What is Business Analytics?
Business analytics refers to the skills, technologies, and best practices that empower organizations to iteratively explore and investigate past business performance to gain insights that help drive future business outcomes. Companies use business analytics for data-driven and smart decision making. Business analytics helps companies derive the desired outcome for businesses. It also enables companies to optimize and automate business processes and achieve a competitive advantage by offering insights that help them to :
- Explore data and find new patterns
- Conduct statistical and qualitative analysis effectively and explain the reasoning to certain results
- Validate previous decisions using multivariate testing and A/B testing
- Utilize predictive analytics and predictive modeling techniques to predict future results
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Benefits of Business Analytics
Benefit #1: Encourages smart decision-making
Jetting off in the wrong direction can derail a business process. Fast decision making is easy, but smart decision making is more important for businesses in a short span of time. Business analytics empowers companies to easily access crucial data to make smarter decisions and stay ahead of the curve.
Benefit #2: Offers actionable insights through data visualization
Business analytics uses customized dashboards, charts, and graphs that can make decision-making more interesting. By leveraging analytics solutions businesses can gauge their performance and improve their bottom-line. The visual representations of relevant and extracted data provide detailed information about the target market and enable businesses to offer personalized services to customers.
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Benefit #3: Keep businesses updated
Today customers are digitally empowered and are easily influenced by better offers in the market. By leveraging business analytics companies can gain insights into customer sentiments and responses to any particular product or service. Business analytics can keep companies updated with the latest market trends and can protect against any unpredictable or volatile situation. This can also empower businesses to innovate and pre-empt their products according to customers’ needs and preferences.
Benefit #4: Makes business processes efficient
Since its advent, business analytics has improved the efficiency of businesses significantly. It has the ability to analyze clusters of data at a faster rate and with maximum accuracy. Consequently, this can help companies to achieve their business goals. Also, by leveraging various analytics tools, companies can encourage a culture of cooperative teamwork where employees can contribute to data-driven decision making.
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Benefit #5: Helps in quantifying company values
Every successful business has a set of core values that determine their success ratio. By leveraging business analytics, companies can gauge how these values are quantified and conveyed in a tangible way to drive maximum profit. Quantified values can help businesses in improving their analytical process by defining a common goal that should be followed by everyone associated with the business.
Business analytics is a blend of business and technology that takes the data-driven approach using data modeling and statistics which helps in developing new business insights. Today the importance of such analytics has manifolded because it provides an opportunity for methodical exploration of data of any organization with its focus on analysis through statistics. As an investor or an entrepreneur, it is very important for you to understand what is lying ahead and where are you driving yourself. There should be enough data available to support your visions and goals for your organization. Importance of business analytics lies in the fact that it helps you make investments when the return of investment seems good and abstain you from investing when the market is not favorable.
Here are the five reasons to explain more lucidly the importance of business analytics
Benefits of business analytics
Business analytics helps in cost control
Poor financial management and abysmal planning are two crucial factors behind the failure of businesses. Business analytics helps in updating the existing plan for business and devising a proper strategy, planning and strong financial management for the growth of the business. Importance of business analytics is acknowledged when it lay foundations to assess the flow of cash, working capital, borrowing, growth and cash base. All these together helps ultimately in controlling cost.
Quick and wise decision Making
Quick decision making is very important to have a strong foothold in the market. Its ability to interpret and predict the upcoming market challenges communicates the importance of business analytics. Business analytics helps to crack the factors that pull back the business and thus assist to rebuild the strategy.
Analyzing competitor wisely
Competitor analysis is helpful and advisable for all the businesses to succeed. Business analytics helps in gathering more information about the competitors and helps to collect who, where, when and what about them. It involves several steps like identifying competitors, decoding their goals, their strategies, assessing their strengths and weaknesses, identifying their hostility and finally whom to target and whom not to.
Effective market and customer analysis
While reviewing the performance of your business, market positioning and customer database are very important to be reviewed. Such analytics helps to review factors like new and upcoming services, changes in customer needs with time, new technology and many other factors. Customers feedback are of great importance in making improvements wherever needed in the business. The flexibility required by the business to react positively to the competition at short notice is what this analytics provides.
Business analytics has the potential to help the business in reviewing operational matters, matters of finance, human resource management, management of services and products and so on. This helps in making business more efficient and achieving growth positively.
