We live in an era where business expansion is happening every day, every hour, and every minute worldwide. In light of this phenomenon, project managers must continually take advantage of new business analytics tools that can help us to grow our business.
We must overcome every obstacle that is blocking us as business managers. Therefore, we have selected ten of the top business analytics tools every business manager should know about. Stick around to discover the top tips for your business.
#1. Data Mining
This computing process for large data sets originates at the intersection of machine learning, statistics and database systems. It’s a process of sorting through large data sets so managers can identify patterns and establish relationships.
Thus, managers are enabled to solve problems through data analysis. In addition, these business analytics tools allow enterprises to predict future trends. Data mining is also known as big data. It includes information that is collected throughout a businesses lifetime using surveys, lists, financial records, etc.
#2. Business Experiments
Business experiments enable the application of research techniques to test different hypotheses. Then such assumptions are subject to measurement, validation and analysis. This can be one of the most personal and effective business analytics tools for project managers.
This way, you can come to an evidence-based conclusion. If the conclusions are positive, then move forward with the product/service. If not, then abandon, or restructure and retest.
#3. Linear Programming
Linear programming, or linear optimization, is a method of achieving the best outcome on a set of constraints using a linear mathematical model.
The main purpose is to solve problems involving minimizing and maximizing conditions, such as how to maximize profit while minimizing costs. Furthermore, this allows you to direct your resources for maximum profit.
#4. Testable Hypothesis
Think of a testable hypothesis as an extension to business experiments. This analytics tool refers to whether something is testable or not. Every process is supposed to begin with a testable hypothesis. In other words, it should be possible to pass or fail the test based on the measured goals of the hypothesis.
Every hypothesis comes as a result of previous observations. This is similar to a real experiment in that you are testing variables. As a result, managers can follow these steps to formulate and test a hypothesis:
- Ask a question.
- Perform background research.
- Construct a hypothesis.
- Test your hypothesis with an experiment.
- Communicate and observe the results.
#5. Marketing and Sales Analytics
Marketing analytics help marketers and managers to measure, manage and analyze marketing performance. Using these business analytics tools can also maximize its effectiveness and optimize return on investment (ROI).
Understanding marketing analytics helps you to be more efficient in your business. Sales analytics is the process of understanding, identifying and predicting sales trends and sales results. All this is done while aiding the understanding of these trends and offering new ways to improve.
#6. Scenario Analysis
Scenario analysis, also known as horizon analysis, is a process that allows you to analyze a variety of possible future events. This is done by considering alternative, possible outcomes. Scenario analysis is also an essential part of the full business process.
This type of business analytics tool is a variation of making a hypothesis. So, to perform scenario analysis, follow the hypothesis steps.
#7. Monte Carlo Simulation
Monte Carlo is a computerized mathematical technique. It allows people to account for risk in quantitative analyses and decision making. Hence, this technique is used in numerous industries such as finance, project management, energy, and research & development.
It uses random parameters (or inputs) to assist in exploring the behavior of a complex system or process. This simulation offers the decision-maker a range of possible outcomes and the consequences that may occur in response to a choice of action.
#8. Time Series Analysis
Time series business analytics tools explore data to extract meaningful statistics. Usually, it assesses change over time. Or, it can help in predicting future events based on what has happened in the past.
Forecasting, often used by investors, is ongoing and involves a time series. As a result, manager can track the movement of the chosen data points over a specific period of time and recorded at regular intervals.
Furthermore, no minimum or maximum amount of time is required. The data can thus be gathered in a way that provides the information being sought by the analyst examining the activity.
#9. Video Analytics
Video analytics is the process of analyzing video to interpret data and extract insights. Furthermore, video analytics help managers form conclusions about the effectiveness of a video. In addition, it offers the opportunity to observe behavior or to see things from a different angle.
The simplest form of video analytics is Video Motion Detection (VMD). VMD works by using an algorithm which analyzes current live image data against a reference image from a previous frame.
This type of alert can also initiate many actions such as emailing the current live image. Businesses use video analytics to know more about who is visiting their stores and what those people are doing when they get there.
#10. Metadata
Metadata means “data about data.” Metadata is the data providing information about one or more aspects of the data. It summarizes basic information about data. Thus, using metadata can make tracking and working with specific data easier.
1. Descriptive metadata
First off, descriptive metadata can identify and describe collections of related information resources. This is particularly helpful to find out more about a niche-specific topic.
2. Structural metadata
Next, structural metadata relates to how a system functions or how metadata behaves. It describes the types, versions, relationships and other characteristics of digital materials.
3. Administrative metadata
Finally, administrative metadata provides information to manage a resource. For example, when and how it was created, file type, and who can access it.
Taking Advantage of Business Analytics Tools
These business analytics tools can take your marketing strategy to the next level. No matter what kind of project you are tackling, knowing the stats is a must. Most of all, next time you are struggling with management analytics, just check back to this article.
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