VALUE &IMPORTANCE OF BUSINESS ANALYTICS
Business analytics plays an important and multi-faceted role within an organization. It provides support for strategic planning, delivers tactical value, and creates competitive advantage. What is the value of business analytics? Well, first we should establish that the cornerstone of business analytics is pure analytics. A broad definition of analytics would be to consider any data-driven process that provides insight. It can encompass historical and predictive information, and ultimately, its goal is to transform data in to information that aids the organization. In order to get a more thorough understanding of business analytics, it is important to look at the three important things it provides: strategic planning, deliverance of tactical value, and creation of competitive advantage.
Importance of Business Analytics
- Business analytics is a methodology or tool to make a sound commercial decision. Hence it impacts functioning of the whole organization. Therefore, business analytics can help improve profitability of the business, increase market share and revenue and provide better return to a shareholder.
- Facilitates better understanding of available primary and secondary data, which again affect operational efficiency of several departments.
- Provides a competitive advantage to companies. In this digital age flow of information is almost equal to all the players. It is how this information is utilized makes the company competitive. Business analytics combines available data with various well thought models to improve business decisions.
- Converts available data into valuable information. This information can be presented in any required format, comfortable to the decision maker.iibmindia.in
Scope of Business Analytics
Business analytics has a wide range of application and usages. It can be used for descriptive analysis in which data is utilized to understand past and present situation. This kind of descriptive analysis is used to asses’ current market position of the company and effectiveness of previous business decision.
It is used for predictive analysis, which is typical used to asses’ previous business performance.
Business analytics is also used for prescriptive analysis, which is utilized to formulate optimization techniques for stronger business performance.
For example, business analytics is used to determine pricing of various products in a departmental store based past and present set of information.www.iibmindia.in