Companies that leverage the power of embedded analytics have the ability to analyze data in real time and transform that data into actionable insights, leading to better outcomes and a more competitive position in the marketplace.
One key challenge facing businesses in every industry – from software developers and social service agencies to pharmacies and supply chain providers — is the ability to have real-time visibility into their data to make better decisions. Distinct from traditional business intelligence (BI), embedded analytics is a powerful tool that integrates data analysis and insights directly into existing software applications and workflows. By embedding analytics into business applications, companies can empower users to access, analyze, and act on data without leaving their usual software environment.
Embedded analytics’ seamless integration into existing business applications provides users with real-time insights, visualizations, and interactive reports, taking data points and transforming them into resources that can be utilized by users to make more informed business decisions. One of the most significant advantages of embedded analytics is its ability to identify trends, which is crucial for strategic decision-making, improving operational efficiency, and gaining a competitive edge. Embedded analytics enables users to quickly identify trends, recognize patterns, reduce costs, increase sales, and more.
For example, Datacom’s Zeus portal incorporates embedded analytics to bring multiple data points, such as configuration management database items, security, and other technical information, into a single pane of glass. Datacom’s engineers and even non-technical users can filter through data and quickly create reports, eliminating coding changes every time they create a new dashboard.
The Importance of Trend Identification
Identifying trends is especially important for organizations that want to highlight emerging opportunities, reveal areas of improvement, and determine potential risks. It also enables organizations – large and small – to anticipate changes, adopt new strategies, and make informed decisions.
For example, users of the Scriptly pharmacy management solution use embedded analytics to access up-to-the-minute data and spot patient, prescriber, and prescription trends. Another benefit of Scriptly’s embedded analytics is that it allows pharmacists to identify patients who are not taking their medications based on when they order refills.
Other ways organizations are identifying trends with embedded analytics include:
- Tracking customer purchasing trends, enabling them to adjust inventory levels, personalize marketing efforts, and improve customer satisfaction.
- Identifying production trends that affect efficiency, streamline processes, and reduce costs.
- Simultaneously detect and mitigate risks, safeguarding operations and enhancing client trust.
By recognizing patterns in customer behavior, market dynamics, or operational performance, businesses can take proactive measures to be more efficient and productive.
See also: Embedded Analytics Delivers Oomph to the Bottom Line
Embedded analytics methodology
Here are the steps to identify trends using embedded analytics:
1) Define Your Objectives and Key Metrics
The first step in the trend identification process is to define your objectives and the key metrics needed to reach your goals. Gaining an understanding of what you want to achieve will help guide the data analysis process. Common objectives include improving sales, enhancing customer experience, optimizing operations, or reducing costs. If your goal is to increase sales, your desired metrics might include sales growth rate, average transaction value, customer acquisition cost, and customer lifetime value. By clearly defining these, you can ensure that your embedded analytics solution is tailored to provide relevant insights.
2) Integrate Data Sources
Embedded analytics relies on data from various sources to provide you with relevant insights. Integrating multiple data sources, such as databases, data catalogs, third-party APIs, and spreadsheets, is crucial for analyzing your business. Your embedded analytics solution should be able to connect to and seamlessly pull data from these diverse sources. Data integration allows you to combine historical data with real-time information, enabling a deeper trend analysis. For instance, integrating sales data with customer demographic information can reveal trends in customer preferences and buying patterns.
3) Utilize Advanced Analytical Techniques
To effectively identify trends, embedded analytics solutions should leverage advanced analytical techniques, such as:
- Descriptive Analytics: Uses current and historical data to identify trends and relationships.
- Predictive Analytics: Uses statistical models and machine learning algorithms to predict future outcomes based on historical data.
- Prescriptive Analytics: Takes insights from descriptive and predictive analytics to identify the best course of action.
4) Create Interactive Dashboards and Visualizations
Data visualizations are a powerful way to identify and communicate important trends. With embedded analytics tools, you can create interactive dashboards that display key metrics and trends in an understandable format. These dashboards allow users to drill down into specific data points, filter by criteria, and explore the data from various angles. For example, a line chart can show trends over time, while a heat map might reveal geographic trends. Interactive dashboards enable users to assess data in real time, making it easier to spot trends and correlations.
5) Set Up Alerts and Notifications
Embedded analytics can be configured to continuously monitor metrics and send alerts or notifications when certain thresholds are met. For instance, if sales drop below a certain level or if there is an unusual spike in website traffic, the system can immediately notify stakeholders. This real-time monitoring is particularly useful for identifying trends that require immediate action, such as supply chain disruptions or sudden changes in customer demand.
6) Encourage Self-Service Analytics
One of the main benefits of embedded analytics is that it democratizes data access across the organization. By incorporating self-service analytics, non-technical users can easily create custom dashboards and interactive data visualizations to identify trends and make data-driven decisions without relying on data scientists or IT teams. Self-service analytics fosters a data-driven culture within the organization. For example, a marketing manager can independently explore campaign performance data to identify trends in customer engagement and adjust strategies accordingly.
7) Continuously Monitor and Refine
Trend identification requires continuous monitoring and refinement. Embedded analytics solutions can be used to track key metrics over time, allowing you to adjust your strategies as trends evolve. If you regularly review your analytics dashboards and reports, you will stay informed about the latest developments in your business and be able to continuously improve your ability to identify trends.
A final word on embedded analytics
Embedded analytics can be a powerful tool, allowing organizations to identify important trends by integrating data analysis directly into their business applications. By defining clear objectives, integrating diverse data sources, and utilizing advanced analytical techniques, businesses can use embedded analytics to effectively detect trends and make data-driven decisions. Companies that leverage the power of embedded analytics have the ability to analyze data in real time and transform that data into actionable insights, leading to better outcomes and a more competitive position in the marketplace.
