In this century, companies and businesses handle large volumes of data from their day-to-day operations. Basically, data analytics plays a significant role in ensuring that it uses data to obtain insights and make informed decisions. It is the theory portrayed in this Ted Talk essay on “Big Data, Small Farms and a Tale of Two Tomatoes” by Erin Baumgartner. Although some managers overlook the essence of using data analytics when making decisions, businesses should use data because it will help them build a sustainable system, as Baumgartner suggests.
Importance of Data Analytics
The main point is that data analytics plays an essential role in supporting the establishment of sustainable solutions in businesses. For instance, data analytics provides insights useful for the company and customers (Atchison par. 3). Basically, data analysis can reveal the relationship between business performance and profit or customer satisfaction. Also, such relationships enable managers to establish feasible solutions to ensure the quality of products and services and ensure the business’s economic growth. Therefore, companies should use data analytics to develop sustainable solutions, which leads to a competitive advantage.
Considering Customers’ Need
This video is important for considering customers’ needs first rather than business profits. For example, there are many failed companies due to poor decision-making aspects during their operations (Waller and Fawcett 77). In this case, owners cannot collect and analyze data on their customers’ preferences, interests, and concerns. Hence, they fail to make essential trends and predictions on their customers. Such companies would perform better if companies embrace data analytics in understanding customers better and building stronger relationships with them.
The information in the video is crucial because Baumgartner shows the relevance of using data analytics for businesses’ decision-making. For instance, analytics helps create a consistent demand, investigate the future, and forecast demand for farmers throughout the year (Baumgartner 00:12:06-00:12:48). In particular, farmers can plan accordingly and produce the correct quantity of goods for consumers. Therefore, the video shows the importance of using data analytics in decision making to develop marketing strategies for a business.
Applying Data Analysis
Owners can apply data analysis in managing any business. For instance, companies that use data to derive insights achieved better on economic and operational measures and are 6% more profit-making and 5% more productive than their counterparts (Waller and Fawcett 77). This evidence shows the relevance of using data to make efficient decisions and ensure the business is more profitable. However, most companies do not use data analytics in their operation. From the reviewed material, companies should adapt to using data analytics to unlock the power to grow.
A business can make profits while providing its customers the best. For instance, some companies create many other forms of wealth and well-being for their stakeholders while delivering superior financial results (Mackey and Sisodia 283). Basically, a company can be very profitable and competitive because of creating value for their customers. Hence, businesses should focus not only on profit-making but also on customer value and satisfaction to enhance competitive advantage.
Data analytics helps businesses thrive and leads to sustainable solutions in enterprises. As an entrepreneur enthusiast, I hope to use data analysis in every aspect that requires appropriate decision-making. I intend to use it to make informed decisions and obtain profits to ensure a sustainable and holistic business system.
Atchison, Jared. “8 Ways Analytics Helps Your Business Grow.” Business, 2019, www.business.com/articles/drive-business-growth-with-analytics/. Accessed 3 Oct. 2020.
Baumgartner, Erin. “Big Data, Small Farms and a Tale of Two Tomatoes.” TED, 2019, https://www.ted.com/talks/erin_baumgartner_big_data_small_farms_and_a_tale_of_two_tomatoes.
Mackey, John, and Rajendra Sisodia. Conscious Capitalism: Liberating the Heroic Spirit of Business. Harvard Business Review Press, 2014.
Waller, Matthew A., and Stanley E. Fawcett. “Data Science, Predictive Analytics, and Big Data: A Revolution That Will Transform Supply Chain Design and Management.” Journal of Business Logistics, vol. 34, no. 2, 2013, pp. 77–84, doi:10.1111/jbl.12010.