When is the last time you opened Google and searched for something? If you are reading this article, your answer would be 5 minutes ago. When is the last time that you have submitted your e-mail ID for entering into a website to consume the contents of that website? May be an hour ago, or a day or week ago. This shows that your data is being completely captured by these platforms for their improvement. With tons of people going online every single minute, searching for millions of queries, every single activity is recorded in the form of data in the system.
Sometimes, intentionally you provide your data in terms of email addresses, phone number, website url or link to your social media platforms for various purposes. These data are also used in business analytics by different businesses to know about the customers. However, data driven decisions are not that new at all. It has been for so many years now.
Though business analytics as a study has emerged recently in the past decade, data and analytics were there from several years ago. All the businesses take decisions based on the data from their potential customers earlier in the form of market research, surveys and so on. The business analytics helps in easy decision making for all the businesses from large business to small business.
Business intelligence now directly translates into descriptive
analytics and business analytics. These are the latest data driven solutions that helps driving
businesses using data and understanding customers using data. Let us set everything aside and
understand what is business analytics? Before jumping into the concepts in business analytics,
having knowledge about the definition of business analytics is important. Earlier, collecting
data and performing business analytics in the conventional way was affordable only to the larger
firms, as it involved a higher cost in terms of skilled man power in analytics and tools for
business analytics. Definition Of Business Analytics can be put like this. Business analytics is
the process of collating, sorting, processing, and studying business data, and using statistical
models and iterative methodologies to transform data into business insights.
The goal of business analytics is to determine which datasets are useful and how they can be leveraged to solve problems and increase efficiency, productivity, and revenue. Business analytics is more of a prescriptive approach. Data driven decision making through Business Analytics is highly devoted to the methods by which the data can be analyzed, patterns recognized, and models developed to clarify past events, create predictions for future events along with recommending some potential actions to be taken by the organization to maximize ideal outcomes. Highly enrichened data, quantitative analysis, and mathematical models for Business analytics are all employed by business analysts to engineer solutions for data-driven issues.
These business analysts are people who leverage the use of data for
the betterment of the company they work for. They can utilize statistics, information systems,
computer science, and operations research to expand their understanding of complex data sets,
and artificial intelligence, deep learning and identify patterns in the segregated data and
analyzed further. This information can then be leveraged to accurately predict future events
related to consumer action or market trends and to recommend steps that can drive consumers
toward a desired goal. The first step in this journey is the understanding the importance of
data driven business analytics. These business analysts are the most important people to deal
with the data and draw the conclusions.
Some of the skills needed for Business Analytics are given. Having the right skills for business analytics execution is very important. Some of the skills to be developed to become a best business analyst are having expertise in the following: Having good mathematical skills, Statistical knowledge, The ability to work with data, by interpreting data, Problem solving skills, Methodological thinking, Logical reasoning knowledge, Programming languages like Phyton, SQL, Oracle, Using the computerized models. The importance of business analytics is highly evitable. It is not a surprise that business intelligence and data analytics especially the business analytics is one of the fastest growing markets in the world today. The businesses today are growing more and more digital. This drives a lot of data into the system. This helps us to accurately predict the entire customer behavior and the segment of customers, how they are consuming and giving out the data.
Data collected in the raw form is not useful as it is highly unorganized. The importance of data and its analysis lies in the proper insights that can be driven out of these data that are being collected and analyzed using business analytics. To reach these insights, organizations must use business analytics tools and techniques to connect data from multiple sources, analyze the data, and communicate the results in ways that decision-makers can understand. Among all those importance of business analytics in service sector is gaining more attention due to the increased number of service organizations coming up each day. Different Types Of Business Analytics. The advantage of business analytics lies in the tapping of the different types of business analytics and understanding it from the core so as to leverage its uses for the benefit of the business.
1. Descriptive analytics
It involves business intelligence and data mining.
Almost 90% of the organizations in the world use descriptive analytics for their business. It
involves analyzing the data that is coming inside the organization including the real-time data
and historical data, for getting insights on how to approach the future of the organization.
Most of the information we get from social media data are coming under this category of
2. Predictive analytics It involves forecasting. Predictive analytics can help an organization to only forecast what might potentially happen in the future because this analysis is problematic in nature and is filled with uncertainties. Business analytics and data analytics is one way to reduce the data in a useful format and analyzable form. Predictive analytics is generally used to answer the questions that cannot be answered using the descriptive analytics.
3. Prescriptive analytics It involves simulation and optimization. Prescriptive analytics is one of the advanced analytical concepts which is mostly based on optimization of data to achieve a maximum outcome, understanding how to achieve the best outcomes and identifying data uncertainties to make better decisions, used to produce the credit score which can help the financial institutions decide the probability of a customer payments. With all these you can understand that it is high time you know the role of business analytics in shaping the future of your business. As increasing number of organizations realize that big data is a competitive advantage and they should ensure that they choose the right kind of data analytics solutions to increase ROI, reduce operational costs and enhance service quality.