Business Analytics in Creating a Competitive Advantage
Many organizations are venturing into management of vast data inflows to conduct business activities. There is a possibility that big data and analytics can create competitive advantage when used properly and strategically. There is great value in the use of big data. However, big data require the knowledge of business analytics professionals who succinctly understand business concerns and how they can be addressed using relevant information from data. Data experts opine that analytics can either be predictive, to understand future opportunities and challenges or prescriptive to help a business understand current operations (Bell, 2013). Big data and analytics can be used by an organization to discover new business opportunities, conduct effective marketing, improve customer care, and perfect operational efficiency.
Today, companies are using big data and analytics to gain a sustainable competitive edge and ensure return on investments. Big data and analytics provide avenues within which an organization can make informed decisions. In light of this, management is able to answer pertinent questions about operations and performance. These questions relates to customer behavior and market trends. For example, a business organization is able to discover why customers are abandoning their products and buying from their competitors. A company is able to adjust and develop long term relationship with customers for a sustainable future. Similarly, a business is able to address changing markets through improvement in production to align with current market conditions. Outsourcing business analytics complicates the ability of a business to create a sustainable competitive advantage. In many instances, outsourced services and analytics may not align with business models, operations and culture. However, management can exploit and use business analytics aspects that competitors cannot replicate. This strategy has worked well for Dell Company in the past.
Bell Peter. (2013). Creating competitive advantage using big data. Ivey Business Journal.
Retrieved from: http://iveybusinessjournal.com/publication/creating-competitive-advantage-using-big-data/. Retrieved March 2, 2018.