In simple words, information database or IDB is a collection of records or data that is stored in a computer or information system and is used to create and sustain information. Every business does that – variably or invariably.
Multidimensional analysis, on the other hand, is a process to analyze data that groups data into two categories: data dimensions and measurements. It takes into account different relationships – each of which represent a separate dimension.
For instance, a retail chain owner wants to understand the relationships among sales by the location of its stores in different regions, quarters, demographic distribution such as income, gender, and by product.
With the help of multidimensional analysis, he or she can make sense of such complicated relationships and actually do something substantial with them.
The multi-dimensional analysis of information database is important for every business – B2B and B2C – especially during the decision-making process. It is no news that the business environment is supremely dynamic and evolves constantly.
What might hold true today may not make any sense at all tomorrow. Since the trends are changing so fast and the competition is on the rise, it is always a good idea to analyse every little data set that your business creates or attains.
Marketers, especially, can benefit much from this.
1. Data management
When you have data in abundance, it is possible to lose track of it all unless it is properly collated and categorized. This is necessary to be able to make use of the data in hand whenever the need or opportunity arises.
A faster decision making process is only possible if you know where to look for the data. One way to manage this is by putting the data under different categories such as office sites, number of warehouses, distributors, end-buyers.
No matter which management approach you take, data should be available to the company’s marketers in their related activities – whenever they want.
2. Reduced overall costs
The multi-dimensional analysis of the data can provide forecasts for multiple target periods, conducted by multiple forecasters. Since the predictive data has been assembled, marketers can easily base their entire strategy on this.
There are three advantages of doing so:
- Risk is reduced.
- More opportunities can be tapped, as and when they arise.
- Time is saved.
All this leads to one thing and that is “reduced overall costs”. From planning and executing the marketing plan to cost related to analyzing the data – the organization is able to curb many unnecessary expenses.
3. Better decision making
Organizations always strive to take effective decisions with whatever data they have in time. But with multidimensional data analysis, this only becomes easier. The point is that data is everywhere and this includes the feedback that customers leave on social media.
United Healthcare, a health insurance giant, uses “natural language processing” tools from SAS to better understand customer satisfaction and when to improve it. It converts records of customer calls to its call center into text and searches for indications that the customer is indeed dissatisfied.
The company has already found that the analysis of texts helps them work on areas where their customers are often left unhappy about their services. In other words, they are able to make better decisions to ensure more positive customer experiences.
4. Plan new products or services
You have perfectly collated, updated all the data in hand. You have even calculated the opportunities that can arise later. In the process, you have managed to save time and money – and strengthened the core foundation of the business.
Surely, this can give you the confidence to understand what the end-buyers will want next from your organization. If you don’t want to go for a completely new product or service, upgrade it. Your customers – whoever they are – will always want something new.
The multidimensional analysis of data can give you a clear picture of what you should do next.
5. Beat the competition
The competitive edge is important for any business to survive and thrive. Thankfully, there are many software and tools in the market that have been created to make multidimensional analysis processes a lot easier and faster.
Wigzo, for instance, is able to break large chunks of data into systematic pieces of information. It can track and profile users across platforms such as web, apps and mobile web to enable businesses to deliver the right experiences.
It generates predictive content recommendations and helps send the right message at the right time and on the right device. It also predicts which user base is dormant and which active users will stick to your product in the coming months.
In a nutshell…
A multi-dimensional data analysis process makes it easier for companies to see the big picture even in the most complex situations. It helps them spot their strengths and weakness and take actions accordingly.
In this digital time and age, there is no dearth of data but what lacks is its appropriate use for the growth of the business. If you can’t ensure that, you lose out on massive opportunities that are ultimately detrimental to the future of your business.