data analytics

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Data Analytics: New tech fuel for local business growth

Businesses that harness the power of data analytics are 19 times more likely to be more profitable and to grow, research has shown.

data analytics

Image by AdobeStock

Businesses that harness the power of data and analytics are more likely to grow their revenue and profits according to research by McKinsey and Company.

This was the word from data analytics platform, Tableua’s, senior manager Kate Skrypchenko, which has partnered with global Data Cloud firm, Snowflake, that launched this week in South Africa, quite appropriately with the first heavy snowfall to envelop the country’s Drakensberg mountain peaks and foothills this winter. The Data Cloud is a global network where thousands of organisations mobilise data with almost unlimited scale, concurrency and performance. Inside the Data Cloud, organisations unite their siloed data, discover and securely share governed data, and execute diverse analytic workloads.

Speaking at the launch of Snowflake this week Kate Skrypchenko said that the research had shown that firms should harness the power of analytics to fuel growth. 

“Data-driven companies perform better. They are more likely to add customers, 6,5% more likely to retain customers and 19 times more likely to be profitable,” she said.

She said they are also 1.5 times more likely to report revenue growth exceeding 10%. 

“Becoming a digital business is no longer a nice to have but is becoming imperative. Data is a key to creating personalised communications that customers have come to expect from you so they can recognise the full benefit of customer centric services,” she said.

She said that analytics also improved businesses’ internal departmental communications.

However, she added that 92% of organisations were still failing to scale analytics.

“Nine out of ten companies are failing to scale analytics and they are missing out on those business changing benefits,” she said.

She added that analytics enabled firms to monitor their Key Performance Indexes and give IT professionals real time information on how customers use and interact with the business.

Snowflake regional manager for the UK and South Africa, Markus Schmaus, said that the retail sector in SA had been an early adopter of data analytics, while in countries where the firm was already established, the gaming and marketing sector incorporated the technology.