By Ian Ferguson
Statistics play an important role in all business ventures. Every successful business person must be quick and accurate with their decision-making. They must know what their customers want, how best to produce it, and in what quantity. Statistics help a company plan production according to the taste of consumers and the quality of the product.
Business statistics can be used for quality assurance, financial analysis, production and operations, and many other areas. Just like general statistics there are two categories: Descriptive and inferential.
Descriptive statistics use the data to provide descriptions, either through numerical calculations or graphs or tables, while inferential statistics makes predictions based on a sample of data taken.
Statistics is an important field of study due to its application in almost all walks of life. It is an important branch of mathematics. It is the analysis, interpretation, preservation and presentation of data. Indeed, the role of statistics in business management is pivotal. It comes in handy, especially for rating organisations, financial markets and financial organisations.
The uses of statistics in business and management are limitless. With the proper skill to implement statistical methods, managers can increase the production capacity of any plant or find out the optimum production capacity; monitor the efficient management of work and employee performance; and limit the wastage of resources.
Here are seven reasons to implement an effective statistics department in your business today:
Eases performance management and evaluation
The use of statistics in business enables managers to handle their role better by making evaluation of performance and performance management easier.
Comparison of alternatives
Because a business includes more than just one person, there will always be multiple ideas that senior members need to discuss and choose from. In such cases, statistics assists the members responsible in making perfect comparisons so that they choose the alternative that will greatly benefit the business.
Research and development
The perfect short-cut to success is research. If all businesses spent more time and resources on research, the world would be filled with only excellent organisations and companies.
Through different forms of statistics such as questionnaires, surveys and taking indiscriminate samples, businesses are able to gather enough information about which market to hit and how best to develop their products or services.
Projection of future events
With the use of statistics it is possible to predict events that might occur in the future. It is always wise to be ready for any risk factors that might come up, so that when they actually happen your business will not be heavily affected.
Helps businesses in building long-term goals
In directing your business, the most important thing is statistics as it helps you to build long-term goals. Remember: Companies cannot only survive on short-term goals.
Aids in strategic advertisement
Statistics is used in evaluation of the market so that advertisers know exactly where they have to put their effort in order to maximise profits.
Attracting customers
People are easily attracted by numbers, so smart marketers can use them to attract more clients.
• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at iferguson@bahamas.com.
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