When it comes to business analytics it is crucial to keep your metrics in clear sight. The metrics that we keep an eye on are specific to the relative departments, or if you are a business owner your metrics might differ from operational sector to sector. We see that in today’s world data is king, and accordingly what we do with that data and how we analyze it could be the difference between a company that goes boom versus bust.
Where data is today?
Businesses today are striving to become more data-driven in hopes to get a clear picture of what is going on in their business, their sector and the overall economy. Over the last 15 or so years, we have seen businesses (especially online businesses) segway into using some form of dimension and metric-based data analysis software. As data compiling got more and more specific and holistic the data load for analysis has grown tremendously. Today we see that using dashboards are coming to a glass ceiling. Not only has it gotten harder to keep track of all the necessary metrics, but it has also gotten even more difficult to derive meaning from the current metrics we have.
When you need to (and can) track so many metrics it is that much more crucial to hypothesise about the relationship between said metrics. This is where the analysis of the data comes into play, however, this is highly prone to human error. Not only are humans limited in their ability to be aware of all metrics, but their analysis of said relationships may also be flawed, due to improper conclusions or lack of data. This is where a missed metric can be costly for your business. We are going to dive deeper into this notion with an example.
Let’s look at an e-commerce business that produces clothing and sells it on their website. Some of the metrics it would be driven by are revenue, conversion rate, and shopping cart abandonment rate. When looking at these generalized metrics it is important to understand the thousands of factors that impact these e-commerce metrics. For example, if on any given day your shopping cart abandonment rate increased dramatically, and if it is due to a metric that you have not been following it could take you a very long time to find the source of the issue. Here you can see how any overlooked metric can be costing your business money.
Where to go from here?
The solution to this is anomaly detection. Millimetric can analyze and scale through data at a rate that cannot be done through manpower. Most importantly, Millimetric will make sure no key metric goes overlooked and accordingly uncover relationships you never knew existed. With this added insight Millimetric is able to find the root cause of issues so that you can not only see the affecting metric, you can go to the source of that metrics issue. Accordingly, you can take the necessary steps to fix the issue.
Anomaly detection is the only logical path to help businesses steer their ship through the sea of data. It is important to have a system that alerts you when you need to be alerted, data needs to be constantly scaled and analyzed for insights. The need to do this poses a problem with execution. The data load is simply too much to be analyzed at such great detail that anomaly detection tools such as Millimetric are a must.