Business analytics is the study of skills, technologies, and practices for continuous analysis of past business performance to optimize future business processes. In simple words, business analytics is a data-driven tool used by companies to gain insights into the business’s past performance in order to make the right decisions in the future.
A successful business analysis depends upon the data quality, skilled analytics and an organizational commitment to using the data to gain fruitful insights that will help drive informed business decisions.
There are 3 specific types of business analytics:
- Descriptive Analytics – The one which tracks KPIs (Key Performance Indicators) to understand the current state of a business.
- Predictive Analytics – The one which analyses the data trend to access the possibilities of future outcomes.
- Prescriptive Analytics – The one which used the past performance data to generate recommendations to handle similar situations in the future.
Let’s talk about the advantages & disadvantages of business analytics.
Advantages of Business Analytics
- Helps you monitor the progress of your mission
Quantified values and data help the business improve their analytical process by evaluating the data to gain a clearer picture of what to expect from the employees. Also make sure the result of these analytics is shared with the employees, if they are well informed, they can work on their weak areas to become more productive.
- Helps increase efficiency
Business analytics can gather a large amount of data at a fast rate and display it in a formulated and appealing way to help achieve specific organizational goals. Analytics encourages a culture of efficiency and teamwork by allowing the employees a chance to share their insights and contribute to the decision-making process.
- Helps you be updated
Customers tend to change their minds easily if swayed by better offers. Analytics gives you insight into how your target market thinks. This will allow you to be dynamic at all times to better serve the needs of your customers.
Also Read : Advantages & Disadvantages Of Business Analytics
Disadvantages of Business Analytics
- Lack of alignment, availability and trust
In most organizations, the analysts are organized according to the business domains. Unfortunately, the analysis is shared with the top executives and thus the results are not easily communicated to the business users for whom they provide the greatest value.
- Lack of Commitment
Since the solutions that are prefabricated from the analysts are not particularly difficult to implement; they can be very costly and the ROI is not immediate. By nature, these analytics models are prepared to improve accuracy over time but it is a complex model that requires dedication to implement the solution. Because the business users do not see the promised results immediately, they lose interest which results in loss of trust as a result of which the models fail.
- Low quality of underlying transactional data
Implementation of the solutions provided by the business analysts fail because either the data is not available, the data sources are too complex or they are poorly constructed.
Business analytics requires a dedicated and coherent approach and a good level of maturity. In order to become a good business analyst, you need to take a business analytics course. Nowadays, there are several online business analytics certifications available. These business analytics courses help you a great deal with adopting the best measures to identify data sources based on mapping analytical requirements.
Often while skimming past heaps of data, consumers tend to ignore it as they do with their mobile software updates unless that data contains a reservoir (a database) that requires continuous analysis. The need to analyse data forms a basis for many businesses to stay abreast of their competitors and craft a niche market for themselves. This is why it is crucial for business analytics professionals to stay up-to-date with the basic and advanced concepts.
Also Read : Business Analytics – Meaning, Importance & Scope
Different Concepts of Business Analytics You Must Know
There are certain concepts that form the crux of business analytics. Though, the dynamic industry keeps on incorporating new features to stay relevant with the changing times which the professionals should know in detail about. The ideal and cost-effective way to gain in-depth knowledge about these concepts is by pursuing credible online courses like the XLRI certification courses. Until you decide to enrol in one, here are the basic concepts of business analytics you must know about:-
- Correlation Analysis
This concept delves into the relation between two different variables often comparing them to form a relationship. It’s usually done to check if the assumption made by the professionals stands true or not.
- Data Mining
This concept involves the research of mammoth data sets (Big Data) using patterns or trends to prove their usefulness to the business. Working on the above-mentioned concept, the Data Mining tool relies on the relationship between two variables as well.
- Experimental Design
Here, analytics test the rationality of a strategic plan. This is done using some researched hypothesis, mapping a unique marketing plan or sometimes via altering the packaging design. It’s usually performed to change a segment of organization that’s reluctant to do so with one which is quite flexible.
