What Is a Data Analytics Platform? Our Comprehensive Guide

1. Data Integration & Collection

Data analytics platforms allow for data collection from various sources into a single space. For example, Qlik's Talend Data Integration and Quality solution enables data collection from spreadsheets, social media, local files, and web files into a central hub.

2. Data Processing & Storage

Platforms offer tools for effective data cleaning, such as removing duplicates and ensuring consistency.

As a real-world example, Qlik's Change Data Capture feature facilitates processing large volumes of real-time, analytics-ready data for delivery into streaming platforms, cloud platforms, data warehouses, and data lakes.

3. Data Governance

A good platform should offer strong data governance features. This includes data lineage tracking, audit trails, and the ability to set and enforce data policies across your organization. Effective governance ensures data quality, consistency, and reliable analytics.

4. Advanced Analytics & Visualization

A core feature of these platforms is data exploration to answer key questions. Advanced analytics uncover hidden insights and correlations. Visualization tools present findings through charts, heat maps, and other visual aids for easy comprehension.

5. Reporting & Dashboard Capabilities

These platforms include tools to create dashboards that capture essential information and visualizations. This allows for efficient report creation and presentation to decision-makers.

For example, Intuit simplified its analytics with a company-wide portal, which led to quicker decisions and better outcomes. Similarly, Qlik's reporting tools enable the efficient creation and distribution of insights across an organization.

Time & Cost Savings

Data analytics platforms deliver substantial time and cost benefits to businesses. These solutions eliminate many manual tasks by automating data collection, processing, and reporting. The time saved can then be redirected to strategic initiatives that drive business growth.

Another time-saver? Faster, more informed decision-making through real-time data access. The consolidation of data into a single platform eliminates redundant efforts and data silos. The result is lower IT expenses and improved productivity across all departments.

Urban Outfitters provides a compelling example of these benefits.

The company transitioned to a Snowflake cloud powered by Qlik Data Integration. This enabled the streaming of 50 GB of data daily from various on-premises sources. Qlik Data Analytics became the company's in-store reporting and data analysis standard.

The results? Unprecedented access to critical data, better decision-making, and a massive decrease in the amount of time required to generate reports (from hours to minutes).

Customer Behavior Analysis

Data analytics platforms empower businesses to gain deeper insights into customer behavior. By consolidating data from various touchpoints — website interactions, purchase history, and social media engagement — companies can better understand customer needs and preferences.

This comprehensive view enables more targeted marketing, personalized experiences, and optimized product offerings. The result is higher customer satisfaction and loyalty. Predictive analytics can also forecast future behaviors, allowing businesses to anticipate trends and stay ahead of competitors.

Domino's Pizza exemplifies the power of customer behavior analysis.

The company integrated data from 85,000 sources across 85+ markets to gain a unified view of its customers and operations. It implemented Talend Data Fabric and created a robust data tracker to integrate with its management framework and real-time data streaming system.

This modern data platform provides Domino's with a single source of truth, driving improvements in logistics, financial forecasting, and personalized customer experiences across multiple touchpoints. The result is enhanced business performance and more satisfied customers.

Data-Driven Decision-Making

Data analytics platforms empower businesses to make decisions based on facts rather than assumptions. These tools provide real-time access to accurate, comprehensive data across an organization. This access leads to more informed and precise strategic choices.

With advanced analytics, companies can identify trends, uncover hidden insights, and predict future outcomes. This capability allows for proactive adjustments to strategies and operations. The result is enhanced efficiency, increased innovation, and improved competitiveness in rapidly changing markets.

Data-driven decision-making extends beyond executive levels. It enables employees at all levels to contribute more effectively to the company's goals. By fostering a culture of data literacy, organizations can improve performance, increase profitability, and ensure long-term success.

1. Align with Your Data Strategy

The right data analytics platform for you is the one that best suits your strategy. While there are a handful of tools, some may not meet your unique data analysis needs.

