These days, advanced technologies associated with big data and data analytics are changing the business world at an unprecedented pace. With solutions such as the SAP Analytics Cloud, businesses of varied scales and different industries use data to drive better results with minimal effort.
Hence the food and beverage industry is no different as businesses from this sector, be it restaurant owners or farmers, leverage data analytics to augment their business. More specifically, this has helped many businesses gain enhanced control over different aspects of their food production operations. Therefore, let’s sneak a peek into how data analytics has impacted the food and beverage industry.
Impact of Data Analytics in the Food and Beverage Industry
It is fair to say that data analytics and data science as a whole is empowering the food and beverage industry in almost every stage of the product life cycle. One can leverage data analytics to manage every stage involved in the process, including transportation, processing, storage, product development, and even delivery. Therefore, let’s dive deeper and better understand these impacts.
- Promoting the Product: This might surprise many, but data analytics can be very helpful in promoting a product. One could use the valuable insights to create targeted marketing campaigns that will drive augmented results. For instance, one could leverage the NLP algorithm to analyze people’s sentiment by evaluating different social media posts to determine how people feel about the product. This will be very helpful in eliminating all the guesswork from marketing campaigns which automatically increases the chances of generating better results.
- Developing the Food Products: Many farmers now use data analytics to predict different weather conditions and even the yield of the soil. When one can predict the food yield for any given period, this helps them make better decisions about storing and transporting the said products. Once you know in advance about your transportation requirements, you can further make feasible alterations that will further help you save more money. In addition, if you have a precise idea about your yield, you can devise better strategies for storing the products appropriately to minimize losses caused by avoidable wastage.
- Controlling and Monitoring the Quality: Quality is the top-most priority for any food and beverage industry business. If you fail to ensure the quality of your products, the chances are that customers will choose your competitors over you. This is where you could leverage big data and data analytics to ensure thorough monitoring of your products. You could use this technology to monitor your product from the point of production until it is sold to the end customers. This means you could predict the shelf life track their conditions to facilitate further effectiveness. Also, it helps you prevent the sale of expired products to ensure no one succumbs to chronic diseases that can further impact the goodwill of your business.
- Forecasting the Demand: When it comes to planning the production of the food business, it is imperative to determine the demand for the product. While this was almost impossible earlier, data analytics has become very easy. Making precise forecasts about the customer demand can help a business minimize its cost, ensure appropriate allocation of resources, and, most importantly, boost the revenue generated by the business. For instance, one can use this technology to determine the number of times certain customers visit a restaurant or even the frequency of ordering any specific food item on the internet. You can also analyze your customers’ sentiments to determine the products they prefer the most and plan your production accordingly.
Application of Data Analytics in the Food and Beverage Industry
Technologies like data analytics have great potential to revolutionize the food and beverage industry for good. However, you must ensure effective planning strategizing to make the most of this potential. Therefore, here are a couple of steps to make this easier for you.
- Know Which Data will be Valuable: Collecting data from everywhere and not putting them to good use is just a waste of resources. Therefore, it is highly recommended you have a clear idea about the data that would yield value for your business. Also, ensure appropriate storage of existing data to generate insights from historical data whenever needed.
- Develop an Ideal Data Processing Infrastructure: Big data is very different from the conventional IT infrastructure of businesses. Therefore, ensure an excellent infrastructure with optimum computing capacities, data storage capabilities, and integration with existing business components. Evaluate the condition of your legacy system because sometimes an upgrade is enough for effective data processing.
- Leverage Varied Tools to Generate Insights: There are many tools available that can be used to generate valuable insights. However, it is mostly recommended to use a robust and performant solution like the SAP SAC. SAP Analytics Cloud is the ideal solution for leveraging data analytics because it is equipped with some of the finest competencies that will help you drive better planning and decision-making.
- Use the Insights Appropriately: Now that you have the insights, use them to make better and more informed business decisions. You can use these insights in many different ways to aid the growth of your business. Also, make sure that your staff and employees are aware of the potential of insights because it will help make their lives much easier in different ways.
- Keep Up with the Latest Trends and Technologies Associated to Data Analytics: Data analytics is anything but a static technology. People from all around the world are working together and sharing their work to enhance technology further. This means that things are evolving almost constantly, making it imperative to keep up with the data analytics trend and technologies. Keeping up with these changes will allow you to leverage the changes and developments useful for your business.
Data analytics is no longer a thing of the future, and every business in the food and beverage industry must use this technology to its full potential. Furthermore, the competition in this sector is of a whole different level, so chances are if you fail to leverage data analytics, your competitor will leave you behind. Therefore, stop contemplating and use data analytics for good.