Data Analysis from External Service Providers
Why should retailers explore transferring their advanced data analytics requirements to an external service provider?
There is a vast wealth of knowledge that is floating around the World Wide Web and collecting in the digital storage vaults of retail companies across the world. Making sense of all this data can be daunting, time consuming, and impractical for several retailers. Although this task of extracting actionable insights from voluminous data is difficult, it is an important step towards assisting organizations makes effective business decisions. Without the proper information or lack of good data driven insights a company may fail to capture or lead in this highly competitive marketplace.
Most advanced data analytics solutions are provided by talented data scientists, who build statistical models to solve complex business problems. These data scientists understand the science, methodology, and technology behind obtaining the right solution. Typically, the data analyzed can consists of thousands of variables and can cover a range of activities including:
• Multichannel sales data
• Demographics and supply side information
• Competitors and industrial trends
• Web scraping / screen scraping for social media information
As the retailers data (volume) grows they try to hire a team of data scientists to fulfill their data mining needs. However, organizations often find it hard to
1. Qualify the right candidates who will be able to perform these roles. As most data scientists lack the business domain experience
2. It is expensive to bring a team of data scientists on board and retain them once the initial models have been completed. Since much of the ongoing work is model maintenance, companies often find it difficult keep the talent engaged
3. Ramp up time may be anywhere from several months to a year to get the team, technology and the tools in place. This requires huge up front capital investment
As a result; some companies have started looking to outsource this function. There are several benefits to outsourcing –
Assurance of Qualified Data Mining Staff and Analysts:
The right consulting/ contracting organizations will have the right blend of team with strong data science and business exposure. Because these consulting companies are experts in their field they can retain better quality staff and thus provide a much focused expertise
Analytics companies which are established in the field will already have the tools to implement the program. A good provider will also have the awareness of latest technologies, which can be a huge asset in this ever advancing field of technological innovations. Therefore companies are spared the expense of building the in house expertise and/or experimenting with various tools & hardware to undertake the task.
Reduced Turnaround time:
A team of experienced professional data experts are likely to be more efficient in their turnaround times Their experience can also be valuable in the presentation of the material as they will have experience of meeting a variety of client needs to tight deadlines.
Outsourcing is often an effective way to cut costs when a job is not a regular day to day task. Outsourcing companies can spread the costs of personnel, tools and other costs over many of their clients.
Advanced analytics is needed to plan and increase the ROI of businesses. The outsourcing or engaging external service provider for this function will help retailers take a giant leap towards taking their business to the next level. The consultants at Virtue Analytics are technically trained in operations research, advanced statistics, decision sciences, mathematics, and business management. They are able to help organizations fulfill their Data Mining requirements. At Virtue Analytics, we hire some of the best data scientists in the field of consulting.