Business analytics is the process of analyzing business data to understand and improve business operations and performance. It involves using techniques such as data mining, statistical analysis, modeling, and machine learning to analyze large amounts of data and discover patterns and trends. This information can then be used to make better business decisions, a process characterized by business intelligence (BI).
Adopting business analytics with diverse data sets is now vital for modern organizations. Leveraging better data for competitive value is crucial for maximizing future outcomes. “Analytics and business intelligence platforms are an essential part of a flexible, end-to-end architecture for integrating and analyzing diverse data sources,” as Gartner describes. With the right data, companies across all sectors can apply business analytics to improve their understanding of key business elements, such as customer experience, operational efficiencies, supply chain risks, and others.
Business analytics relies on data. Data experts first need to collect data from a variety of sources, including business transactions, social media activity, customer behavior, sensors, and many others. There are a number of methods available for data teams to collect data for analysis, the most effective of which are part of today’s modern business analytics technologies.
Once the raw data is collected, business data experts cleanse and process the desired data to remove any errors or inaccuracies. When the data is ready, business intelligence analysts assess any actionable insights and begin applying various analytical techniques to it to discover patterns and trends. The most common techniques used in business analytics include:
It is through these methods that business analytics facilitates a transition from collecting and housing data to using that data to drive future outcomes.
Over several decades, business analytics has evolved from the manual analysis of statistical data to become a multidisciplinary field that incorporates a wide range of techniques and technologies, oftentimes using BI software. As business analytics has become more sophisticated, so too have the different types of business analytics that organizations can leverage. Here are five of the most common types:
Businesses can leverage any combination of these different types of business analytics to suit their specific needs and improve business operations.
Better data-driven decisions can yield a variety of business benefits depending on how companies utilize their capabilities. Some ways business analytics brings about better business outcomes include:
There is no limit to the applications of business analytics. Data and business leaders continue to find new use cases for business analytics as new technologies emerge, so the opportunity for improvement is truly endless.
Pyramid Analytics is a leading provider of decision intelligence technologies — the next evolutionary stage of business analytics. Our software helps companies by providing them with the tools they need to make better decisions faster.
Contact us today to learn more about how we can help your business with business analytics.