Data is everywhere. For small businesses, this is a good thing. It presents a new resource for making better business decisions (aka data analytics).
No wonder the data analytics industry has taken the world by storm. According to explodingtopics.com, the global big data and analytics market is worth $274 billion. By 2027, it’s expected to generate $103 in revenue.
As a small business owner, you may want to invest in a data analytics tool to help power your business. However, choosing the right tool can be challenging when there are so many options out there.
So here are seven tips for choosing the best data analytics tool for your organization:
Table of Contents
Define business objectives
Before you start comparing data analytics tools, you must define your business goals. How does your company plan to use data and what problems will it solve?
If you can’t answer these questions, there’s no point in investing in a data analytics tool. A data analytics tool needs to support your current and future business objectives.
So take time to identify your core business goals and then break them down into smaller analtyics-related goals. Then look for tools that can help you achieve them.
For example, you may want to optimize your inventory levels and need a tool that can better track inventory going in and out of your warehouse. In that case, you may want to invest in an inventory management app.
Evaluate scalability
Another factor to consider before choosing a data analytics tool is scalability. As your business grows, it may generate and collect larger sets of data. In that case, you’ll want a tool that can handle more.
Cloud-based data analytics tools are a good solution. They allow you to easily increase your service level as your needs change. That way, you don’t need to change platforms, which can be costly and time-consuming.
So be forward-thinking when evaluating what data analtyics tool to adopt.
Consider ease of use
Not all data analtyics tools are easy to use. Some require technical expertise and training. So consider the skill-level of your data team and who exactly will be using the tool.
Will there be a high learning curve or is the platform’s interface user-friendly enough that it can be operated by non-technical users? These are important questions to ask.
Look for visualization features
Consider the data analytics tools visualization features. Can it generate dashboards that make metrics easy to understand for non-technical stakeholders?
It should. After all, a big part of data analytics is communicating insights. Without good visualization features, a data tool will make it hard for you to share valuable information with decision-makers.
Understand pricing details
It’s important to understand the pricing details of any data analytics software and ensure the cost fits within your budget. Different tools have different pricing structures.
For example, you might be charged on a subscription basis (aka Software-as-a-Service). Or may need to pay for licenses that have user limits.
Also, pay attention to any hidden fees for added features and how much it will cost you to upgrade your service level later on if needed.
Assess integration capabilities
Data analytics tools can be stand-alone solutions or apps that can integrate with your existing systems and software.
Aim for an integrated solution. It can make adoption much smoother and let you avoid a frustrating transition. In contrast, a standalone solution may have a higher learning curve and require more time to get used to.
Prioritize data security and compliance
Lastly, be sure to choose a data analytics tool with robust security features. We live in an age when cyber threats are on the rise. To protect yourself from data loss, theft, and corruption, you need a tool that takes cybersecurity seriously.
In addition, the data analytics tool you choose should help you maintain compliance with various data regulations, such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA).
Final thoughts
Ultimately, the right data analytics tool for your company will depend on your needs and goals. However, you can significnatly narrow down your options by following the above tips.
Then do your research by comparing prices and user reviews. You may also want to look at what data analytics tools similar companies are using and how they are using them. All of this can help you make a more informed puchase decision.
