Discuss about the Business Analytics for Concepts, Techniques and Applications.
With the increase and data and technology it has become increasingly important for any business organization to employ proper tools in the domain of the business so as to ensure that business on a whole performs considerably well in order to be able to gain a sustainable advantage in the long term of the business enterprise. Business Analytics has become quite popular and many large business houses have been employing it into their daily business functions to seek differentiation and ace the competition. The business analytics can be described as the technologies, skills, practices and investigation used to analyze the past business performance to gain the insight and understand the factors which were responsible for failure and success. This contributes towards predicting the future performance of the business. The main analysis is done using statistical methods and data. The article will discuss the increase in the application of the business analytics in the domain of the business and discuss the ways in which Analytics can be used for Effective business decision making process.
Business Analytics can be stated as the study of the data with the help of statistical and operational analysis. It is based on the formation of predictive models, application of the different techniques of optimization and the communication of the results arrived at to the different parties like business partners, customers and different college executives. Basically, it can be stated that Business Analytics requires the primary use of Big Data.
Big Data can be described as a term which is used to define the large volume of data and inundates the business on a regular basis. The data itself holds no relevance, if the analytics is not performed on the data. Business Analytics and other relevant tools are popularly used to analyze the Big Data which is available to make better decisions for the firm.
Analytics in business is primarily used for the purpose of growing the business and seeing to it that the foresight of the business can be analyzed. Business involves high stakes and thus it requires hard work and sustenance. Business owners need to be largely aware of the fact that how to identify the different customers and use relative data to find ways in which customers may be served in a better manner. The ways in which analytics can be useful in a business have been stated as follows:
Analytics can be used to expand the business. When the organization has relative information about the growing customer base and asset maintenance then they can be used effectively to build a detailed business plan.Analytics can be used effectively in this scenario to help in finding the insights in visualizations and dashboards and then research further to help in understanding the results of such expansion plans.
It is crucial for the business to be well prepared and to be able to identify the correct target audience which the firm will be able to serve appropriately. Thus, Business analytics can be performed using social media analysis and customer internal data.
The real-time interaction with the data also assists in formation of the plans of the current happening which then can be used with analytics to forecast the different trends in sales, growth and turnover. Hence, creation of business plan becomes considerably easier.
Marketing also forms an essential part of the organization and once the business has attained adequate information about the local competitors and the audience then the different campaigns can be made and designed accordingly as per the data which has been analyzed effectively.
Banks like Capital one often make use of data analytics to differentiate among different types of customers which is largely based on credit risk and also differentiate them on the basis of usage and characteristic as well. The Harrah`s which is a gaming firm also makes use of analytics for the customer loyalty programs. A telecom company also uses efficient analytics in order pursue efficient call center usage for customer service.
Businesses can largely benefit from becoming more analytical across the different spheres and understanding its operations, customers and processes more efficiently while making the different decisions. The analytical efforts of the business need to be well targeted in order to ensure that it performs well. It is important for the business enterprises to make a differentiation in the market in order to be able to attain competitive advantage.
The different business houses in order to embark on their analytical journey need to identify the specific business problems which need to be targeted effectively. It can be the quality of the product or the performance benchmarks which need to be improved. The companies need to see to it that their integrated business processes are contributed toward the improvement of the business operations and to see to it the customers are well served in the organization. Business enterprises need to keep a good target which will then be fulfilled with the help of using business analytics. It goes a long way in contributing insights rather than just information. For example, it is the name of a Tesco to understand the different customers better than anyone in the industry and hence for this purpose, they are required to utilize analytics to predict the trends and understand product demand.
Analytics helps in taking right decisions by finding the different opportunities which are available for the organization and use the approach of analytics in the given case. The strategic plan of the organization concentrates on finding the different opportunities for the growth of the business but analytics helps the business in finding a logical place to look out for the different opportunities which may not be able if the company does not apply analytics. The strategy formulation process requires the application of analytics and helps the company to set definite targets.
Furthermore, it is considerably important for any business organization to measure the business trends effectively and be able to understand the trends of the competitors and use them for the long term success of the business. However, the analysis of the industry is quite limited in nature and for this purpose, analytics can be effectively applied in order to be able to predict the trends of the future. They can contribute towards making an in-depth analysis of the different activities and the future outcomes as well.
For this purpose, two different approaches for decision making can be adopted. This includes a bug picture thinking which tends to shape the trend of the business and the different trends like demographic, economic trends and changes the customer would like to see. The performance assessment is done and what works best for the business is figured out.
Secondly a systematic survey of the inventory in a business processes can be done with respect to the key business decision mining and thus the benefits of analytics can be reaped effectively.
Using business analytics, the given can be incorporated:
Complex decisions with various steps and variables
Simple decisions where consistency is desirable
Decisions wheel understanding of connections and correlation is crucial
Business areas requiring forecasting techniques
The benefits of decision making with analytics are given as follows:
The businesses can use data driven decisions to gain the following with the help of business analytics
Can conduct data mining which assists in finding new patterns and relationships
Helps in conducting statistical analysis and quantitative analysis
Tests like A/B testing and multivariate testing can be conducted
Predictive modelling and predicting analytics can be done to forecast for the future.
Furthermore Business Analytics can also support the companies in making proactive tactical decisions and automate the entire decision making process to support real time responses for the same.
Conclusion
Therefore, from the given analysis it can be stated that business analytics tends to play a key role in the domain of the business and that it is increasingly important for the domain of business. The article discussed various ways in which business analytics contributed to decision making in an organization and should be implemented for long term success.
References
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