When choosing a data analytics platform, it’s essential that the solution aligns with your broader data strategy. This ensures that the platform supports your long-term business objectives and helps you maximize the value of your data.

Here are a few key factors that play a role in alignment:

i. Business Objectives

Your data strategy is rooted in business goals, whether improving customer insights, streamlining operations, or driving innovation. The platform should provide the tools and analytics needed to meet these objectives, including features like:

• Real-time analytics

• Predictive modeling

• Customizable reporting

For example, if your goal is to optimize operations, tools that support automated reporting and process analysis would be vital. Conversely, businesses prioritizing customer insights should focus on platforms with strong customer data integration and segmentation features.

ii. Data Centralization and Accessibility

Want all your data in one place?

Choose a platform that plays well with others. It should easily integrate data from various sources. The best platforms offer APIs, cloud storage integrations, and cross-functional accessibility. Take Qlik, for example.

It supports both on-premises and cloud-based integrations, giving you flexibility in your data setup.

This means you can:

• Keep sensitive data on-site for security reasons

• Leverage cloud scalability for large datasets

• Gradually transition to the cloud at your own pace

• Mix and match to create a hybrid solution that fits your needs

This flexibility ensures that you're not locked into a single approach. Your data platform can adapt as your business grows and evolves. This empowers decision-makers across your org with a unified view of data.

iii. Data Governance and Compliance

If data governance and compliance are top priorities, look for specific features. Role-based access controls, data lineage tracking, and compliance monitoring are must-haves. Robust auditing and reporting features ensure transparency and accountability.

This is especially crucial in heavily regulated industries like healthcare, finance, and retail.

iv. Collaboration and Self-Service Analytics

If your strategy focuses on democratizing data access across the organization, the platform should enable both technical and non-technical users to collaborate and explore data easily.

Look for tools that allow drag-and-drop dashboards, natural language query capabilities, and intuitive interfaces. Self-service analytics can significantly boost productivity by reducing the need for IT intervention, enabling faster decision-making at every level of the business.

2. Evaluate Technical Capabilities

When selecting a data analytics platform, evaluating the platform’s technical capabilities is crucial. Here are key technical aspects to assess:

• Data Integration: The platform should support a wide range of data sources and formats. This includes the ability to integrate structured and unstructured data, as well as real-time data streams from various internal and external sources.

• Performance: Consider the platform’s capacity for your volume of data. A high-performing platform should handle large datasets without performance lags, ensuring quick processing times and enabling efficient analytics for decision-making.

• Advanced Analytics Features: Assess the platform's support for advanced analytics, such as predictive modeling, machine learning, and AI capabilities. These features are key to gaining deeper insights and enabling data-driven strategies.

• Data Security: Technical capabilities must also include robust security measures and compliance with data regulations. Look for features like encryption, access control, and audit trails to ensure the platform safeguards your sensitive data.

• Ease of Integration with Existing Systems: A platform should be easy to integrate with your existing tech stack, including databases, CRMs, and business intelligence tools. The smoother the integration, the faster your teams can start leveraging the analytics capabilities.

• Customizability and Flexibility: Choose a platform that offers flexibility in customizing dashboards, reports, and data visualization tools. This ensures that the platform can be tailored to meet the unique needs of your business.

3. Prioritize Scalability and User Experience

When choosing a data analytics platform, two critical factors often overlooked are scalability and user experience. Both are crucial for long-term success. Let's explore why.

Scalability

A truly effective platform grows alongside your company. Scalability matters because it future-proofs your investment. Your data needs will likely expand over time, so it’s important to select a platform that can handle increased volume and complexity.

Scalable solutions are cost-efficient, too. They help you avoid costly system overhauls as your business grows. Look for platforms that allow easy addition of new data sources, users, and analytical capabilities as needed.

Consider your projected growth over the next 3-5 years. Will the platform you're eyeing be able to keep up? This foresight can save you time, money, and headaches.

