Introduction: What is Business Analytics?
This is a more advanced skill set using technology and current practices where a person or person(s) analyze how a company is doing. That way they can move forward with a more streamlined approach, learning from the mistakes of the past.
The Three Features:
1) Descriptive: This is an in-depth approach to recognize business patterns and trends.
2) Predictive: The data analytics are used to predict what could be a potential future forecast for the business (also called predictive analytics).
3) Prescriptive: Which outcome will bring the best results for future business handlings? That is where the testing comes in handy. That way the company can make better business decisions than they did in the past.
The best method(overall)depends on the company and its goal.
What Is the Importance of Business Analytics?
1) Companies will develop a better decision-making process. Most companies use something called A/B testing (which can involve more advanced analytics if needed).
2) The company will have greater revenue. Sometimes a company’s profit and loss statements suffer due to lack of information.
According to a study by BARC (read more at https://bi-survey.com/big-data-benefits) has proof that most companies will have a 6-8 percent lead after analyzing the data. That leads to a greater profit and a 30% reduction in the costs you pay.
FYI: One thing that could help with projecting future growth is using business analytics software. Software like that can give you graphics and other templates that will help give you a better understanding of where potential growth is and where you need to let go of the dead weight.
3) A company’s operational costs and structure will improve dramatically. One example is being able to see when the hard times are going to hit. Analytics can help you pinpoint possible issues at least seven days out.
4) Analytics helps you to know the value of your company. You cannot know how much your company is worth without knowing the value first. That includes documenting the tangible and intangible returns.
5) Where are you going? You cannot know that unless you know where you have been. You have to meet a balanced goal of strategic goals and tactical returns.
“Too much of one thing does not leave room for anything else”.
Business Analytics Vs Business Intelligence: What Makes Them Different?
BI reporting tools is somewhat similar to the analytics in that it provides detailed information on how to move a company forward through data analysis and other technical skill sets. It is there to provide a platform for better decision-making for the business.
Once again, that does sound similar to the analytics portion, so I am going to explain a few differences.
1)A Brief Overview
The first difference is that intelligence is needed to run the company. The analytics portions are needed to change the face of the company and how it moves forward.
A great analogy is a car you drive. The rearview mirror is the intelligence portion of the company. The analytics part is in the front looking ahead. Intelligence holds the keys from the past. The front seat has the keys to analyzing the past and how it helps the future.
2)The Past, Present, and Future
The intelligence portion looks(specifically) at what happened and why. You cannot make better choices concerning the future if you do not know why it fell apart before. The intelligence is going to dig deep, but not too deep. The intelligence will analyze everything until it is ready for the analytics portion.
The analytics will pick things up and finished the work. Then, it can provide an outline of what happened, what the company learned and an outline as to how to proceed.
3)Correlation and Causation: Are The Two the Same Thing?
The answer is: no, they are not. You cannot always trust what your eyes are seeing. Your eyes will lie from time to time.
4) Bi is about going beyond the assumptions and the BA is about finding a game plan for avoiding those assumptions in the future.
5) You need the intelligence to understand what failed during a sales cycle. You need analytics to help avoid those traps in the future.
Five Trends to Watch For
1)Automation Reporting
This sets a future benchmark for companies that advance to the next stage.
2)Data Quality Management
It is a structure that helps to improve future business outcomes.
3)Data Visualization
Business associates can understand information when it is presented through imagery and graphics. It helps companies make tough decisions a little bit easier.
4)AA (Augmented Analytics
It combines human intelligence with machine capabilities.
5)Embedded BI
This is about combining the power of analytics and intelligence with technological advancements companies are already using.
