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Why Data, Analytics, AI and ML are key to the success of Private Equity investments.

If you’ve invested in a business with a goal of increasing its value before eventually selling the company at a profit then Data, Analytics, Artificial Intelligence (AI) and machine learning (ML) are critical tools.

The Headlines in numbers

  • Data, analytics, AI & ML can elevate your margin from between 5 - 40%.
  • 73% of data kept by companies is unused for data analytics (Gualtieri M, 2016), because most of its potential lies dormant, it is either locked up somewhere where it can’t be easily accessed, or it isn’t business-ready.
  • Less than 5% of firms have a data and analytics strategy showing them how they will generate value from data and analytics.

 

What you can expect

Data and analytics can be used in Private Equity to create opportunities to maximise margins and release capital to pay off debt can be achieved through, such as through the analysis of employee productivity or supply-chain inefficiencies. Data science is critical for identifying opportunities for where these savings can be made.

Optimisation of revenues can be achieved, as an example, through the analysis of up-sell and cross-sell opportunities as well as customer profitability analysis, potentially using a single view of the customer, which in turn, improves customer satisfaction.

Automation of low value, repetitive tasks through the use of AI can provide you with the opportunity to reduce your cost base. 

Machine Learning (ML) can help you identify new value generating opportunities where the volumes of data and complexity of your data are too much for humans to comprehend or find. 

Your Private Equity due diligence process can be enhanced by analysing customer data, financial data, and product data by looking at history and trends, identifying issues through outliers, and identifying opportunities to scale. Rapid analysis of the underlying data can give you essential insights before investing: identifying potential issues or opportunities lurking beneath.  

This is where DataTick comes in. 

These are a range of specific and relevant services that DataTick can provide to help you. 

  1. We have proven techniques to help you identify how your data can drive business value. We will bring examples of case studies as well as new ideas that lead to creative approaches to well-proven techniques. Our rapid analysis of your data sources helps us to develop an understanding of your current data infrastructure and capabilities, enabling us to assess your ability to deliver value.
  1. We will create a data and analytics strategy to ensure the business and data teams alike are aligned in generating that value. 
  1. DataTick will define the quick win data activities to support your business transformation programme to create valuable change. 
  1. The ability to scale your data, analytics, AI, and ML capabilities cost effectively across your business will be key to your success. DataTick will help you do that. 
  1. We will establish if your data functions are fit for purpose by assessing agility, quality of output, quality of the team, productivity, and effective use of tools and techniques. After identifying bottlenecks or weaknesses, we work to optimise your teams to improve focus, performance, and motivation. We will establish processes to ensure their activities are efficient and that progress can be measured. 

Conclusion 

DataTick - Focussed on value

DataTick – We don’t land and expand. Call us when you need us. 

DataTick – Are with you to make a difference, quickly. 

DataTick – Wrote THE book on data and analytics strategy for business so you know what we’re talking about. 

Get in touch 

If you need help understanding how to get the most value out of your data, get in touch with our experts by email or give us a call. We’re happy to help!

Email :                         info@datatick.co.uk

Call :                            (0333) 772 2204

Website:                       www.datatick.co.uk

Watch the video:           https://youtu.be/w47yWc_ZfeI

Buy the book:               Amazon

 

References

Gualtieri, M (21 Jan, 2016) “Hadoop is data’s darling for a reason”. Forrester Research.

 

Get in touch

If you need help understanding how to get the most value out of your data, get in touch with our experts by email or give us a call. We’re happy to help!