Mon, 05 Dec 2022

Why is Business Analytics Important?

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02 Oct 2022, 01:24 GMT+10

The digital transformation of business has revolutionized how managers work in a dynamic global marketplace. Companies use data, the keystone of competitive edge, to participate and grow. They are leveraging Data Analytics to create business value.

With Data Analytics transforming how businesses function, companies have adopted analytics as part of their business DNA. Business Analytics eliminates inherent bias in decision-making by integrating a data-driven business process. Managers get real-time Business Intelligence and predictive analytics to make the right decisions. The traditional decision-making process of laborious meetings, presentations, and analysis revisions, is replaced by scientific data analytics. And with the digitization of analytical processes, companies can now be agile in their response to business dynamics in a real-time scenario.

The growing importance of Business Analytics means companies are actively hiring analytics professionals who can leverage analytics to solve business problems in a challenging setting. Fresh graduates and working professionals passionate about data may like to register for a Business Analytics Course to improve their career scope in a data-driven business landscape.

What is Business Analytics?

Traditional Data Analytics is the process of analyzing massive amounts to gain insights and make predictions. But Business Analytics is the set of disciplines and techniques that takes the insight and analyzes it in the context of the business problem using data statistical models, tools, and other quantitative methods. In Business Analytics, companies leverage historical and real-time data to extract insights for informed decisions.

Business Analytics takes the following path:

  • Identifies the business goal of the analysis
  • Selects the methodology to process and analyze the data
  • Extract, clean and integrates the data
  • Identifies trends and patterns
  • Understands the KPIs and iterates the process of asking questions to refine the analysis
  • Deploys predictive models for businesses to make tactical decisions
  • Reports progress on business objectives to the team lead and stakeholders

Reasons why Business Analytics is Important

According to a MicroStrategy study, 60 percent of businesses rely on data analytics to cut costs and improve efficiencies; 57 percent use analytics-driven insights for strategy and change management, and 52 percent agree that data analytics is critical for improving financial performance.

Organizations employ Business Analytics for insights into trends and patterns for business optimization and process automation. It forms one of the mainstays in the business transformation journey. And there is no denying that Business Analytics helps in risk mitigation, resource optimization, and customer satisfaction. ,

With more and more companies relying on Business Analytics for their decisions, companies are incorporating it into their business models to transform how they operate.

Business Analytics plays a critical role in the survival and growth of businesses. In today's cutting-edge market environment, every organization is looking for ways to use its data for business advantage.

Let us explore the many ways Business Analytics is important in today's transformative business landscape:

1. Make Informed Decisions

Analytics helps businesses understand customers, supplier performance, and production efficiencies to make effective and timely decisions that work best in prevailing market conditions.

2. Enhance Customer Experience

Companies crunch the massive customer data to analyze customer behaviour. Based on the metrics and insight, they make changes in the customer-facing web portals and offline stores, and manage social media platforms for engaging with customers and collective feedback.

The analysis is used to send push notifications for increasing sales, offer cross-sells and upsells to cut down customer abandonment, retain existing customers, and enhance the overall better customer experience to ensure brand loyalty.

3. Improve Efficiency

Businesses use analytics to analyze resource use, optimize IT systems and manage their marketing processes.

Where problems within the existing infrastructure and IT systems are not identified or patterns detected, business owners can incur huge losses due to operational silos or a pause in current operations. To avert such situations, business owners leverage Business Analytics to detect problems and make data-driven decisions for speedy solutions.

4. Cut Manufacturing Costs

Companies use analytics to reduce manufacturing costs by optimizing the manufacturing process and identifying areas of pilferage, outage, and process silos..

5. Product Management

Retail companies use Business Analytics to identify market opportunities, decide the time to roll out products, identify products with a positive impact on sales and brand value, and match customers to products.

6. Tackle Problems

Business problems are ongoing, and managers keep revising options, business processes, and models to suit the changing conditions. Not keeping up with market changes, business risks, regulatory compliance, and evolving customer expectations can create a massive business loss for a company that is not ready for the fluctuations. With Business Analytics, however, companies can use their data to be market- and customer-ready.

7. Navigate Uncertainty

The global lockdown during COVID brought to the forefront the importance of being risk-ready for uncertainties. In such times, Business Analytics can optimize costs, resolve supply chain issues, and take decisions for effective and timely management of crises as they occur.

8. Fraud Management

Companies use Business Analytics to identify and mitigate fraud in credit cards, online purchases, and more. This helps avert loss and potential penalties from gaps in compliance, to maintain the brand image.

9. Marketing Management

Advertising and Marketing campaigns are expensive, and companies want to improve their Returns on Marketing Investment (ROMI). They use analytics such as A/B and C split-testing and leverage KPIs to evaluate and tweak their promotional activities to maximize outcomes. Business Analytics is used at every step, from positioning the website and social media platforms to optimizing marketing and advertising campaigns and tweaking products and services for customer satisfaction and higher sales.

Bottomline

As employers look for skills in data-driven problem-solving and experience with analytical tools, wannabe analysts must take courses to improve their hiring chances. Understanding how to implement analytical techniques and technologies for business outcomes is an in-demand skill whose demand will only grow.

Candidates who want to prepare for a future in a data-driven environment must focus on learning Business Analytics and its ability to solve real-world business problems.

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