With the development of technology, in today’s business world or companies are able to access to millions of data. But these millions of data is so valuable, but it is not meaningful unless data is processed. To process of data or to use of data in a right way we need to understand Business Analytics. As you know it is a very popular topic nowadays. What is Business Analytics? And why is the need Business Analytics?
First of all, business analytics has been defined as “a process of transforming data into actions through analysis and insights in the context of organizational decision making and problem solving” (Liberatore & Luo, 2010). It means transform the raw data to information for better and effective decision making in the business world with the help of technology.
According to Evans, Business Analytics have three key disciplines. These are statistics, business intelligence and information systems, and modeling and optimization. By using these three component, we transform and interpret the data for business solutions.
Well, why is there a need for Business Analytics? Why we need to transform the data? When we transform the data we get an valuable information to make a decision-making. This valuable information gives the business the answers of some questions like What happened? , What is the problem?, Why did it happen? , What will happen?. The answers of these questions include predictions, actions to be taken, bad things, good things or things to improve, recommendations. It means that these answers help the managers make the right decisions about business process improvement, planning, sales, costs etc. As a result, right decision making improves efficiency, increase profits, achieve company goals. For this reason, nowadays almost all sectors need business analytics solutions to business expansion. The sectors of finance, marketing, human resources, operations, health are just some of them.
To sum up, business analytics is a decision making process by using statistics, technology and business intelligence. It helps business world to find the efficient ways to manage their companies, so business world and employers look for the people that have the ability to understand and analyze the data in today’s world.
References:
Evans, J. R., & Lindner, C. H. (2012). Business analytics: the next frontier for decision sciences. Decision Line, 43(2), 4-6.
Business Analytics 