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The Importance of Business Analytics

Did You Know?

The Business Intelligence market is going to see a CAGR (Compound Annual Growth Rate) of 26.98% from the period of 2017 to 2025.

The tech titan IBM indicates that the number of job profiles for business analyst roles will rise to 2.72 million from the present number, which is 364,000.

Do you want to know how Business analytics certification can enable you to land on a career that is rewarding and has high earning potential? Have a look at some astonishing stats about Business Analytics:

  • To gain a competitive edge, 83% of business leaders have pursued big data projects.
  • The average ROI (Return Over Investment) is a huge 1300% for the enterprises using Business Intelligence and Analytics.
  • Around 90% of corporate strategies will exclusively mention information as a crucial enterprise asset and analytics as a critical competency by 2022.

And the most important one,

  • The organizations that are data-driven are 23 times more likely to gain customers, 19 times more likely to be profitable, and 6 times more likely to retain customers.

Today, analyzing Big data sets existing within the organizations has become a crucial part of informing decision making for a competitive edge in the present corporate scenario. The use of Business Analytics is on the rise, and it will play a central role in business strategies in coming years. 

Wish to know more about Business Analytics and its importance? Read below.

What is Business Analytics?

Let us see how the famous research firm Gartner defines Business Analytics. 

“ The solutions used to build analysis models and simulations to create scenarios, understand realities, and predict future states.”

So, put simply, the practical application of statistical analysis and techniques on existing business data to determine and project trends and predict business outcomes on the basis of those findings is referred to as Business Analytics. The process of Business Analytics involves statistical analysis, data mining, predictive modeling, and more. The primary focus of business analytics processes is on driving better business decisions.

Techniques of Business Analytics

Harvard Business School Online defines three main techniques of Business Analytics, as mentioned below:

  • Descriptive analytics

It helps you analyze what is going on in your business at present. The descriptive analysis leverages historical and current data to describe the current state of an organization by determining patterns and trends. 

  • Predictive Analytics

It enables you to answer the question of what is likely to happen in the future? This kind of analysis uses statistical modeling, machine learning, and forecasting to make predictions regarding future outcomes.

  • Prescriptive Analytics

It is the application of testing and other methodologies to recommend specific solutions capable of meeting business objectives. 

Simplilearn, a reputed digital skills training company, describes the fourth technique:

  • Diagnostic Analytics

It helps to diagnose or identify factors responsible for the past or current performance of the company.

When you look at the complete business analytics lifecycle, you will find that the process starts with collecting raw data from devices or services, then collecting it in unstructured form, processing and analyzing data so as to draw meaningful insights. To deliver better outcomes for the future, these are then integrated into the procedures of the business. 

Advantages of Business Analytics

To mention in one phrase, business analytics provides actionable insights for businesses. The main benefits of Business Analytics are according to Simplilearn are, however:

  • To improve operational efficiency by way of their day-to-day activities.
  • Enables businesses to understand their customers more specifically.
  • Businesses deploy data visualization that anticipates future outcomes. 
  • These insights enable businesses in better decision-making and plan for the future.
  • Business analytics facilitates measuring performance, thereby driving growth.
  • Identifying hidden trends, generating leads, and scaling the business in the right way. 

Importance of Business Analytics

Let us now explore the importance of Business Analytics for businesses:

  • Business analytics is capable of transforming raw data into highly valuable inputs to utilize this information for better decision-making.
  • You can have a clear understanding of primary and secondary data generated from their activities with the help of Business intelligence tools. This allows businesses to refine their procedures again and improve their productivity.
  • To gain a competitive edge, companies are required to be ahead of their peers and possess all the latest toolsets to help in their decision-making in enhancing efficiency as well as generate more profits.

Example of application of Business Analytics

Beginning in 2016, Microsoft’s workplace analytics group worked with CBRE, a commercial real estate company, to find out how the physical workspace fosters collaboration. It utilized an analytics project to form the base of the layout of its new workplace. Microsoft evaluates that the changes it made, as a result, saved almost a hundred hours of work per week across around 1200 employees, eventually leading to estimated cost savings of USD 520,000 per year in employee time and improved collaboration within the teams. 

The Scope of Business Analytics

There are a wide variety of applications where business analytics can be applied. Businesses today are using descriptive analytics to understand the market position in the current scenario. More reliable measures are generated by predictive and prescriptive analytics to trigger growth in such a competitive environment.

The last decade has seen an increase in the adoption of business analytics, eventually making it a leading career for professionals who wish to acquire excellent earning potential and guiding businesses to drive growth with meaningful information. 

Conclusion

Today Business Analytics has revolutionized the methods of identifying meaningful insights and gaining more profits for their organizations. Since Business Analytics is beneficial for both as a career and for organizations as well, you can always choose to make a career in this domain.

There are reputed online training providers that can help you get through the certification course and earn the certification. The online training course can train you through the tools and industry projects so that you are trained in-and-out with the course. The study goes trouble-free as you can learn at your own pace. Also, some training providers provide you life-time access to the study material for free once you register yourself in the course.

Enroll Yourself Today Itself!

ABHIYAN
the authorABHIYAN
Abhiyan Chhetri is a cybersecurity journalist with a passion for covering latest happenings in cyber security and tech world. In addition to being the founder of this website, Abhiyan is also into gaming, reading and investigative journalism.

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