With the evolution of technology like big data and machine learning, businesses are more inclined towards learning from data. Not to mention the integration of data floating in all verticals of a company such as marketing, sales, finance, operations, etc. This is where business analytics plays a vital role. By helping decision-makers study, analyse, and interpret data, business analytics allows companies to develop new insights. Let’s get down to business and learn the A-Z about business analytics.
Business Analytics – An Introduction
Business analytics is a field that combines data, information technology and statistical analysis into one robust model. All these combine and provide decision-makers with all the possible scenarios to make a well-informed, data-driven decision. The statistical analysis ensures that decision-makers are comparing past figures and data with current information to detect variance in performance under different scenarios. To delve deeper into this domain, consider pursuing online analytics courses.
Importance of Business Analytics
- Simply put, business analytics is a process that helps make a sound commercial decision. It holds power to impact the entire organisation’s functioning. Therefore, it can help improve profitability, revenue, boost market share, and provide a better return on investment.
- By helping understand and interpret the available structured as well as unstructured data more comprehensively, business analytics affects the operational efficiency of several departments.
- It also helps companies gain a competitive edge. When an organisation, by way of business analysis, knows what their customers are looking for and how they wish to achieve it, decision-makers can have the edge over the competitors.
- The best characteristic of business analytics is that it converts available data into valuable information that helps in attaining the desired outcomes.
Scope of Business Analytics
With rapidly evolving technology and also the dynamic business environment, organisations are looking for an easy method to focus their attention on increasing profit while cutting operational costs. Business analytics is the key to unlocking this.
Let’s see the scope of business analytics and how, in different verticals, it helps lower costs.
- Client Relationship Management
To efficiently manage, analyse, and interpret customer data, business analytics is the key.
The overall customer service experience and service is the backbone on which the entire customer relationship depends on. And, when an organisation can accurately measure as well as analyse their inefficiency in serving their customers, they can start improving the process.
- Inventory Management
Managing the supply chain is essential, be it a small business, a medium enterprise or a multinational corporation. Incapability in inventory management can lead to loss, disintegrated processes, and not to mention increased costs. Business analytics can help businesses efficiently observe inventory levels and determine the amount of inventory they need to tackle any challenges or unforeseen circumstances.
- HR Professionals
Business analytics and HR? Feel like something doesn’t add up, right? Well, not quite. Business analytics plays a significant role in the HR domain. HR professionals can utilise data to find information about the educational background, employee attrition rate, number of years of employees on service, their age, gender, everything. This can help in the selection of applicants while interviewing.
Future for Business Analytics Professionals
The future for business analytics is very bright, so professionals looking to build a career in this domain are in for the ride of a lifetime. This also means that the demand for such professionals will also be on the rise, so to get an edge, you need to have some aces up your sleeves. One way to hone your skills and give yourself the edge is by pursuing online analytics courses. Online analytics courses from credible platforms can equip you the latest tools and technologies that other applicants might not know about. One such online program you can pursue is the business analytic online course from IIM Kozhikode. Offered on the Talentedge platform, the business analytic online course from IIM Kozhikode helps you inherit the skill-set and training you need to succeed in this domain.
As a new-age business, operating in a world full of social media updates and news, there is so much information that comes to you, about your consumers or even potential consumers. All data elements that reach you, whether through formal sources or informal ones, need to be converted into information that you can use, for decision making. Data is forming the biggest part of an organization’s business strategy and future goals right now.
When the data is converted into information, it takes the form of intelligence or analytics. Courses for business analytics talk about these concepts in detail.
Here we will take a brief look at what differences exist between these.
Business Analytics is usually carried out using statistical analysis, to be able to determine why certain trends are showing up or specific things are happening. The analysis is oriented towards finding answers to certain concerns, based on past or present data. Business Intelligence, on the other hand, is related to using the data to understand how it can be used and what decisions can it enable the company to make.
Analytics does help in predicting trends for the future. A lot of the Business Analytics is mainly about predictive modelling and sharing insights on what you might face, and therefore preparation for the same. Intelligence, on the other hand, gives a great depth of information for the data at hand. So business intelligence is what sets the foundation for the decision making that an organization undertakes. It shifts the focus from intuitive based decisions or judgement based approaches, to actual fact-based decisions.
Business Analytics is mainly related to making changes to the business or its direction. Business intelligence, on the other hand, is focused on sustaining the business. Therefore, if as an organization, you plan to switch gears and move into another direction, the analytics are what will help you to make crucial decisions and validate your approach. If you are planning to build stability in your existing venture, intelligence is what will help you in choosing how to define steps to do that.
Both these terms have often been used interchangeably. While there are some fundamental similarities between them, there are several differences too. The orientation for Business Intelligence has always been towards reporting the actual analysis that has been undertaken. It is the logical next step after Business Analytics since it shares implications that analyses have uncovered. So knowledge of both these areas is equally important for all business professionals, irrespective of their functional areas.