The Business Challenge
The client, a leading apparel industry manufacturer with business operations spread across the globe, wanted to differentiate its in-store offerings and cater to the changing customer preferences. The client also wanted to understand how customer behavior is impacted by product replacements and further wanted to optimize their merchandising tactics to improve shopper loyalty. With the help of Quantzig’s merchandising analytics, the client also wanted to seek ways to gain predictive insights on the sales, returns, and pricing effectiveness and efficiently bridge the demand-supply gap with their customers.
The Solution Benefits
Quantzig’s merchandising analytics helped the apparel industry client identify optimal product combinations based on customer preferences and profile and target potential customers with the help of category planning. The engagement also helped the client reduce their spend due to better inventory planning and increased customer retention.
With the help of Quantzig’s merchandising analytics, firms in the apparel industry space can efficiently manage merchandises and maintain price competitiveness. Additionally, firms can optimize their storefront assortment, inventory, and efficient forecast demand planning across their operations.
Apparel Industry Overview
The global apparel industry includes a varied range of establishments manufacturing full-lines of ready-to-wear and custom apparels; apparel service providers, accomplishing cutting and sewing operations on materials owned by others; jobbers executing entrepreneurial functions involved in apparel manufacturing; and tailors, manufacturing tailored garments for individuals. The apparel industry is one of the most in-demand businesses due to the emergence of new trends and production of fashionable clothes. Moreover, the apparel industry plays a critical role in developing a nation’s economy in terms of creation of employment and revenue generation. The rise in disposable income, fluctuations in consumer behavior, the substantial shift toward branded apparels, and promising demographic factors have fueled the growth of the global apparel industry.
However, a few factors are expected to influence in the apparel industry. These factors include:
- Increasing competition: Today, staying ahead of the players in the apparel industry is becoming increasingly challenging for companies as the threat of new entrants is relatively high. Therefore, to remain ahead of the competition, leading establishments are facing the need to have seamless and agile processes across their business units.
- Online retailing: Consumers today are looking for convenience, authenticity, and creativity in their shopping preferences. With the online players increasing their focus on customer satisfaction, the customers are more likely to move to online retailing platforms.
Many such factors are compelling firms in the apparel industry space to leverage the use of merchandising analytics. Merchandising analytics help companies track new product performance, optimize markdowns and promotions, and improve overall profit margins. Additionally, companies can rely on merchandising analytics to enhance their merchandising effectiveness and store performance.
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Today, healthcare companies have access to more data than ever before and are seeking ways to harness the power of business analytics to improve business operations. Business analytics is widely used in the healthcare industry to reduce healthcare delivery costs, increase process and operational efficiency, and improve quality of care. Data sets in the healthcare industry are complex, and as a result, a clearly defined BI strategy becomes essential. It is also the reason why business analytics in the healthcare industry is relatively in its infancy stage.
Role of Business Intelligence in the Healthcare Industry
Optimizing Business Operations
Business analytics can be utilized in a number of ways to improve various aspects of healthcare operations. For instance, hospitals can analyze patterns in emergency-room care and consequently refine their staffing strategy to determine how many ER attendants are required during different shifts. Optimizing this number will considerably save hospitals nursing costs, which is avoidable. Business analytics can also be used to improve other hospital operations including optimizing inventory, hospital equipment, and specialized care facilities.
Hospitals and clinics can take a closer look at their suppliers by analyzing inventory data, EMR, and other metrics. Using such business intelligence tools, they can determine when they are overpaying the suppliers, underutilizing devices, or having wastage in their supply chain. By comparing pricing across various suppliers and analyzing their cost base, hospitals can better negotiate prices with their suppliers.
Improve Patient Outcomes
The healthcare industry has access to a huge amount of patient data. They can analyze patient data across patients with similar cases and analyze patterns to implement preventive care measures. They can categorize patients on the basis of the level of risk using predictive modeling to improve the care quality. For instance, IBM has developed a predictive model to accurately identify patients that are at the risk of heart disease by collecting structured and unstructured data from a large pool of patients.
Estimating Insurance Costs
Business analytics can help companies determine insurance costs and also predict and refine other medical expenses. For instance, medical institutions can map insurance provider data to patient data in order to create accurate models and healthcare plans. Since most insurance companies are moving towards outcome models; hospitals are willing to work with insurance providers to promote patient outcomes by recommending efficient treatment programs. Insurance companies are willing to lower premium payments for preventive care, as it decreases the cost of overall claims for them.
Often business intelligence is confused with business analytics, the reason being that both are superficially similar and influence the data strategy adopted by companies. Let us first understand the fundamental difference between the two, to identify how each influence the growth of a company.
Business Analytics and Business Intelligence – How are they different?
