Businesses need to use actionable insights to drive decisions, but what is an actionable insight, and how exactly is data used to create one? For example, business leaders could track a customer’s behavior on a platform that can indicate their sentiment regarding a product.
If the information a company receives enables stakeholders to make decisions, modify current processes or overhaul them, then that’s actionable insight.
These days, analytics platforms rely on AI and machine learning (ML) algorithms to drive actionable insights.
“Analytics must cope with both structured and unstructured data to achieve optimal results,” Sofer said.
One of the main challenges of generating actionable insights is the need to deal with both structured and unstructured data.
Unstructured data, by some estimates, comprise 80% of all available data, and using a powerful business intelligence (BI) platform can simplify turning this data into actionable insights.
It’s important to formulate business questions before turning to an analytics platform to determine which insights are actionable and which ones are not.
A Six Sigma action plan can help integrate new ideas and findings into workflows, define the problem and measure the effectiveness of the current process.
That way, an organization can see greater adoption of data-driven insights into everyday business processes.
Creating actionable insights is a process like any other, and it’s perhaps the most important factor for a business’s overall success.