The field of business is one of the areas where proper data and information matter the most. After all, receiving the correct information can be the difference between making a decision that harms the company or that takes it to new heights.
Furthermore, in this world full of technological innovation, it is easier than ever before to collect any necessary data. However, it is one thing to know how to acquire data and another thing altogether to know what to do with it. Learning how to properly analyze data in order to identify patterns and correlations is what occurs in the field of data analytics.
When data analytics is applied and harnessed in order to influence the policies and decisions of a business, this is referred to as business analytics. Today, especially in global power cities such as Singapore, masters of the field of business analytics are highly valued for their ability to collect and analyze data in order to maximize the company’s profitability. It is widely believed that the use of factual data will lead to proper decision-making and solid corporate leadership.
Here is everything you need to know about business analytics:
What does business analytics involve?
Business analytics primarily involves using quantitative methods, such as a detailed statistical and operational analysis, to determine the best course of action for a business. Unlike data analysis, which deals purely with the data itself, a business analyst will apply this data to the challenges facing the business.
The goal behind business analytics is to evaluate the problem at hand and make specific, evidence-based recommendations as to how the problem can be solved. Business analytics is also often used during strategic planning when a business wants to determine its future goals and objectives. A business analyst will be asked to determine which goals are feasible and to justify this using the data gathered.
What makes business analytics important?
Business analytics is highly useful to any company that seeks to profit and grow. In fact, companies that properly utilize business analytics have a significant advantage over their competitors. First, business analytics allows the company to correctly identify both internal and external challenges to the business, as well as the strengths and weaknesses of the business relative to dealing with these challenges. This allows the business to assess itself properly, and thus figure out the best way to move forward.
At the same time, business analytics is helpful for companies in conducting a review or audit of their previous business decisions. Using certain tools, business analysts can test previous decisions and explain why certain results occurred the way they did, as well as future forecast results, are given certain decisions. This ensures that the company is justified in making all of its decisions, and provides a reasonable degree of certainty.
What can business analytics do for a company?
Business analytics has a wide range of applications, not only within one specific aspect of a business but also across various business sectors. For example, restaurants can make use of business analytics to streamline their operations and increase efficiency in order to reduce waiting times for customers. On the other hand, casinos use business analytics to ensure that a customer gets to win a few times in order to keep them playing, as well as to identify which customers are likely to spend more and that they can profit the most from, thus helping keep the business profitable.