- Business analytics is used to analyze historical data to predict the future business trends; whereas, business intelligence solutions help to collect and analyze the current, actionable data that can be used by businesses to get insights for improving their business operations
- In business intelligence, the data is collected from some sources like questions, reporting, and online analytical processes. However, in business analytics, statistical and quantitative data are used for explanatory and predictive modeling
- Business intelligence is a broader concept when compared to business analytics since it uses a wide range of tools and methodologies to help companies formulate an effective data strategy.
Making A Choice Between Business Intelligence and Business Analytics
Business intelligence and business analytics serve different purposes for a business. Therefore, it is essential for companies to carefully understand which data strategy best suits their business model and adopt the same accordingly. Let us discuss a few features of business intelligence and business analytics that companies can keep in mind while making a choice:
- BI is evolving – Over the years business intelligence tools have evolved and become much more user-friendly. Earlier, companies had to depend on data scientists to use BI systems and build dashboards; however, today they are automated, which make the day-to-day use of business intelligence tools easier for companies.
- Business Analytics and Social Platforms – Social media platforms have gained exponential popularity over the years. This has forced most of the companies to mark their presence on different social media platforms. Business analytics helps companies to integrate social networking and decision-making capabilities to identify gaps in customer requirements and formulate the necessary strategies
- Faster Pace of Business Analytics – Business analytics can process data at a much faster This is highly essential considering the huge volume of data that are available for a company. Today there are various analytical tools that can be used across IT teams, which makes it easier for companies to carry out analytical tasks easily.
- BI as a Gateway to Business Analytics – Business intelligence uses basic calculations to derive strategies; whereas, business analytics utilizes various mathematical models to help formulate strategies. Though BI tools play a major role in an enterprise, their capabilities are limited when compared to analytics.
Collaborative business intelligence reinforces the meaning of the phrase “the more, the merrier.” Traditional business intelligence tools are more solitary and conclusion-based. The art of brainstorming and collaborative decision-making is largely diminishing with increasing use of business intelligence tools. Companies are now shifting their focus towards collaborative business intelligence tools like social and Web 2.0 technologies, where merging of various business intelligence software takes place to support improved data-driven decision making. Such tools allow various internal stakeholders to analyze data and exchange information and ideas much like how social networking tools, Wikipedia, SlideShare, and Skype for Business works. Such a collaboration can boost the overall business productivity in the following ways:
Eliminate Poor Business Decisions
Quite often, the process of decision-making happens outside organizational business intelligence platforms, creating a wide gap between human insight and business data. Individuals derive conclusions from the BI tools and communicate it to other team members who have not accessed the data. Collaborative business intelligence ensures that business decisions are made alongside business data to promote fact-based decision-making.
Eliminates Logistics Hurdles
Collaborative business intelligence tools eliminate the need for making costly travel and accommodation arrangements for hosting a meeting, saving significant cost and time. It also renders traditional mode of communication such as telephone, fax, and face-to-face meetings redundant. All relevant stakeholders can communicate effectively without any geographical barriers; thereby, increasing business productivity.
The implication of the word collaboration is not only limited within the internal stakeholders but also across organizational boundaries. People are eager to share BI tools that are easy to use with their clients, peers, and other contacts. The sharing of such observations, data, and insights adds to your overall data warehouse providing industry, economic, and psychographic information.
Data analytics techniques are an assortment of business intelligence, online analytical processing (OLAP), and other advanced analytics applications with a much broader focus. Data analytics services have expansive organizational benefits that help businesses drive revenue, improve operational efficiency, optimize customer experience, and develop effective marketing campaigns. Data analytics coupled with business intelligence and related advanced analytics services can work wonders in every industry, especially in the booming IT industry. With growing competition and the presence of a highly fragmented market, it is essential for the players in the IT sector to respond quickly to latest market trends to gain a competitive advantage over their competitors.
What’s Trending in The IT Industry?
The ultimate goal of any business, irrespective of the industry it operates in, is to boost business performance and drive profitability. The IT industry possesses large amounts of information – historical and real-time – from a variety of sources that can be processed and analyzed with the help of data analytics. With the help of analytics tools, the IT industry players can leverage this data to reduce costs, optimize processes, and enhance organizational operability. But what are the data analytics trends that will revamp the IT industry, you ask? Read on.
