6 Ways Cognitive Analytics Contributes To Business Profitability
The ocean of data is deep and seemingly limitless, and its levels are rising exponentially. To stay afloat in the competitive market today and reap good ROI, businesses must learn to connect their data analytics strategy to their business decisions. Here, we are discussing the multiple ways in which cognitive analytics can help your business maximize revenue by converting your data into actionable insights.
What is Cognitive Analytics?
Cognitive analytics is a field of analytics which equips a computerized model to imitate the human thought process, which in turn supports business intelligence and a better decision-making process.
In other words, this branch of analytics draws inferences from the patterns deduced from data provided, and then draws conclusions based on the available knowledge. It then puts the findings back into the knowledge base and thus keeps building a system that gets smarter with time, just like a human mind. These patterns, inferences, and conclusions enable businesses to make smarter decisions and reap increased ROI.
Related Reading: What is Cognitive Computing?
The leading market research firm MarketsandMarkets estimates that by 2022, the cognitive market size will increase by USD 10.95 billion at a Compound Annual Growth Rate (CAGR) of 42.9%.
The report forecasts that many businesses are turning to cognitive analytics to increase their ROI. The challenge is in knowing how to churn data into useful insights that will augment your business growth.
Churn it Right to Get True Insight
Economic Scholar W. E. B. Du Bois once said: “when you have mastered numbers you will in fact no longer be reading numbers, any more than you read words when reading books; you will be reading meanings.” How true that is with cognitive analytics! When you do it right, you gain incredible insights that help you make smarter and better decisions; which in turn will help you reap ROI.
Here are a few ways to effectively apply cognitive analytics in your business:
1. Start small, with a focus on the long term
As businesses are moving from preserving data to sharing it, they also need to learn how to create and capitalize on new opportunities. To achieve your goals, you need to make detailed plans in collaboration with technology experts. Since cognitive technologies generally support individual tasks, scaling up would require integration with processes and existing systems.
Approach cognitive analytics with the focus on modernizing your existing systems. Such an approach minimizes risks, maximizes revenue, solves business issues, and redefines customer experiences.
2. Don’t get hung up on perfection
If you are trying to source data either through commercial or open sources, it is smarter to have specific use cases in mind. Additionally, to drive new insights, it is helpful to have different data sets interconnected. This helps you fill the gaps between data and increases the quality and usability of the data. Clearly, it is not enough to achieve or build up complex data, which could take years. Aim to start with what you already have.
3. Do not hoard data ownership and access
Cognitive analytics can successfully reap ROI when the organization gives data access to as many people as is necessary. This includes all those who are involved in data definition, data verification, data creation, data curation, and data validation. If you want to tap into the true value of data, it is imperative to design an effective data governance policy.
4. Ensure talents matches the task
If you want to get your frontline staff to use the data insights, it isn’t enough to upgrade your software. It is important to integrate insights into everyday workflow. Find ways to eliminate the underlying distrust of analytics among individual members of your staff. Ensure that everyone involved receives the necessary training and analytics literacy. Matching the right talent with the right task ensures that your organization has better insights and can help you make better decisions which leads to higher ROI.
5. Use a secure and reliable hybrid cloud
Having a secure and reliable hybrid cloud enables your organization to link data across multiple cloud environments. It also makes sure that your staff can search and locate data quickly from the cloud.
Related Reading: Why Cloud-First Businesses Should Consider Hyper Hybrid Cloud?
6. Encourage generating counterintuitive insights and new ideas quickly
To keep your business on the cutting edge, your staff should feel free to come up with new ideas and try them out before you finalize or discard an idea. To this end, it is vital to provide the appropriate environment, tools, and technology to your staff. Encourage them to find new features quickly, run correlations and perform the analysis.
Set up Fundamental Building Blocks
We have seen the fundamental building blocks of cognitive analytics.
Besides transforming the execution of core business functions, it is also changing the nature of competition. To achieve the true purpose of cognitive analytics, that is, churning data into insights, you must strengthen your business’s fundamental building blocks.
Stay ahead of your competition by utilizing Fingent’s analytics and visualization services. Develop the ability to read not just data or numbers, but to infer insights, and use them to increase your return on investment. Take the next step in analyzing your big data by connecting with our expert.