It’s a known fact that decision making driven by data rather than relying on manager’s intuition works far more efficiently. There are numerous studies that back this claim that organizations equipped with Business Analytics perform better than their peers. Business analytics is extremely vital for multi-dimensional analysis, data mining, data management, visual discovery, integration, and statistical methods which will in turn help in increasing profitability of an organization.
Let’s find out what exactly is business analytics. Business analytics is a new discipline which has arisen from the combination of two old disciplines, namely, Business Intelligence and Predictive Analytics.
Business analytics uses the functions of Business Intelligence like finding what happened, how it happened and why it happened. This enables the management to become alert and stop moving in the wrong direction. Business Analytics also uses Predictive Analytics for finding data patterns to forecast what will happen in future.
Application of Business Analytics includes the following steps:
- operational intelligence
- strategic and competitive analytics
- customer acquisition and retention
- risk management
- fraud detection
- demand driven forecasting
To become a profitable organization through Business Analytics, the firm needs to have knowledge about customers, regions, market segments and products which are profitable. Also, the organization needs to identify those market segments, customers, competitors and brands which are responsible for losses and take steps to stop the drainage of cash.
According to Thomas Davenport and Jeanne Harris, there are five stages of analytical competition as given below:
- Analytically Impaired: Absence of analytical skills
- Localized Analytics: Uncoordinated activities or silos.
- Analytical Aspirations: Good intentions with slow progress.
- Analytical Companies: Widely use analytics internally.
- Analytical Competitors: Use analytics as a competitive advantage.
Business Analytics is a basic discipline which helps an organization to identify the main causes of issues and outcomes. If the firm takes corrective action and satisfies the needs of customers quicker and better than its competitors, then it can become extremely profitable
Earlier, business analytics was expensive and used to be a part of only popular businesses. But now with a wide range of analytical applications to choose from, even small businesses can afford business analytics.
But still businesses are sometimes clueless about how to utilize business analytics for maximum profitability. You can always boost your business by joining Business Analytics course at iACT Global. Through iACT Global, you can study anywhere and at any time. Thus, for a profitable business, join iACT Global now.