The Importance of Statistics and Analytics for Business Essay Example
We, as a society, depend on effective resources to make crucial decisions. In today’s business world, several industries are using statistical data and analytics to make better business decisions for long-term profitability and competitive advantage. Industries use statistical data and analytics to “organize, analyze, and transform data and to present the information” in order to “make decisions” that positively “affect our daily lives” (Lind, Marchal, & Wathen, 2013). Although several industries impact the lives of several citizens, the industries of oil & gas and restaurant & drinking impact the most with their decision making.
Statistics and analytics play a crucial role, in the oil & gas industry, in regard to their decision-making process. It impacts is in-real time and the highly cost-effective method. Data volume “grows with rapid speed and handling a large amount of data efficiently,” which becomes a “very import” aspect of “generating extreme volumes of data at a very high rate on a daily basis” (Zaidi, 2017). From this data, it can help businesses and companies within the oil & gas industry by cutting “costs” and capturing “real data in real time,” which helps improve “production by 6% to 8%” (Zaidi, 2017). Its data “goes beyond efficiency” by analyzing “large volumes of data in real time” (Zaidi, 2017). It also impacts the reduction of risk and better decision making. Unstructured data “is stored in different databases or any storage facility, which requires a lot of time and effort” (Zaidi, 2017). Unstructured data can help by “reducing risk and help in learning more” about the “subsystems,” which increases the “accuracy in decision-making” (Zaidi, 2017). Its data also ensures high accuracy in drilling methods, oil exploration, while ensuring efficient performance of machines. Data analytics, including “software, data visualization, and pervasive computing devices,” can “optimize the subsurface mapping of the best drilling locations; indicate how and where to steer the drill bit; determine, section by section, the best way to stimulate the shale; and ensure precise truck and rail options” (Zaidi, 2017). Its data also is used to “ensure that machines are working properly and are not damaged due to breakdowns or failures” (Zaidi, 2017). The data used by the oil & gas industry, in regard to performance of machines, is “compared to the aggregated data” to ensure all “parts are replaced in an efficient manner and downtime is minimized, furthering additional expenses” (Zaidi, 2017). The oil & gas industry uses analytics and data to “help managers become more proficient in managing different types of data,” including “seismic, drilling logs,” and “operational parameters” to “optimize performance” (Zaidi, 2017).
Statistics and analytics also play an important role in restaurant and drinking industry, in terms of decision making. Data “science and big data” are “changing the world around us” (Sykes, 2019). Data is greatly impacting the restaurant and drinking industry components, including “retail, customer service, and construction,” in addition to “manufacturing and development” (Sykes, 2019). Its data helps “design their inventory, improve quality control,” and “meet changing demands” (Sykes, 2019). Statistics and analytics tolls have also led to the “creation of new offerings by identifying ingredients, spices, and garnishments based on customer satisfaction levels” (Sykes, 2019). One main example is delivering orders faster, better, and accurate. Data analytics “factor heavily into proper and accurate delivery, especially when it concerns hot foods that must remain fresh during” transportation (Sykes, 2019). The restaurant & drinking industry can use this data to “track elements such as traffic, weather, local climates, routes…construction” and “detours” for “delivery drivers,” as well as food preparation (Sykes, 2019). Its data can “improve existing processes by analyzing patterns and either calculating or predicting crucial food delivery and preparation strategies” (Sykes, 2019). Another prime example is better supply chain transparency. Data and analytics allow businesses, within the restaurant and drinking industry, to “be much more transparent about their entire operation,” leading to “greater customer loyalty” (Sykes, 2019). It also allows businesses “many solutions regarding efficiency and performance,” as well as “improved security and health for all” (preventing risk of food diseases and illnesses) (Sykes, 2019). Another example includes mobile and social media experiences. Its data, through polls, posts, and branding strategy (apps, programs, and communication systems), provides businesses to understand “a deeper understanding of their brand, restaurants, and foods” (Sykes, 2019). Mobile technological platforms include self-serve opportunities, including “self-serve taps and bars,” allowing “customers to pour their own beer” (Sykes, 2019). Data plays a crucial role in this component by “providing several more choices for customers, allowing them to decide how, when and where they want to get their meals and orders;” as a result, it boosts “revenue and performance” (Sykes, 2019). Interpreting data and analytics can improve “better food,” services and “excellent experiences” to customers in the restaurant & drinking industry.
Both the oil & gas and restaurant & drinking industries both are prime examples of efficient operations, with the use of analytics and data, to make efficient and effective decisions. The oil & gas industry uses data and analytics to make better decisions on cutting costs of drilling oil, while also better protecting the environment. The restaurant & drinking industry uses data and analytics to make improved and effective decisions to increase quicker, efficient, and effective services with the use of advanced technology. Data and analytics are crucial for businesses to sustain a long-term competitive advantage and survival within one’s market.