What Is Business Analytics

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What is business analytics? This question may have been asked hundreds of times but the answers are surprisingly simple. Business analytics refers to the special techniques, skills, and methods for continuous iterative analysis and exploration of past business performance to maximize insights and drive forward business strategy. Business intelligence (business analytics) is a relatively new term, but is a far cry from “business software” or “business process improvement.”

The heart of business analytics is advanced statistical methods for representing and analyzing historical data. In other words, what is business analytics is statistical methodologies for what is actually happening in the business environment. Data is retrieved by exploring a large number of techniques-both historical and operational. Many techniques are empirical in nature, whereas others are predictive. Historical data is the basis for approximating future results using past data; the idea is that past results can be used to make better decisions today.

Today’s business analytics trends are more than just recursions back through the company’s history. Business analytics trends are predictive in nature, using complex and sophisticated statistical algorithms to predict what will happen in the future. With a focus on the past, business analysts use techniques such as time series analysis, contingency tables, and neural networks to study past decisions, their results, and their implications for the company today. Understanding how people acted in the past is critical to learning how people will act in the future.

Data mining is an area of business intelligence that falls under what is business analytics. This technique relies on large databases to support and compare different techniques. It basically means using past data to find patterns and relationships. The results from this type of analysis are used to inform and guide future decision making. In addition, historical data mining is also used to gather information about specific companies, their products, and their competitors.

The goals of what is business analytics are two-fold. First, the analytical process helps managers make better decisions in areas where their current expertise is lacking. Second, the analytical process provides quantitative insight into the activities of the organization, allowing managers to formulate strategies more efficiently. The statistical analysis, when combined with other forms of analytics, allows managers to make informed guesses about what might happen in the future. As a result, they can adapt their plans and policies to better accomplish organizational goals.

In what is business analytics, managers apply statistical techniques to collect and analyze real or historical data from the customer experience. These data are used to understand customer needs, discover opportunities, design new services, develop new products, and respond to competitive threats. Data mining provides quantitative insights and allows managers to make better informed decisions.

Data-driven decision making requires that managers be able to visualize, analyze, and adapt to the changing landscape of the marketplace. In what is business analytics, a manager can apply what is learned from statistical studies to improve business performance. Data-driven business is dependent on a robust set of research tools and techniques. The key is to balance what is known with what is needed.

What is business analytics can be applied to every area of decision making. Analysis of customer trends, market segments, and geographic location can provide managers with deeper insights than ever before. These insights allow them to adjust their strategies, products, and services to take advantage of opportunities before others do. And when others do get an idea, it allows your business analyst to act faster than your competitors. By applying what is analytics to all areas of decision making, a business analyst can arm the company with the tools, analytical skills, and statistical information to excel in the competitive marketplace.