What to Expect from This Blog?
- What is 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.
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.
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.
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Evolution of Business Analytics
Since business analytics is based on statistics, it can be argued that business analytics existed during the time humans first created the barter economy. The use of statistics truly began shortly after the advent of the industrial era in the late-1800s, when Frederick Taylor introduced the first-ever system of business analytics in the US—scientific management. This system was used to analyze the production techniques used by manufacturing plants and the body movements of workers to identify means to attain greater efficiencies. During the 1900s, Taylor’s system inspired Henry Ford who measured the completion time on his assembly line of each component of his Ford Model T. The analysis not only transformed his work in the automobile sector, but also the manufacturing industry across the globe.
Traces of the use of business analytics can be seen as far back as World War 2 when Gordon Welchman worked at Bletchley Park with Alun Turing to break the enemy’s enigma code. They devised a method called ‘traffic analysis’ of encrypted messages which enabled them to understand which of the messages were important and worth deciphering. This was a turning point in the world war and brought about a new era for code-writers and breakers.
In the 1970s, the advent of business computers and their regular use at large corporations led to the mass use of decision support systems (DSS), which helped sort and filter larger quantities of data from various business processes. Examining different clusters of data through filtering processes which gave decision-makers a bird’s eye perspective of their business was a game-changing experience in the world of business innovation.
We are not just experts in advanced business analytics but also excel at bridging the gap between analytics insights and business logic. We not only provide you with solutions but see the implementation and impact through to the end. Speak with our experts to know how we can help your organization.
The use of computers across the globe continued to increase during the 1990s, the information age. The technology boom in the information age led to a tremendous increase in information storage capacity. As a result of this, company performance reports became an accepted means to communicate the current state of business and began fueling the decision-making process. Microsoft Excel was introduced to the world in 1985. This completely removed the need for hand-written ledgers. From being confined to analysis of data in Excel, business analytics expanded to building simulations and models to create scenarios, understand realities, and predict future states, marking the birth of predictive analytics.
During the 2000s, more advancements were made in both hardware and software that enhanced analytics capabilities. The advent of big data-enabled organizations to handle tremendous volumes of data and gather actionable insights from them with ease. The interpretation of data became more and more real-time and enabled business professionals to make changes in their processes in real-time to obtain desired results.
In the last decade, big data, cloud computing, advanced analytics, and automation have become an integral part of all business operations across the globe. Today, business analytics has become a must-have capability for organizations across industries, and the job market for analytics experts like data scientists, data engineers, data analysts, visualization experts, chief analytics officers is growing tremendously. The future of business analytics is making use of cognitive analytics, artificial intelligence, and machine learning which enables technologies to have human-like intelligence to make decisions and optimize end-to-end operations and processes while requiring very low to zero manual inputs/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.