowledgeable insights that further help businesses make informed decisions.
In the business software context, it is the process of acquiring and understanding and using data to develop software specific to businesses. For instance, an eCommerce platform can use data like purchase history product search queries to develop and further enhance its software to provide its customers with a seamless user experience.
Software development companies leverage these data sets to help businesses develop software across all industries to achieve their business goals.
Steps to Implement Data-Driven Decision-Making for Businesses
Software companies follow a set of steps to produce data-driven software for businesses to experience growth and achieve business targets.
Step 1: Firstly, software development companies understand the objectives and key performance metrics essential to the business. This helps them develop data-rich software specific to businesses.
Step 2: Development companies use relevant data sources to collect the data. For instance, they use company resources and credible websites to personalize the software for businesses.
Step 3: Software companies have a set of tools and techniques at their disposal, which they use to uncover patterns and insights in the sourced data. This data analysis is what distinguishes the software development process for businesses.
Step 4: Next, the development companies communicate the insights derived from the data analytic process to the stakeholders. And after approval, the necessary software induced by data analytics is developed for businesses.
Step 5: Lastly, the concerned companies monitor and further evaluate the outcomes of the software developed. They adjust the strategy accordingly to accommodate further objectives and KPIs of businesses.
Role of Data Analytics in Software Development for Businesses
- It Helps Identify Customer Preferences
Data analytics helps development companies understand the customer preferences of the businesses. It analyses past customer behavior and interactions with the brand, their preferred payment methods, the pain points of using the software, etc. This insight is then incorporated into the software, which in turn helps the business give its customers what they need.
- Improved Cost Savings and Resource Allocation
Software companies analyze operational data to identify areas of inefficiencies within the system. They analyze areas where excess cost is inflicted and try to improve them with efficient cost-saving mechanisms.
Additionally, they also use this set of data to allocate resources more efficiently within the business. The data-driven software can help businesses strategically assign tasks, reduce downtime, and improve organizational productivity.
- Optimizing Operations
Data analytics-induced software helps development companies monitor key performance indicators (KPIs) of the industry, delivery times for eCommerce companies, inventory levels, transportation costs, quality issues, etc. Additionally, digital operations like understanding online customer behavior and reducing system loading speed are also corrected with efficient data-driven software. This way, the software can help businesses optimize their operations both on the physical and digital levels.
- Smooth Integration with Other Tools
Software and application development companies can analyze data and software integration needs and requirements of a business and then develop software that allows for smooth integration.
For instance, some businesses might need to integrate with software like Salesforce, Dropbox, CVS Files, Google Analytics, etc. Then, development companies can devise software that allows all these different software to integrate seamlessly with the system.
- Better Reports and Dashboard Accessibility
Be it small, medium or large enterprises, reports are essential. Application development companies understand this and thus use business data to produce software that leads to better reports and dashboard accessibility.
They develop Android, iOS and Windows apps that enable seamless report visibility for the remote and in-office teams.
- Smooth Technical Workings
Development companies properly analyze business requirements to identify system flaws like lagging increased software opening speed and produce software where these issues are rectified.
They ensure user-friendly interactive and intuitive graphics, smooth functionality, efficient reports and dashboards, easy system navigation, and other important factors to ensure smooth technical operations within the business.
- Improved Scalability
With businesses scaling at an unprecedented speed and having both remote as well as in-office teams, it is essential that they have software that enables efficient scalability.
Companies that develop apps and software thus use business data like number of employees, demographic of employees, age, gender, and other relevant data to produce software that can seamlessly accommodate these ever-growing teams of diverse employees.
Top Examples of Data-Driven Decision-Making in Business
Amazon collects customer data and uses it to provide customers with an efficient customer experience. It collects data like purchase history, search queries, and browsing behavior to provide product recommendations to its customers. The business software uses machine learning techniques to understand these factors and provides customers with personalized product recommendations. This enhances the overall experience of using Amazon for its customers.
Netflix is another such business that has grown owing to data analytics. It uses data to understand the type of content its users prefer watching. For instance, shows like “House of Cards” were developed and published on Netflix based on data from Netflix software. It received 30 million plays daily, and the subscription rate increased to 4 million after this show.
Despite having access to extensive data, it may not prove valuable unless it is tailored to your particular business needs. Therefore, it is advisable to reach out to software and application development firms to create software solutions that enable efficient data analytics and support industry-specific decision-making. This approach also helps manage software development costs effectively.