What is Strategic data Analysis?
Strategic Data Analysis is the application of analytical skills in support of an organization’s strategies. It can be used in any business, but it’s particularly useful when looking at the long-term effects of decisions, such as price increases or reducing product availability. Strategic Data Analysis can help you visualize, understand, and observe data that is critical to understanding your business. It helps businesses identify trends without spending a lot of time or money. The goal of strategic data analysis is to observe, assess, and understand potential risks in the current environment.
For example, if your business partners are selling their products at more than 30% discounts on Amazon, it may be time to start producing your own products instead of buying them from other companies. An early-warning system for product pricing or competitive intelligence are just two ways the use of strategic data analysis helps businesses stay ahead of their competitors.
However, you don’t need to be the competition to benefit from strategic data analysis. Once you can see how your business is doing, you can take actions that will improve the profitability of your company. These actions might include raising prices or increasing production levels. By observing trends in the workplace and taking steps to fix any discrepancies before they become problems, employers can save money without having to fire employees. This also works for individuals who want to make informed decisions like deciding where to purchase an item instead of simply buying whatever is available at Walmart or Target.
Important Sources of Information for a Strategic Data Analyst
Assess the performance of your business environment. This involves gathering data about your company, your markets, and how you interact with these markets. Start by collecting information about the work environment to include things like emails, conversations, or notes written on a whiteboard. Data could be recorded by taking photos of the board or asking employees to document their interactions for your records.
You should also collect information about the market that you operate in. You can obtain this information by talking to customers or sales representatives who may have insight into what’s happening in the market outside of the organization itself.
Even if you don’t have direct access to data related to your business, you can still gain insight by examining trends within your company. To see how your company performs when it comes to certain tasks, identify the cost of each task you perform. Then collect information on when employees are doing these tasks to see when they are productive and efficient, and when they aren’t.
Make note of tasks that employees frequently perform. When an employee is repeatedly assigned to perform the same task or doesn’t get enough time to do it effectively, he or she may be performing poorly in other areas. If the employee simply needs more training so they’re better equipped to act on data before they can effectively do their job, then you’ll know which employees need additional training fastest.
Evaluate consumer demand within your industry. If you’re a car salesman, you’ll want to know what consumers are buying and at what price point. You can observe this information online or by going to a dealership and talking to the employees who sell cars.
If your business’s success depends on consumer demand, then observing trends in consumer behavior is a necessary step in strategic data analysis. Customers’ buying habits change over time due to new product releases, advertisements, or other factors. Knowing which products are popular can help your company make better decisions about which products to sell in the future.