What to Expect from This Blog?
- What is Business Analytics?
- Types of Business Analytics Techniques
- Key Reasons Behind the Growing Importance of Business Analytics
- Importance of Business Analytics (12-15 Reasons with small explanations in bullets) (CTA)
- Evolution of Business Analytics
- Data for Analytics
- Scope of Business Analytics
- Why Choose Quantzig’s Business Analytics Solutions?
Business analysis has become a standard practice across organizations craving growth and market excellence and with reason. Organizational leaders need no longer depend on experience or sheer market knowledge to make decisions about how to steer their company forward. Business analytics does it for them.
What is Business Analytics?
Business analytics is the analysis of past business performance and results and using the insights from this analysis to prepare for the future. To do this, data engineers first collect and clean up the data to transform it into datasets and structures needed for analysis. The data scientists and analysts then use models, algorithms, and tools for analyzing this data. The insights from this analysis are made comprehendible with the help of data visualization tools and techniques.
Types of Business Analytics Techniques:
The primary types of business analytics are:
- Descriptive Analytics – analyzing data to learn more about the past
- Diagnostic Analytics – analyzing data to understand why something happened in a particular manner
- Predictive Analytics – Making use of insights from descriptive and diagnostic analytics to understand what is likely to happen in the future
- Prescriptive Analytics – analyzing data to understand what should be done to obtain favorable results in the future
- Cognitive Analytics – create analytics with human-like intelligence so that technologies can reveal context and find hidden answers
Do you want to know how business analytics can help you optimize your business processes and drive innovation, growth, and excellence across your organization? Speak with our experts now.
Key Reasons Behind the Growing Importance of Business Analytics:
1. Informed Decision-Making:
Business analytics provides organizations with valuable insights derived from data analysis. This empowers decision-makers to make informed, strategic choices based on real-time data, contributing to more effective and timely decision-making processes.
2. Performance Optimization:
Through the application of analytics, businesses can optimize their operations and performance. Analyzing data trends and patterns enables organizations to identify areas for improvement, enhance efficiency, and streamline processes for better overall performance.
3. Competitive Advantage:
In a competitive business environment, gaining a competitive advantage is crucial. Business analytics allows organizations to stay ahead by uncovering market trends, understanding consumer behavior, and identifying opportunities for innovation that competitors may overlook.
4. Customer Insights:
Understanding customer behavior and preferences is vital for business success. Business analytics techniques, such as customer analytics, enable organizations to gain deep insights into customer habits, preferences, and satisfaction levels, facilitating targeted marketing and improved customer experiences.
5. Risk Management:
Businesses face various risks, from market fluctuations to operational challenges. Business analytics aids in risk management by identifying potential risks, predicting outcomes, and enabling organizations to implement proactive strategies to mitigate risks effectively.
6. Resource Optimization:
Efficient resource allocation is essential for maximizing productivity. Business analytics helps organizations optimize resource utilization by analyzing data on staffing, inventory, and other resources, ensuring that resources are allocated where they are most needed.
Importance of Business Analytics
To understand why business analytics is the next big thing, let us understand why it is important.
1. Business Analytics Enables Faster, More-Accurate Decision-Making
Business analytics enables organizations to make faster, data-driven, informed decisions. It equips them with insights to improve efficiency, pre-empt bottlenecks, reduce unnecessary expenses, prepare better for adverse situations, and optimize their business processes. It prepares them better for the future and thus gives them a competitive edge over their contemporaries.
2. Business Analytics helps Organizations Improve Performance
Business Analytics helps organizations pinpoint inefficiencies across processes and enables them to improve performance while saving costs.
3. Business Analytics Enhances Customer Retention and Experience
Business analytics enable organizations to analyze customer sentiments and interactions with their brand and competitors and understand patterns that enable them to optimize customer experience, increase retention, reduce churn, and drive sales and profitability.
4. Business Analytics Minimizes Risk
Business analytics enables organizations to pre-empt adverse situations and helps organizations prepare better for it. It enables them to make all their processes agile and resilient.
5. Business Analytics Enables Organizations to Optimize their Manufacturing
With the implementation of analytics and automation across the end-to-end supply value chain, organizations can optimize planning, streamline spends, improve supplier management, enhance end-to-end visibility, reduce time to market, optimize operations and logistics efficiency, and meet budgets.
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6. Business Analytics Enables Organizations to Enhance their MROI
By creating data-driven marketing mix models, optimizing campaign and promotion plans, analyzing competition, and understanding customers, business analytics enables organizations to get the most out of their marketing spends and enhance their MROI.
7. Business Analytics Enables Organizations to Find the Right Pricing Strategy
Business analytics enables organizations to proactively adjust prices to fulfill customers’ needs without hampering organizational profitability. It enables them to gauge the impact of pricing activities on business, analyze the profitability of specific price points, and optimize their overall pricing strategy.
8. Business Analytics Accelerates Clinical Research
Business analytics enables healthcare organizations to capitalize on clinically rich insights obtained from real-world data to accelerate the timelines of clinical trials and improve the costs and efficiencies associated with clinical research and development.
9. Business Analytics Inspires Innovation
Business analytics enables organizations to not just optimize their existing processes, but also understand how to re-think their value chain and add innovation into the mix. This, in turn, enables organizations to become more efficient, understand customers’ needs and preferences better, and optimize profitability and sales.