- Factor Analysis
It’s a rather parent set of correlation analysis wherein heaps of variables are compared instead of two as in the correlation analysis. Impetus is laid to minimize these variables thereby leading a reduction in the data required by the business analysts.
For example, consider a ODI cricket match between India and Australia wherein a large number of data involving the player can be considered but the outcome is decided by certain key factors.
- Linear Optimization
Moving on from factor analysis, this concept uses a large data-set/s and breaks it down to a handful of actionable steps. Analysts use a linear mathematical model to determine the best possible result that fits well with the business constraints. These constraints can include man-power, time, finance and raw materials.
This concept involves revisiting the research done for an issue and trying to decipher it from a different point of view. This leads to saving time & energy which would have been otherwise spent on an organic statistical research.
- Regression Analysis
This concept involves the power of one variable over another in terms of effect on the outcome. It is performed to check on past data to reflect on the effect caused by one variable over another to develop a new business analytics strategy.
To gain in-depth knowledge about these concepts and their practical application, consider enrolling for credible business analytics certifications online. One such certification course you can pursue is the XLRI business analytics certification.
How Can Professionals Benefit from The XLRI Certification Course?
XLRI understands that not every participant taking these courses would be doing the same tasks for their business, hence the courses have been critically planned to cater to business analytics professionals, managers and recruiters.
So without further ado, here are the reasons why one should opt for these courses:-
Also Read : Trends in Business Analytics 2021
- On-campus Sessions for Two Weeks
A two week on-campus session would be provided around the beginning and end of course.
- Exposure to Applications that Use Analytics Across Various Domains
Impetus has been laid to to teach practical business analytics applications pertaining to domains such as Finance, Marketing, HR, Operations & Digital Media.
- Certificate of Completion & Alumni Status by XLRI
Upon the successful completion of the XLRI business analytics certification, the participant will be rewarded by Recognized PG certificate & Alumni status from XLRI.
- Guaranteed Capstone Project for 3 months
The participants would be required to apply all of their course practical knowledge towards an extensive project at the end of their business analytics online courses.
- Practical Application of Python, R, MS Excel & Minitab
The participants will get hands-on experience by working with tools like Python, R, MS Excel, Minitab etc.
- Deep Learning of Text Mining, Machine Learning and Digital Media Analysis
Through this XLRI business analytics certification you can gain hands-on learning of leading concepts such as Text Mining, Machine Learning and Digital Media Analysis would be provided.
Why Choose XLRI?
Hands-on experience inter-layered with correct knowledge about business analytics leads to a successful business. So how does anyone become a business analytics pro? Simply by avoiding shoddy rookie mistakes? No, the ideal way is to opt for the XLRI business analytics certification courses. These courses have been mapped out in a way that the professionals not only gain theoretical knowledge but also practical application of this domain.
Also Read : Postgraduate Certificate In Business Analytics
Why is Business Analytics Important?.
Business analytics has and will be relevant in any given time frame as it:-
- Enhances customer experience
- Improves Efficiency
- Identification of Frauds
- Slash manufacturing costs
- Make most of the investment
- Improvement in advertising
- Better product management
- Acceleration through uncertainty
- Conducting competitor analysis
How is Business Analytics Relevant in The Digital Age?
The Digital Era has brought about a tremendous surge in services such as self-service, multi-faceted connectivity and customer service. Digitalization has led the customer into the limelight with all business analytics processes revolving around them. There has been a shift from traditional practice of seller-oriented business to a one which is more empathetic and relies on experience. This creates a platform for customization of products. processes and services. The digital tools available today along with social media has narrowed the gap between business analytics and the customers thereby bringing them together.
The Bottom Line
Any professional who wants to up their ante in the business analytics sector would benefit quite a lot from the business analytics online courses. These courses intertwined with its salient features and the essential practical application can help the professionals go a long way in sustaining the growth of their organisations.
The XLRI business analytics certification’s curriculum is easy to understand, flexible and provides decent hands-on experience that is the need of the hour. With the changing times especially with the current pandemic situation, the course content allows the opportunity to learn and grow as an individual.
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