Business analytics is a field that drives practical, data-driven changes in a company. Its goal is to draw concrete conclusions by answering specific questions about why things have happened, what will happen, and what should be done.
Let’s learn more about this concept and the advantages it can have in all types of organizations.
What is business analytics?
Business analytics is a set of disciplines and technologies to solve business problems through data analysis , statistical models and other quantitative methods. It involves emphasizing statistical analysis to drive decision making.
Data-driven companies treat data as a business asset and actively look for ways to turn it into a competitive advantage. The success of business analytics depends on the quality of the data , the existence of qualified analysts who understand the technologies and the business, and the commitment to using the data to obtain information that informs business decisions.
How business analytics works?
Before carrying out any data analysis, business analytics begins with:
- Determine the objective of the analysis.
- Select an analysis methodology.
- Obtain business data to support analysis, often from multiple systems and sources.
- Clean and integrate data into a single repository, such as a data warehouse .
The initial analysis is usually performed on a smaller sample data set. Analysis tools range from spreadsheets with statistical functions to complex data mining and predictive modeling applications. Patterns and relationships are revealed in the raw data. New questions are then asked and the analytical process is repeated until the business objective is achieved .
The deployment of predictive models involves a statistical process known as scoring and uses records that are normally found in a database. Scores help businesses make more informed, real-time decisions within business applications and processes.
Business analytics also supports tactical decision making in response to unforeseen events. Decision making is often automated using artificial intelligence to support real-time responses.