Data Analytics is a vast domain that requires intricate knowledge of the data and the algorithm. The big companies in their respective industries are aware of the data analytics and the value it provides. So, they have a team of data analysts, data engineers, business intelligent officer to do the function of data analytics.
But still, most of the small to medium companies don’t have the resources or the awareness to build an analyst team. So, they outsource this work to other companies that specialize in data analytics. Let us see what do they get with acquiring the help of a data analytics company and why do they opt for it.
Why do companies get analytic services from other companies?
Businesses are aware of the data analytics, but they don’t have sufficient data collected or managed. The companies may not recognize the importance of some data and they don’t back up it. They may have a poor system of storing the data which lacks the capability to integrate with the analytic software.
Businesses don’t possess the knowledge to engineer the data for their use. This is the main reason why companies opt for services from other companies. They don’t have the resource or the team to take advantage of the data that they possess.
Architecturally, the companies lack the capability to support the analytic process. The companies don’t have the system to store or manage the data. They don’t have the necessary tools built in to take advantage of their data.
The companies are not aware of the insights that they possess. Even if they have that awareness, the companies don’t know how to use it to improve their business.
Now that we’ve seen why companies opt for analytic services from other companies. Let us see the different types of services provided by the data analytic companies.
What do Analytic companies do?
Providing analytic services
This is obvious. Analytic companies provide a wide range of analytic services like sales analytics, marketing analytics, customer analytics, supply chain analytics, merchandising analytics, and many more. By analyzing these metrics, they uncover ways to improve the organization. The analytic find things like ways to optimize the supply chain, minimize the loss in manufacturing, optimizing the sales, customer retention, etc. They even create customer profiles for the companies so they can streamline their services to individual customers. After analyzing all the data, they provide the results as a visualization that can be easily understood by the customers.
Provide analytic tools
The companies provide analytic tools like data repository tools, modeling tools, visualization tools, analytic tools, etc. The analytic services companies set up these tools based on the requirements of their customers. By providing these tools, businesses can leverage their data to gain valuable insights. The tools provided by the companies are always proprietary. A company may provide all these tools or only some based on their specialization. For eg: Microsoft provides Azure cloud storage( a good data repository tool), Google provides google analytics(a good analytic tool), or Quantzig provides all these tools to improve business performance.
Provide Market Research
The analytic companies also provide the business with the data related to the current market trend. Market research is the process of collecting data about the target customer domain or the market for a business. With this data, the company can improve its offerings to a particular demographic. Whenever a company introduces its product to a new market, it does the market research or outsources the research work to other companies. It gives an edge for the company over its competitor by providing valuable information about their customers and the market. For eg: IRI is one of the leading analytics companies that provide market research as its main offering.
These are the crux of the services provided by analytic companies among many other things.
Data Analytics is still maturing, and we will see new analytic services being offered by these companies as the analytics evolves.
The analytic companies strive to improve their offerings to their customers because the competition is becoming high in the analytic space. There are more than a million of analytics companies in the world competing with each other to offer valuable services to its customers. This competition will become only high going into the next decade as more businesses start to understand the value of the analytics in their business.