10. Business Analytics Enables Organizations to Reduce Employee Turnover
HR professionals can make use of business analytics to examine the likelihood of an employee fitting in well with the company, tracking their performance, gauging employee satisfaction, and enhance employee engagement. This enables them to reduce churn and improve employee retention.
11. Business Analytics Enables Better Product Management
Business analytics enables organizations to analyze the popularity of their products by taking different parameters into account such as region, season. This analysis then enables them to market the right products at the right time, optimizing sales and profitability.
12. Business Analytics Enables Organization to Understand their Competitors Better
Business analytics enables organizations to conduct competitor analysis to better gauge what their peers are up to, what their strengths and weaknesses are, what are their future plans, etc. This data enables them to understand how to create a business strategy that will outcompete their contemporaries.
Transform your organization with data-backed actionable insights. Request for a free proposal to make use of our scalable advanced business analytics solutions to pre-empt bottlenecks, optimize processes, and enhance your competitive readiness and success.
Evolution of Business Analytics
1. Barter Economy and Early Statistics (Pre-1800s):
- Business analytics can be traced back to the barter economy, where rudimentary forms of statistical analysis may have been used.
2. Scientific Management (Late 1800s):
- Frederick Taylor introduced the first system of business analytics in the late 1800s, known as scientific management.
- Analyzed production techniques and worker movements to identify efficiency improvements.
3. World War 2 and Code Breaking (1940s):
- Gordon Welchman and Alun Turing used ‘traffic analysis’ during World War 2 to break the enigma code.
- This marked a significant application of business analytics in the field of code breaking.
4. Decision Support Systems (1970s):
- The advent of business computers led to the mass use of decision support systems (DSS) in the 1970s.
- DSS helped sort and filter large quantities of data, providing decision-makers with a comprehensive view of business processes.
5. Information Age and Microsoft Excel (1980s):
- The information age saw a surge in computer usage, leading to an increase in information storage capacity.
- Microsoft Excel, introduced in 1985, replaced handwritten ledgers and became a pivotal tool for data analysis.
- Business analytics expanded from data analysis in Excel to predictive analytics, involving simulations and scenario building.
6. Advancements in Hardware and Software (2000s):
- The 2000s witnessed advancements in both hardware and software, enhancing analytics capabilities.
- The advent of big data enabled organizations to handle massive volumes of data and extract actionable insights in real-time.
7. Integration of Big Data and Cloud Computing (2010s):
- Big data, cloud computing, advanced analytics, and automation became integral to business operations.
- Real-time interpretation of data allowed for dynamic changes in processes to achieve desired results.
8. Current Landscape and Future Trends (2020s):
- Business analytics has evolved into a must-have capability for organizations across industries.
- The job market for analytics experts, including data scientists, data engineers, analysts, and visualization experts, is expanding rapidly.
- Future trends include the integration of cognitive analytics, artificial intelligence, and machine learning for human-like decision-making and process optimization with minimal manual intervention.
Quantzig’s business analytics solutions not only enable you to solve your existing business problems and create better plans but also accommodate any possible dynamic business or industry changes, thus making your organization truly future-ready.
Data for Business Analytics
Gathering the right data to analyze is key to getting the desired results and developing accurate forecasts. The accumulation of data for analysis must start with two very important questions:
1. What kind of data is required?
- Primary Data – Raw data extracted directly from the organization’s official sources is called primary data. It is collected using methods like experimentation, observation, interviews, surveys, questionnaires, etc.
- Secondary Data – Secondary data is the data that has already been collected and used for another analysis.
2. What is the data source?
- Internal Source – The data found within the organization is an internally sourced dataset. The cost and time consumption for this type of data is considerably less. Some examples are sales records, marketing records, sensor data, website traffic data, production data, inventory data, etc.
- External Source – The data that is not available internally and must be sourced from an external resource is externally sourced data. They cost more and consume more time in sourcing and cleaning. Some examples of external sources are news publications, government publications, private data repositories, syndicate services, satellites data, etc.
Scope of Business Analytics
The scope of business analytics is not limited to one industry, sector, system, or process, but spans across the end-to-end organization. Companies from any sector can implement business analytics to optimize their processes. Some areas where business analytics creates high-impact optimizations and drives ROI are:
- Hiring and Recruitment
- Supply Chain Planning and Operations
- Logistics and Transportation
- Inventory Management
- Sales and Marketing
- Customer Experience
Why Choose Quantzig’s Business Analytics Solutions?
The experts at Quantzig create focused advanced analytics solutions, turning data into actionable insights that allow us to target and transform different areas of the client’s business. Our advanced analytics expertise spans industries, sectors, and functions. We are not just experts at analytics but also excel at bridging the gap between analytics insights and business logic. We not only provide you solutions to your complex problems but ensure that our solutions are operationalized across your organizational processes.
Speak with our analytics experts to know more about our solution portfolio and how we can help you drive innovation, growth, and market excellence across your organization.
The need for business analytics across global industries is ever-growing. Business analytics is helping organizations keep their product offerings relevant, maximize reach, discover new business opportunities, pre-empt bottlenecks, prepare for adversities, and tap into new revenue streams. Business analytics is also enabling organizations to provide optimized solutions to their customers, thus enhancing customer experience and loyalty.