User Experience

Speaking of headaches… a platform is only valuable if your team actually wants to use it.

An intuitive interface is key. The platform should be easy to navigate and use, even for non-technical users. For example, at Qlik, we cater to both power users and those new to data analysis with both traditional querying and AI-powered natural language search options.

Consider the learning curve, too. A steep one can delay implementation and ROI. Training requirements vary between platforms, so factor this into your decision-making process.

4. Analyze Total Cost of Ownership and ROI

When investing in a data analytics platform, looking beyond the sticker price is crucial. A comprehensive analysis of both total cost of ownership (TCO) and return on investment (ROI) will guide you toward a sound decision.

TCO encompasses all costs associated with the platform over its lifetime, while ROI quantifies the benefits.

Here's a framework to analyze both:

1. List all costs. These can fall into a number of categories, including:

   • Initial: Licensing, hardware, implementation, data migration, and initial training.

   • Operational: Subscription fees, cloud storage, maintenance, ongoing training, and specialized personnel.

   • Scaling: Expenses for increased usage, storage, or additional features.

   • Hidden: Integration with existing systems, compliance measures, and extended support.

2. Identify the benefits — including both:

   • Tangible: Increased revenue, cost savings from efficiencies, reduced time-to-insight.

   • Intangible: Improved decision-making, enhanced customer satisfaction, increased innovation.

3. Estimate the time frame. Consider both short-term gains and long-term strategic advantages. A 3-5 year period often provides a balanced view.

4. Calculate using the following formula:

   • ROI = (Total Benefits - Total Costs) / Total Costs x 100%

5. Evaluate the results. Compare different platforms based on their TCO and projected ROI. Remember, the cheapest option isn't always the most cost-effective long-term.

Every organization is unique, so consider your specific use cases, data volume, and strategic goals. Don't hesitate to ask vendors for industry-specific case studies or ROI calculators, but always cross-verify with your own analysis.

By thoroughly analyzing both TCO and ROI, you'll be better equipped to choose a data analytics platform that not only fits your budget but also drives real value for your organization.

5. Verify Security and Vendor Reliability

In enterprise data analytics, security isn't a “nice-to-have” feature — it's a necessity that should be integrated into the platform from the start. Equally important is the reliability of the vendor supplying the platform and services.

Here are some important factors to evaluate:

• Security Measures: Start by examining the platform's security protocols. Look for robust encryption methods, both for data at rest and in transit. Multi-factor authentication and role-based access controls are must-haves in today's security landscape.

• Compliance Standards: Ensure the platform complies with relevant regulations like GDPR, HIPAA, or industry-specific standards. This compliance can save you headaches — especially if you operate in a regulated industry.

• Data Governance: A good platform should offer strong data governance features. This includes data lineage tracking, audit trails, and the ability to set and enforce data policies across your organization.

• Vendor Track Record: Research the vendor's history. How long have they been in business? What's their reputation in the industry? Look for case studies or testimonials from companies similar to yours.

• Reliability Metrics: Ask about the platform's uptime guarantees. A solid Service Level Agreement (SLA) should promise 99.9% uptime or better. Also, inquire about their disaster recovery and business continuity plans.

• Support and Updates: Evaluate the vendor's support options. 24/7 support can be crucial, especially if you operate across time zones. Regular updates and a clear product roadmap indicate a vendor committed to improvement and innovation.

Choosing a data analytics platform is crucial for your business’ success. It's about finding a solution that aligns with your strategy and needs. The right platform turns raw data into actionable insights and empowers informed decision-making across your organization.

Ready to revolutionize how your company uses data? Consider Qlik's comprehensive solutions. Qlik adapts to your unique needs with powerful integration capabilities. It offers advanced analytics features and a user-friendly interface. From data novices to seasoned pros, Qlik has tools for everyone.

Don't let valuable insights slip away. Try Qlik Sense® today and unlock your data's full potential.