Thursday, April 28, 2011

The more detailed data you have to draw from, the more informed your business decisions can be, and the more profitable your business can become. Old news, I know, but sometimes it's nice to be reminded that analytics are relevant-- vital even, to the success of commerce.

A recent article in The New York Times claims that companies who implement "data-driven decision making" are five to six percent more profitable than those that rely on other factors (even those who choose to invest in technology). A five percent lead may sound minimal, but it's significant in today's market.

It takes a bit of time for the data to reduce down from meaningful patterns to actionable insights. The benefits of analytical input are only visible after the company has had time to adopt the new methods realized through analysis. It takes time then, to analyze the analysis, and what we're left with are visible results, a decade in the making. Regardless of the time frame, the reaction is worth it. Companies across the industry spectrum are investing in analytics, creating a noticeable boost in the number of positions available for statisticians and their cohorts.

Statistics are a key to growth. You may have known it all along, but it's good to see the masses do the math.

To read more about data-driven decision making, check out this New York Times article.