bUsIness AnaLYtICs
LEsson #2
ANALYTICS is a field which combined following into
one:
1. Data,
2. Information technology,
3. Statistical analysis,
4. Quantitative methods and
5. Computer-based models
This all are combined to provide decision makers all
the possible scenarios to make a well thought and
researched decision.
MEANING OF BUSINESS ANALYTICS
Business Analytics (BA) refers to
➢ “The skills, technologies, practices for continuous
developing new insights and understanding of
business performance based on data and
statistical methods.”
➢ “The practice of exploration of an organization’s
data with emphasis on statistical analysis.
Business analytics is used by companies
committed to data-driven decision making.
➢ “The statistical analysis of the data a business has
acquired in order to make decisions that are based
on evidence rather than a guess.”
➢ “A combination of data analytics, business
intelligence and computer programming. It is the
science of analyzing data to find out patterns that
will be helpful in developing strategies.”
EVOLUTION OF BUSINESS ANALYTICS
➢ Business analytics has been existence since very
long time and has evolved with availability of
newer and better technologies.
➢ It has its roots in operation research, which was
extensively used during World War ll. Operations
research was an analytical way to look at data to
conduct military operations.
➢ Over a period of time, this technique started
getting utilized for business. Here operation’s
research evolved into management science. Again,
basis for management science remained same as
operation research in data, decision making
models, etc.
➢ As the economies started developing and
companies became more and more competitive,
management science evolved into:
Business intelligence,
Decision support systems and into
PC software.
SIGNIFICANCE AND USAGES OF BUSINESS ANALYTICS
To make data-driven decisions
Converts available data into valuable information
Eliminate guesswork
Get faster answer to questions
Get insights into customer behavior
Get key business metrics reports when and where
needed.
It impacts functioning of the whole organization.
And hence, can:
➢ Improve profitability of the business
➢ Increase market share and revenue and
➢ Provide better return to a shareholder
➢ Reduce overall cost
➢ Sustain competition
➢ Monitor KPIs (Key Performance Indicators)
and
➢ React to changing trends in real time
CHALLENGES FOR BUSINESS ANALYTICS
• Business analytics depends on sufficient
volumes of high-quality data.
• The difficulty in ensuring data quality.
• Data warehousing require a lot more storage
space than it did speed.
• Business analytics is becoming a tool that can
influence the outcome of customer interactions.
• Technology infrastructure and tools must be
able to handle the data and Business Analytics
processes.
• Organizations should be prepared for the
changes that Business Analytics bring to
current business technology operations.
USERS OF BUSINESS ANALYTICS
1. Students
2. Business man
3. Accountants and Auditors
4. Organization / Companies / Group of
Industries / Small Firm
MAIN SOFTWARE USED FOR BUSINESS ANALYTICS
1. MS-EXCEL
2. SPSS
3. R
4. SAS
5. E-VIEWS
