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As much as we talk about the “power of real-time analytics” with Xledger financial automation software, we also realize the scope of that power, and the reason we talk about it so often might not be as evident if you have yet to experience it for yourself. But that will all change after today! This article will cover the impact real-time analytics can have on business decisions. 

Once you harness the power of real-time data, you will see how it can profoundly transform how you do business.

What is Real-Time Analytics?

Let’s start with what makes real-time analytics different from traditional analytics. 

Put simply, real-time analytics is the analysis of data as it is created or generated. This means data is processed and analyzed instantaneously, allowing for instant insights and decision-making.

Think of it as having to perform calculations with a pencil and a paper pad. While you’re still writing the numbers down, a calculator can give you an answer in seconds. 

But modern software is so powerful that even entering the numbers into a calculator can feel like an eternity. Real-time analytics is like having a spreadsheet that updates the calculations every time you make a change—instant results without any manual effort.

Why Real-Time Analytics Matter for Modern Businesses

Before we talk more about its specific benefits, let’s begin with how the need for real-time analytics has become more and more apparent for modern businesses.

We have real-time news, communication, and even entertainment at our fingertips, so it only makes sense that companies would also require real-time insights to stay ahead, doesn’t it?

Data volume

For starters, the sheer volume of data that businesses generate has grown exponentially in recent years. The latest estimates say that 328.77 million terabytes of data are created daily– this number is only set to increase as technology advances. With such vast amounts of data being generated, traditional methods of managing and analyzing data simply don’t cut it anymore.

Speed

Aside from the volume of data, there’s also the issue of speed. 

We live in an era of instant gratification, whether it’s the food we order or the content we consume. But businesses and their financial data are no exception. Customers expect quick responses, and competitors are constantly pushing the boundaries to be faster and more efficient. 

Real-time analytics allow businesses to keep up with this demanding environment by providing immediate insights that can be acted upon in real time.

Decision-Making

Not to mention, if businesses don’t have the most recent data at their disposal, they risk making major decisions based on old and inaccurate information. 

Naturally, this can have serious consequences, be they anything from missed opportunities to financial losses. Real-time analytics mean businesses have access to the latest and most accurate data which is an indispensable advantage in modern business.

Otherwise, the best businesses can do is make decisions based on past data; we all know that the past does not always predict the future.

The Impact of Real-Time Analytics on Business Processes

Okay, now it’s time to turn our attention to real-time analytics’ tangible effects on business decision-making. We know it’s fast and accurate and can provide insights right before our eyes.

But how does that translate into real-world applications? Here are five examples.

• Improved Efficiency

Improved productivity is one of the most apparent gains. Using real-time figures, enterprises can detect and sort out problems on time, minimizing the instances where manual actions are required and reducing time for breakdowns. Overall, it helps to save not only time but also costs linked to problem resolution.

• Better Decision-Making

Businesses also benefit from real-time analytics thanks to accurate and current information that helps them make better decisions. They can spot trends, patterns, or outliers in data that might have otherwise fallen through the cracks. 

The result is the ability to make more informed decisions—ones based on current market conditions and avoid any unforeseen risks. 

With such knowledge, organizations can then make more sustainable decisions and meet their strategic objectives.

• Proactive Problem-Solving

To solve a problem, you first need to know it exists. Without the most accurate and up-to-date information, it’s impossible to identify potential issues and address them before they escalate. Real-time analytics allows businesses to keep their finger on the pulse of their operations. 

Then, they can proactively spot problems and immediately resolve them. 

• Agility

One of the most powerful assets a business can have is agility. When they can quickly adapt and change strategies in response to market conditions or customer demands, it can make the difference between success and failure. Real-time analytics gives businesses the insights they need to make agile decisions and pivot their operations when and where they need to.

• Customer Service

We mentioned how agility helps businesses adapt to changing customer demands. But real-time analytics also directly impacts customer service. 

With instant access to data, businesses can better identify problems and issues customers are experiencing and take immediate action to address them. This level of responsiveness builds customer trust and loyalty, ultimately leading to higher satisfaction rates, loyalty, and profit. 

Case Study: Church of England Diocese of Birmingham

For even more insight into what real-time analytics does for real businesses, let’s consider the case study of The Church of England Diocese of Birmingham, a subset of 42 dioceses across England and Europe. The organization covers 300 square miles in the West Midlands, and its team of 220 staff and clergy oversees over 150 parsonages. 

On top of that, they must manage a complex financial system that relies on voluntary parish donations. This all boiled down to them needing a financial solution to streamline their annual processes and provide better visibility for informed decision-making.

Challenges 

Let’s take a closer look at what brought The Church of England Diocese of Birmingham to Xledger in the first place. 

The organization was facing a number of challenges, including:

• An outdated on-premise system supported by numerous spreadsheets.
• Lack of accessible, meaningful financial information.
• Limited data capture leading to excessive manual data entry.
• Lack of visibility across the organization.
• Complicated decision-making processes due to data inaccuracies.
• Non-compliance with Charity SORP at the data entry level.

Real-Time Analytics from Xledger

Upon implementing Xledger’s real-time analytics platform in 2016, the Diocese saw exciting improvements:

• Unified Cloud Solution: Delivered a unified, end-to-end cloud-based system for seamless data integration and centralized access.
• Agile Forecasting and Real-Time Insights: The platform enabled agile forecasting, budgeting, and project accounting with instantaneous insights.
• Automated Banking and Accounting: Streamlined banking and accounting processes, significantly reducing manual data entry and eliminating unnecessary paperwork.
• Enhanced Visibility and Reporting: Offered real-time dashboards and easy-to-access reports, providing better visibility across the organization.
• Facilitation of Digital Change: Helped the organization embrace digital transformation, enabling staff to work remotely with greater flexibility.

Results and Benefits

Within six months, The Diocese saw immediate and long-term benefits, including:

• Simplified Supplier Payments: “We just go online and ‘tick, tick, tick’ to review invoices on the system,” noted Financial Director Melanie Crooks. Xledger automates payments and sends remittances directly to suppliers.
• Greater Organizational Visibility: Enhanced data visibility helped the organization become better informed, improving decision-making in real time.
• Increased Efficiency: Processes that previously took two days were reduced to a single button press. This meant more time for deeper analysis and strategic planning.

This example underscores the immense value of real-time analytics in modern organizations that seek to improve agility and efficiency in their financial operations.

The Verdict: Real-Time Analytics Is a Game-Changer

What is the secret sauce behind success stories like The Church of England Diocese of Birmingham? Technologies that support real-time data collection, processing, and visualization. 

Xledger’s financial cloud ERP software is a prime example, with comprehensive dashboards, configurable reporting, and advanced analytics capabilities. These tools let businesses analyze data from every angle—no valuable insight is overlooked.

From effective decision-making to enhanced operational efficiency or gaining a competitive edge, the power of real-time analytics is undeniable. And your business deserves to have access to this power.

Book a demo with Xledger today to begin experiencing this power for your own business decisions. 

Did You Learn a Lot about Real-Time Analytics in This Article?

Here are three more to read next:

• How to Succeed in Data and Analytics
• What is Financial Reporting, and Why Is it So Important?
• How Finance Automation Tools Help Staff Add Value