The term 'actionable analytics' is being thrown around a lot these days—but what's actually behind this trend? Companies that invest in their IT infrastructure have found ways to improve other areas of the organization by reviewing trends embedded in data. What's the reward? The ability to cut costs in nearly every department.
Data evolution
Analytics have always been at the forefront of any successful business operation, but the malleability of these numbers is taking on a whole new role. According to Accenture, a mix of faster computing speeds, flexible data storage solutions and more interconnected technologies through the Internet of Things is leading the way to broader use of these figures.
Actionable analytics, at its core, is really just quantitative analysis being used to have a tangible impact. This could manifest itself in quicker shipping times for a logistics company, insight into energy consumption for a hospital or simply better decision-making. In this day and age, you can never have enough information—unless your data center can't handle it.
Highly adaptable and modern storage solutions like software-defined storage are becoming increasingly necessary for a company to make any real impact with actionable analytics. Services like IBM Spectrum allow these businesses to grow at alarming rates without sacrificing ability, as the storage solution can scale. Gartner reported big data analytics are driven by mobile and social platforms, which require this high level of performance at large companies.
Although some organizations will need to make an investment in their IT infrastructure to really capture the power of actionable analytics, Accenture reported those who do normally yield a return. The study found that high performing companies are five times more likely to use analytics in some capacity.
Implementing quantitative analysis
Venturing into the world of big data and analytics is no easy task. Even the most experienced mathematicians can easily become lost in a sea of data. After installing software-defined storage as the infrastructure to carry this transformation, you'll want to take some time to plan out how you'll use the findings.
Smart Insights reported that companies should first narrow down exactly which department they want to improveand how they'll collect data to do so. This may require devices be connected to feed information between them.
Being able to sift useful numbers from those that aren't is incredibly important. You need to know what you're looking for before making any kind of strategic move based off of the data you've collected. This is what separates successful companies from those that are out of business. Everyone starts with similar data—it's how you use it that matters.
Accenture reported that while you're essentially valuing data over human intuition, you still need managers' experience to figure out which insights are simply interesting, and which can become actionable analytics. Those who've spent 20 or 30 years in the industry may be reluctant to let quantitative analysis drive decision making, but their extensive background means they know how to best implement the changes.
Shifting a business' value toward analytics isn't an easy transition, but the most powerful companies in the world are letting the numbers do the heavy lifting and it's working to their benefit so far.