BUSINESS ANALYTICS
In today’s dynamic marketplace, Data holds immense value as a resource. It has become essential for professionals in the business world to possess the skill of effectively interpreting and conveying data, as it plays a crucial role in making informed decisions.
What is Business Analytics?
Business Analytics refers to the application of mathematical and statistical methods to gather, analyze, and interpret data in order to enhance decision-making within a business context.
There are four primary categories of business analytics:
- Descriptive - Descriptive analytics involves analyzing historical data to identify patterns and trends
- Predictive - Predictive analytics takes this information to make forecasts and predictions about future outcomes
- Diagnostic - Diagnostic analytics aims to uncover the root causes of issues or problems
- Prescriptive - Prescriptive analytics utilizes testing and other techniques to determine the optimal course of action for a specific situation, identifying the outcome that will yield the best results.
Professionals across various sectors have utilized data-driven methods to make well-informed business choices and achieve success within their organizations.
Business Analytics vs. Data Science
It is crucial to emphasize the distinction between business analytics and data science, as they both processes use big data to solve business problems they’re separate fields.
The primary objective of business analytics is to extract meaningful insights from data in order to guide organizational decision-making. On the other hand, data science focuses on transforming raw data into significant conclusions by employing algorithms and statistical models. Business analysts engage in activities such as budgeting, forecasting, and product development, whereas data scientists concentrate on tasks like data manipulation, programming, and statistical modeling.
Although they encompass different functions and procedures, both business analytics and data science play crucial roles in today’s organizations. Presented below are four examples illustrating how organizations leverage the benefits of business analytics.