Evolving Trends Affecting Digital Analytics
The technology is ever-evolving with the change resulting in unprecedented transformation in business, government and society. The current business landscape is driven by powerful digital forces, disruption and fast paced innovation. The CIOs and executives are in a rare position to transform “business as usual” and envision the future.
Infoholic Research predicts the Global Advanced Analytics market to grow at a CAGR of 26.8% during the forecast period 2016-2021.
At the forefront is this digital transformation, that is affecting the trends of digital analytics.
Talent Gap and Business Acumen in Short Supply
A significant number of CIOs maintain that talent management process itself (attract/retain) is one of their biggest gaps, as opposed to a specific skills category. The skillsets required is not on par with the technical requirements that digital analytics needs.
Rise of Prescriptive and Explanatory Analytics
Predictive analytics is an incomplete approach, as it provides only a likely outcome if nothing changes; but it doesn't explain why the outcomes are likely, the correlations driving those outcomes, or how to change those outcomes.
Prescriptive analytics is a step ahead of predictive analytics as it informs where businesses are headed but also suggests approaches to improve the outcome.
Explanatory analytics allow enterprises to understand why business decisions translate into financial outcomes. It validates the success of past actions by discerning which decisions drive revenue, and more importantly, how to use this information to guide future actions.
The context decides which device and platform a consumer is exposed to when digital analytics is used for deciphering, which attribution model should be applied. The preferred model is decided based on the amount of time, the task they want to achieve and location.
Focus on Return of Analytics Investment
Enterprises are spending a substantial portion of their revenue for digital analytics. The focus is on the return on analytics investment as business leaders want feedback on its implementation.
Customer’s Perspective in Defining Metrics
Companies should align their business goals with the customer’s perspective, viz. which analytics method is used to measure business objective at each stage of the consumer purchase cycle. This drives the company strategy towards a customer-centric measurement framework.
Analytics Governance & Improved Empowerment
Companies are shifting to a data-driven culture to take advantage of tools, people and processes in this dynamic environment with diverse data sets. The focus is on having access to one version of data and its interpretations across teams to ensure data integrity and a robust analytics governance.
Decision makers are empowered with automated self-service solutions, reports and dashboards for easy access to processed information and management.