Advanced analytics: what is it and what is the impact on companies in Latin America?

Advanced analytics (AA) is, in short, a broad and advanced set of resources (which traditional BI does not offer), which involves data science, data analysis, artificial intelligence (AI) and human, to make companies :

• predict trends and results;
• manage risks in a much improved way;
• have an in-depth view of the entire company;
• get decisions right;
• lead their market;
• and grow truly exponentially.

It sounds like utopia, but that's what has happened to organizations of all sizes around the world, according to data, of course!

For you to understand the impact of AA in practice, we will detail what advanced analytics is and what has changed in the lives of companies that have already achieved advantages in their respective areas with the use of this complex that includes artificial intelligence ( AI ) and human.

And if you have any questions, send us a message, because Indicium is here to help your company grow! 😃

What is advanced analytics (AA)?

Advanced analytics is a methodology that involves data science , data analysis , artificial intelligence ( AI ) and human intelligence to make companies more productive .

To implement advanced analytics and artificial intelligence, and benefit from instant and integrated data visualization , companies need to be fully capable .

Regarding this, we will raise two points below.

Advanced analytics in Latin American companies

One point is that companies that have already implemented AA are growing and leading their markets worldwide. Recent studies by the McKinsey Global Institute show incredible annual growth rates , even during the Covid-19 pandemic .

But, interestingly, this growth has occurred to a lesser extent in companies here in Latin America.

Now, the other point is that, even though it is lagging behind and at a recognized disadvantage in relation to companies that are true global leaders in advanced analytics , the forecasts are excellent for Latin America in relation to the achievement of analytical maturity by companies in this region.

Estimates indicate that the value to be unlocked from the use of AI/AA in Latin America is around $0.6 to 1 trillion dollars annually in productivity gains. (McKinsey, 2020).

Think about the current economic crisis caused by the Covid-19 pandemic . Even with this critical scenario, we can say that Latin American companies have a great opportunity to increase their productivity with innovation in their segments.

It's time to reinvent yourself, create value, accelerate, improve productivity rates and maintain growth rates. All of this can and should be done with the implementation of advanced analytics, artificial intelligence and a lot of training . Because, after all, there is no magic.

Even before the humanitarian and economic crisis caused by Covid-19 hit Latin America, the region suffered from low economic growth and the unequal distribution of gains . (McKinsey, 2020)

And this growth, although low, results from what?

From several factors , but mainly from an increase in labor, not productivity .

We hope you agree that, if it is a fact that working with advanced data analysis generates gains for companies (including those in Latin America!), then it is urgently necessary to apply advanced analytics and artificial intelligence to boost the productivity of these companies.

This will certainly accelerate the recovery of the general economy in the region and, consequently, in the world.

How to transform a “business” into a “productive company” with advanced analytics?

To transform your company into a highly productive business, advanced analytics is the way to go . But it's not enough to simply invest in technologies, like an expensive data lake or modern cloud analytics infrastructure .

More than 60% of models developed with the intention of operationalization were never actually operationalized. —Gartner Inc.

To achieve concrete results and impact your business, you need to know how to use advanced data analysis systematically . And doing this involves integrating :

• people,
• Law Suit,
• and technological tools.

In practical terms, let's say you decide now: I'm going to invest in this and apply advanced analytics in my company. But then the question arises: where do I start?

5 steps to transform your company with advanced analytics

If advanced analytics is the path, we will take it step by step.

But at the start, we warn you: this is a path with no return and no end. And you will understand why.

With all of this “ready”, you will have a new operational model up and running for creating your own analytical models and capturing value from your use cases*.

*Use cases = how do people who use your product or service interact with your company - your system - to solve their problems? Then, combining your analytical models created with the historical data extracted and the use of artificial intelligence, you arrive finally to advanced analytics. 🎯

Done! But it doesn't end here... It's time for advanced analytics to do the work for your company to find the answers to some fundamental questions, something that traditional BI alone does not offer.

And to carry out this advanced analysis work using advanced analytics and artificial intelligence , you will have resources such as:

• big data analysis
• network and cluster analysis
• sentiment analysis
• statistical/quantitative analysis
• text analysis
• pattern matching
• machine learning
• data mining
• predictive modeling
• complex event processing
• data visualization
• multivariate test

It's like we said: this path, which here at Indicium we call the Data Driven Journey , has no return and no end . Because, when your company is making use of advanced analytics , this journey will not be over.

Let's say it will be the beginning of advanced analytical maturity . Think of it this way: when a person who is an athlete reaches their peak, they don't stop. She continues training to continue evolving. And that!

Advanced analytics: achieve analytical maturity with Jornada Data Driven

Companies in Latin America , regardless of size and segment, can draw up a roadmap and, by truly following it, improve productivity and generate growth in this “new normal”, changing this scenario of disadvantages.

These organizations can indeed achieve competitive advantages that are sustainable so that they become leading companies in their segments.

And it was with this growth in mind that Indicium created the Data Driven Journey. It is our analytical maturity model that has already helped and continues to help companies assess their position in data transformation to maximize business results.

Discover the Data Driven Journey

The Data Driven Journey is divided into five stages and it is essential that you are clear that implementing a data culture does not happen overnight.

It is important to clarify that companies from Latin America , but not only, end up facing the same difficulties in this process of changing culture . We're mainly talking about something that should be simple, but isn't: people .

There is a lot of resistance from people to changing decision-making processes. There are those who still put their foot down to defend decisions made based on experience. Not to mention the superhuman difficulty in aligning agendas, in attracting and retaining such fundamental new professional talents, in overcoming and changing other formal processes, etc.

Now, if advanced analytics had a motto, it might be something like this bumper phrase:

‍

So much so that there are companies in our region that have already overcome this Covid-19 pandemic , and are using AA/AI to analyze the risk of coronavirus infection locally and make decisions aimed at protecting customers and staff.

Real cases: the current scenario of advanced analytics in Latin America

Let's get straight to real examples!

As data from the McKinsey Global Institute shows, we have success stories in Latin America, precisely in this coronavirus crisis, which serve as an incentive for all local companies. Including yours.

See the list of cases that the institute has on its website

• There are banks that, with advanced analytics , identified customers in need of financial assistance and began to offer fully customized solutions.
• There are also merchants using AA/AI to, in light of identified trends, personalize offers to customers and digital channels, quickly increasing sales and reducing churn (cancellations). There are B2B companies using AA/AI and implementing improvements in their cash flows, savings on inventory purchases, optimization in various logistics processes, etc., generating rapid growth impact.

Advanced analytics: what will be the impact on your company?

Much more than an instant and integrated view of business, advanced analytics is for companies:

• predict trends and results;
• manage risks in a much improved way;
• have an in-depth view of the entire company;
• get decisions right;
• lead their market;
• and grow truly exponentially.

You can also predict trends and results . This will ensure better decisions for your company to experience truly exponential growth .

Do you want to discover the impact that advanced analytics and artificial intelligence can have on your business?

We can help you on this journey. Get in touch here !