Traditional data analysis is the process where massive amounts of data are collected, then analyzed to gain valuable business insights. These insights are important for understanding trends or patterns and making effective predictions. Business analytics, also referred to as business data analytics represents this process of data collection and analysis.
More specifically, business analytics is the process of collecting and processing historical data on business and analyzing such data to identify causes and locate patterns. With such knowledge, it becomes easier for business leaders to make effective business decisions. Business analytics has gained immense popularity and importance in recent times due to the massive volume of data being generated from varied sources.
Interested in a data analytics career? Consider enrolling in a course or joining a program like MBA in business analytics to learn the skills you’d require to succeed in your career. Read this article to know more about business analytics and how it can positively impact a business.
There are four methods of performing business analysis –
- Descriptive – interpreting data to identify patterns or trends
- Diagnostic – interpretation of collected data to determine the cause of a specific thing
- Predictive – using statistics to make forecasts or business outcomes
- Prescriptive – the application of different techniques (like, testing) to determine which decisions or outcomes are likely to yield the best result in a specific scenario
How can business analysis help a business?
- Data-driven decisions – With the help of business analytics, critical business decisions become easier and smarter to make. It becomes smarter as it is backed up by data and is, therefore, more informed. Quantifying the causes behind certain things and identifying trends in the market is a smarter approach to take towards making decisions related to the future of the organization through manufacturing, marketing campaigns, sales outreach, etc.
- Easy to visualize- Business analytics software uses a tremendous amount of data and translates it into simple but effective visualizations. This makes insights a lot more accessible for business users and by displaying data in a visual format newer ideas get easier to formulate. It also allows the viewing of data in a different format. During company exits, these insights would help determine the strengths of a company’s data assets, particularly in data valuation processes, further increasing its net worth.
- Modeling the what-if scenario- Business analytics enable predictive analytics which creates models for the users to find patterns and trends. Such a study helps to predict future outcomes, and this was previously entirely the domain of advanced data valuation. With the advent of business analytics software that is powered by machine learning, such models can be generated within the platform in no time. This also enables business users the chance to tweak the models too by creating what-if scenarios. In such scenarios, the variables are slightly tweaked without the need to create complex algorithms.
- Go augmented – All the above points take into consideration how business data analytics expedites business decisions through user-driven insights. However, today, business analytics software powered by AI and machine learning, unlocks the power of augmented analytics. The augmented analysis enables the ability to adapt, learn, and process data in bulk quantities for automating processes and generating insights without human intervention.
Get enrolled in a program today to get started with your career in data.
