Data analytics, data mining, geographic information systems, they sound complicated but they are not. The objective of each is to collect, analyze and display data in an organic way that can be understood by all the stakeholders. Each step in the process builds on the previous one and the end result is information that is invaluable to business.
The most difficult step is designing and implementing a program is collecting the data. The program developer must understand how the data will be used, the type of data being collected, how it will be analyzed and displayed. Most organizations have years of data sitting in files about customers and suppliers. Information such as what they buy and how often, there is also information on the timing of supplier discounts and trends. This is the biggest source of data, historical data.
Current data is usually collected at the cash register, via loyalty programs, when coupons are redeemed (QR codes, digital and paper), using Facebook and Twitter, in fact, anywhere customers interact with a business. When historical and current data is combined it becomes predictive. It then becomes a powerful tool that can be used to develop strategies for expanding the business, as the basis for new marketing plans, even new products and services.
Once collected, the data has to be analyzed and presented in a way that can be used by the stakeholders. This is done by removing duplicates and using data mining techniques to link data to store locations to and identify trends. Major corporations such as Walmart routinely collect and use this type of data. To quote Dana Pickeys, Webinar - Geographic Business Intelligence at Walmart, "today the business world operates at the speed of decision making". They use this information make informed decisions about merchandising, locations and even hours of operation.
Twenty years ago only major organizations could afford to do this type of analysis. Fortunately services like these are now available at many price points to businesses of all sizes. This means that even the smallest business can use this type of information in their decision making process. They can then use is the knowledge to reshape the business and make them more competitive.
Geographic Information Systems are a great way to display this type of data. They can be used to add a special component to the data, one that shows not only what is happening but where it is happening. Now it will be obvious where customers are located and when combined with demographic information shows where population growth is happening and new potential customers are located.
