We already see the impact of data analytics in our daily lives, like self-driving cars and apps that give varied routes to avoid traffic jams. In short, there are already some big players in that space, such as Google and Tesla.
Bearing that in mind, is there any point venturing into data analytics, considering such heavy hitters are playing the same field and are way ahead of the curve? We make a case for why your next business should be a data analytics startup, even if it means taking out one of the best personal loans in the market.
Why is data analysis critical in 2021?
The US Bureau of Labor Statistics expects operations research analyst jobs to grow by 25% through 2030, the fastest of all occupations. QuantHub compiled data from three job sites and six other websites and found 250,000 data analysts/scientists shortage in 2020. A McKinsey Institute predicts that the US faces a 190,000 data scientist’ and 1.5 million data analysts and managers shortage.
According to LinkedIn, cloud computing, analytical reasoning, AI, and business analysis all ranked in the first six of its Top 10 hard skills in 2020, something data analysts and scientists need in their arsenal. This shows how data analytics is crucial in 2021.
Why data analytics is essential for businesses
Firstly, companies increasingly rely on data collection, management, and analysis to inform decision-making. Some decisions are often shots in the dark, so management can minimize this risk by utilizing predictive and prescriptive analytics to forecast what would happen and handle any eventualities.
By analyzing customer data, they can also anticipate and improve services. In short, data analytics helps in optimizing customers’ experiences.
Finally, data analytics can inform marketing campaigns. Data analysis will pinpoint all relevant data, such as purchases and website activity, to help the business create focussed or targeted marketing material.
Business and data analytics insights: how the future looks like
They say the only constant thing is change, and nowhere is that more true than in the data analytics business. What we currently have is data analytics supporting the decision-making process, but it promises to take over. In the future, data analysis will help you identify wasteful business processes through the power of AI.
You will achieve this through improved data analytics processes that describe what and why something happened, what you can learn from the events, and predict what might happen by analyzing data from multiple sources.
Data analytics used for industries
As mentioned above, one of the major companies that use big data and analytics is Tesla. As of April 2020, the company had collected 3 billion miles worth of autopilot data. Even when not on autopilot, their vehicles collect data such as traffic speed and location of hazards, which it uses to train its autopilot system.
Google, on the other hand, developed the People Analytics Department that assists in HR decisions. HR uses employee surveys and performance reviews to gauge the effectiveness of manager’s performance on their team.
Amazon uses data analytics mainly to improve sales. While shopping at Amazon, you’ve probably been hit by product recommendations. The company uses data analytics to suggest similar products or products that complement what you’ve bought.
Advantages of starting a data analytics startup in 2021
- There is a shortage of professionals, so you have plenty of work.
- A direct result of the shortage is that data analysts get paid heavily, with the average base pay at $100,560, according to the Bureau of Labor Statistics.
- Even if you don’t have the money to start the business, it’s highly marketable; hence, you can access the best personal loans.
- Now is the right time to invest because industries are investing heavily in training data analysts. It pays to start now while there’s a shortage.
Data analytics has emerged in the past decade as one of the most sought-after and profitable business ventures for the future. Research shows a current shortage of up to 1.5 million data managers and analysts. 2021 is the sweet spot to start your data analyst job because the current shortage means plenty of work. Data analysis is also going to be the mainstay of decision-making in many industries for years to come.
Consider getting the best personal loans to start a data analytics business as the market is flooded with opportunities. Follow the link in the introduction section to learn more about personal loans.
About the Author: Andrew Murambi has been a personal finance writer for as long as he’s been writing professionally. He’s passionate about the subject, that’s why he joined forces with Camino Financial to give you practical tips on managing your finances for now and the future. While Andy is predominantly a personal finance writer, he’s written about fintech, project finance, and corporate finance