How Is Business Analytics Carried Out And What Are Its Means To Emerging Businesses?

Business analytics is the art of deriving effective insights from business data and utilizing it for the growth of an organization. A survey by Microstrategy reveals that business analytics and insights will boost business productivity by 75% in the next 3 years. This suggests the crucial role that business analytics will play in the age of big data. The problem, however, that we may face in the data age would be related to the shortage of business professionals that have exclusive knowledge of analytics. It is in this context that we would require independent training institutes to take up the upskilling job. One of the most notable institutions in this regard is analytixlabs. Analytixlabs reviews online suggest that it not only provides high-quality education and training to professionals but also prepares them for the future job market.

How is business analytics carried out?

Business analytics is carried out in four primary ways. The first important among these is called descriptive analytics. In descriptive analytics, we rely on historical data sets for deriving insights and predicting future trends. Descriptive analytics is named so due to the detailing that is carried out during the insight process.

The main purpose of diagnostic analytics is to explore the reasons behind the various business processes with the help of quantitative data sets.

The third type of business analytics is called predictive analytics. This type of analytics is heavily dependent upon statistics for forecasting future events. Predictive analytics finds application in financial sectors as well as the E-Commerce sector. This sector has witnessed a growth rate of more than 50% in the last two years and the credit of this exponential growth goes to predictive analytics.

The fourth type of business analytics is called prescriptive analytics. The most important methodology followed in prescriptive analytics is called sandbox methodology which involves testing new products and services on a small scale before commercializing them on a large scale. This strategy is extremely important to test the outcomes of various products and services in the case of business analytics. Prescriptive analytics prescribes a methodology for taking the right action during business processes and helps in course correction.

What are the long-term benefits of analytics for an emerging business?

There are a lot of benefits that accrue out of business analytics. Firstly, business analytics needs informed decision-making by backing the strategic team with quantitative facts. We can call analytics the connecting link between different types of business strategies and decision sciences. Secondly, analytics also helps in boosting the revenues of a company in the long run. A report by McKinsey predicts that businesses making use of predictive analytics would grow at more than 10% compared to the businesses that are devoid of analytic strategies. In addition to this, business analytics helps in improving the operational efficiency of an organization and boosting its productivity.

Concluding remarks

In the age commanded by data, it is extremely important for businesses to rely on analytics as this seems to be the prime factor in steering organizations to higher growth levels.