- Data analytics will help vendors in the IT industry to identify customer-centric metrics to measure and monitor performance on multiple parameters that help track brand perception and measure customer satisfaction
- With the advent of data analytics and related business intelligence services, the IT industry will direct their efforts towards ramping up their security frameworks to eliminate data security issues and help keep a check on the system vulnerabilities
- Vendors in the IT industry will increasingly depend on advanced analytics software to analyze and interpret complex data sets to simplify business processes, ensure seamless experience, and offer valuable insights
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Over the years, organizations across the medical landscape have started relying on analytics tools to deal with real-world marketing problems. With the increasing focus on customer preference, organizations have started leveraging the use of marketing analytics to meet customer expectations. In the medical landscape, marketing analytics helps marketers measure, manage, and analyze marketing performance, in turn, maximizing its effectiveness and optimizing ROI. Apart from analyzing marketing performance, marketing analytics offers strategic insights into customer preferences; thereby, helping in making better-informed business decisions. Leading manufacturers in the pharmaceutical industry can effectively devise the use of marketing analytics to predict outcomes and further segment the resources. Moreover, marketing analytics can help measure important business metrics in terms of market attribution and market effectiveness.
Quantzig’s market analytics solution helps the client efficiently gather data across all marketing channels and create a one-stop-shop to gauge information and drive marketing efforts. In addition, Quantzig’s marketing analytics also assists the client to identify the prevailing technologies in the market and allocate resources in the long run across the right channel.
As the medical device landscape is competitive with the presence of numerous competitors, a leading ECG device manufacturer was facing challenges targeting potential customers and optimizing customer reach. The ECG device manufacturer wanted to devise an effective market analytics study to penetrate across different market segments and enhance their offerings. The medical device manufacturer was also battling challenges such as pricing pressures, revenue stagnation, and intense competition – and wanted to devise robust business models to stay relevant in the medical device landscape.
Furthermore, the ECG device manufacturer wanted to focus on clinical outcomes, demonstrate value for products, and reduce ongoing support costs.
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Market Analytics Study Solution Benefits
Our extensive research from multiple sources helped the client gain a complete understanding of customers across channels and predicted customer and market behavior. The client was also able to engage customers in real-time, understand them and predict trends in customer behaviour. They also identified the features the customers were looking for and tailored the solutions.
Market Analytics Study Predictive Insights:
- Identify market trends and metrics to measure marketing success
- Understand price and promotion analytics to optimize the businesses
- Measure, manage, and analyze marketing performance and optimize return on investment
- Understand regression and evaluate and optimize marketing campaigns
- Predict outcomes and systematically allocate resources
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Big data has caught the attention of the IT industry – where every organization is striving to explore and implement big data; thus, adding value and driving profitability. Several tech and analytics giants are investing in building a robust data processing power to leverage actionable insights from big data. With the help of big data, the past data can be combined with real-time information obtained through social media, point of sale terminals, and other customer touchpoints to gain relevant and actionable insights. The benefits of big data can be leveraged by companies across industries such as retail and consumer packaged goods, food service, and telecommunication among others.
The food service industry is extremely fragmented and competitive with very low customer loyalty. Traditionally, food service companies have focused on reporting rather than analyzing the available data. The consumer trends and preferences constantly keep on changing; thereby, making big data analytics all the more essential and revolutionizing food industry practices.
Benefits of Big Data Analytics in the Food Service Industry
Big data helps in the analysis of both structured as well as unstructured data, which is gathered from various traditional and modern sources that can be used to gain valuable insights about consumer behavior, shopping trends, and identify market developments. Big data analytics offers a comprehensive industry view to food and beverage companies that can be leveraged to create a competitive advantage over the other players in the market. But what are the benefits of big data analytics in the food service industry, you ask? Read on.
- Big data analytics helps companies in the food service industry to understand customer needs and preferences by obtaining real time information about consumers, products, brand, and competitors. The food and beverage manufacturers can use these insights in new product development, product launch, reducing food wastage, and menu improvement based on customer responses
- Big data analytics can help food service companies to devise tailor made marketing campaigns and promotional activities to target their customers better. The food and beverage companies can determine optimum offers and discounts, measure the performance of their campaigns and make recommendations to customers and leverage cross selling and up selling opportunities. Data and analytics enable the organization to undertake dynamic pricing based on geographic area and customer demographics, personalizing the communication message, building customer relationships; thereby, optimizing their return on investment
- The pivotal part of the food service industry is the supply chain, operations, and its security. Big data integration enables companies to reduce waste, minimize supply chain costs, and improve the overall efficiency of the organization. Food service companies can achieve this by using barcodes, RFID tags, and sensors to track food and its journey to provide fresh food to the end user and eliminate wastage