Many companies have started to invest in data interpretation solutions. This is a relatively new field with endless benefits for any person, institution, or business, opening a new universe of opportunities. No matter what business decisions you have to make, data-driven decision-making can have a crucial impact on your firm’s growth. These are the main four benefits of data interpretation and why businesses should use it along with other intelligence business tools!
What is data interpretation?
Numbers and information have no meaning unless we analyze them. We need to interpret numbers to reach conclusions and make decisions. To ensure your business success, we need to make the best decisions for our companies regarding every aspect. Given the abundance of information and data available online, it is obvious why businesses have started to invest in data interpretation tools.
Nowadays, a competitive edge is highly dependent on our ability to read and interpret data correctly. The main issue stems from ensuring that our interpretation and analysis are correct, which is why numerous businesses hire data interpretation professionals.
From a business perspective, data interpretation is defined as a collection of processes and methods through which data relevant to your company are collected and analyzed with the purpose of drawing conclusions. These conclusions may relate to insights, patterns, and behaviors that help you make better business decisions.
Benefits of Data Interpretation
As briefly stated above, data interpretation’s main benefit is that you can make decisions based on facts rather than intuition or emotion. It can be used to predict trends, behaviors, make forecasts related to your business, and many more. In addition to this, correct and timely data interpretation can help you spot issues or problems and solve them efficiently.
Furthermore, companies that implement efficient data interpretation can collect relevant data about their own performance, processes, and other business-related aspects. As a result, it makes it easier to spot challenges or problems as they arise so that management can find solutions in a timely manner. This also improves the quality of decisions related to the future of the business.
Data interpretations help you craft frameworks, policies, and processes that are custom-tailored to your business. For example, if you want to improve work productivity, there is no one-stop-solution for it. Instead, collecting data relevant to your business and analyzing it can offer you a clear insight into what can be improved in your company.
Although many businesses invest money in data interpretation, many business professionals do not regard it as an expense. Instead, this investment will help you reduce costs and make your business more efficient.
For example, Intel managed to save more than $3 million in manufacturing costs in 2012 because of data interpretation and analysis. More specifically, before 2012, Intel used to carry out more than 19,000 manufacturing tests on its chips before releasing them on the market. The company implemented predictive data analyses that used current and historical data, so it managed to avoid the 19,000 tests by implementing only individual, specific tests for chips.
Similarly, Norfolk Southern is a train company that managed to save more than $200 million by using software that monitored rail traffic; using this data. They managed to make each train run one mile per hour faster, leading to impressively reduced expenses for the company.
Identify trends and boost profitability
Data collected from your customers and the general market can lead to improved profitability. More specifically, you can interpret data and identify trends and patterns, then create actionable forecasts. Industry trends or estimates of consumer preferences can provide a robust competitive edge, allowing you to remain one step ahead of your competitors.
For example, Shazam is a mobile application that allows users to record a song they like but do not know the artist or the title. With this data from millions of song identifications, Shazam has the power of predicting the future success of artists. This is not only relevant for Shazam but also for record label companies that can gain an insight into the industry trends.
The benefits of data interpretation cannot be overlooked. Although many companies focus on generating revenues rather than saving costs, Intel and Norfolk Southern’s examples show that businesses should not disregard this data interpretation potential.
Data advancements in this digital age have already started to provide precise competitive edges for companies, and it is only evident that the future may hold even more applications. Until then, data interpretation’s main benefits cannot be disregarded, no matter what industry or field your business is in. Managers and business owners must understand what data interpretation is and how they can leverage it for profitability, cost efficiency, and productivity purposes, among others.