Business Analytics: Process and Benefits for Companies – Now, times are increasingly modern. Various technological advances are used in every activity in human life. By using technology, everything, be it tasks, work, or problems, will be resolved more quickly, easily, and efficiently.

The business world is also technology-based. Many companies use data and technology in carrying out their business processes. One of them is to make decisions.

In order to make good decisions, companies need to produce appropriate and useful data and information. Therefore, companies need to carry out techniques for analyzing data and information often known as business analytics.

Business analytics is a set of technological processes in the form of compiling, sorting, processing, and studying business data which aims to solve business problems by carrying out data analysis, statistical models, and other quantitative methods.

Career paths that utilize business analytics are database developer, database administrator, data engineer, and data analysis manager.

There are several types of business analytics that you can apply in your company, including descriptive analysis, diagnostic analysis, predictive analysis, and prescriptive analysis.

The benefits of business analytics are also varied, such as making decisions based on data easier, and easier to visualize, creating what-if business models, and making it easier for companies to remain competitive.

Understanding business analytics

Business Analytics: Process and Benefits for Companies
Business Analytics: Process and Benefits for Companies

Business analytics is a set of technological processes in the form of compiling, sorting, processing, and studying business data which aims to solve business problems by carrying out data analysis, statistical models, and other quantitative methods. The business analytics methodology will be carried out repeatedly. Then, the data obtained will be converted into business insight. Companies use data as a business asset and turn it into a competitive
advantage in competing.

By using business analytics, companies are able to create strategies, improve relationships with customers, identify market opportunities, measure potential
risks, and even reduce threats by conducting past evaluations and analyses.

The success of business analytics depends on data quality, a skilled analysis process in understanding technology and business, and a commitment to using
informative data.

As reported by Michigan State University, there are several career paths that utilize business analytics, including:

  • Database developer: improves the database to be able to handle unprocessed and well-organized data
  • Database administrator: organizes, maintains, and secures databases to store information for the organization
  • Data engineer: creates large data sets to help analyze and decipher incoming data
  • Data analysis manager: interprets and communicates data effectively to help make important decisions and develop strategies for the future.

Types of Business Analytics

Various types of business analytics, including:

Descriptive analysis

The first form is descriptive analysis. Descriptive analysis is one of the simplest forms of business analytics. In this process data aggregation and data mining techniques are used which describe or summarize business data to get an overview of past and current events.

Descriptive statistics are also applied to existing data to provide convenience to investors, shareholders, marketing executives, and sales managers.

The use of descriptive analysis can also help companies identify strengths and weaknesses and provide insight into customer behavior.

Diagnostic analytics

Different from the previous type, diagnostic analysis uses drill-down techniques, data discovery, data mining, and correlation to find out the cause of an event. The diagnostic analysis will find out the “what”, “how”, and
“why” both in the present and the past. You can use OLAP ( Online Analytical Processing ) operations to maximize diagnostic analysis.

Predictive analysis

By using statistical models and machine learning techniques, predictive analysis can estimate possible future events to anticipate various risks in business.

This analysis uses accurate algorithms and statistical models for higher predictions. Predictive analytics produces detailed reports that can support complex forecasts for sales and marketing.

Prescriptive analysis

Because producing the best action recommendations for the company makes prescriptive analysis more advanced than predictive analysis. This analysis also relies on a strong feedback system and analysis from repeated testing and research in studying the relationships between various actions and their results.

The results of the prescriptive analysis are in the form of an explanation of the actions that must be taken after knowing the business risks and their implementation in achieving company goals.

Business Analytics Process

Business analytics starts with several basic processes:

Data collection

Collect data from various existing sources such as IoT devices, applications, spreadsheets, and social media. Then, all the data is sent to the center. Using a cloud database at this stage can make the data collection process much easier.

Data mining

After the data is received and stored, it must be sorted and processed. Furthermore, various repeatable patterns and methods, such as creating metadata, and gaining insights, will be accelerated through technological algorithms

Conduct descriptive analytics

Descriptive data analytics will find answers to what happened and why it happened. This is useful for building a better understanding of the data

Conduct predictive analytics

With sufficient data and adequate descriptive analytics processing, business analysts can start building predictive models based on trends and historical data. This business model can be used to inform future decisions regarding business and organizational choices

Visualization and reporting

Visualization and reporting can help break down numbers and models so readers can easily capture and understand what is being presented.

Generally, the analysis will be carried out on a smaller data sample. This is used using analytical tools in the form of spreadsheets which have statistical functions to search for complex data. The business analytics process will be carried out repeatedly until the company’s business goals are achieved.

Benefits of business analytics

The use of business analytics can benefit every aspect of the company.

Makes it easier to make decisions based on data

With business analytics, decisions that previously felt difficult can be made easily. Using data, companies will also more easily identify existing causes
and trends and create smarter ways for the future of the organization.

Ease of visualization

Business analytics software can take large amounts of data and turn it into imple yet effective visualizations.

Create a what-if business model

Predictive analytics can create a model for users to understand trends and patterns that will have an impact in the future. Supported by business analytics software, this model can be created in platform form.

Keep competing in competitive times

With business analytics, companies can compete competitively using the latest tools in decision-making increase efficiency, and generate more profits.

Example of Business Analytics

There are several tools that can perform advanced data analytics functions automatically and require few special skills or in-depth knowledge of programming languages. With this tool, companies can easily manage their business and utilize data from the internet or other sources. Below are some
examples of business analytical tools :

  • Dundas BI
  • Knime Analytics Platform
  • Qlik’s
  • six sense
  • Splunk
  • Painting
  • Tibco Spotfire
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