What is Business Analytic?

Data plays an important role in defining the business goals and objectives. In this blog, I will give a brief definition of business analytics and its types and give the reasons for why businesses should get an advantage of Business analytics.

Business Analytics

According to Ngata, the definition of Business Analytics is

“The study of data through statistical and operations analysis, the formation of predictive models, application of optimization techniques, and the communication of these results to customers, business partners, and college executives. Business Analytics requires quantitative methods and evidence-based data for business modeling and decision-making; as such, Business Analytics requires the use of Big Data”.

The Main Types of Business Analytics:

• Decision Analytics: provides visual analytics to support decision-making process and to reflect reasoning.
• Descriptive Analytics: gains insight from historical data with reporting, scorecards, and clustering.
• Predictive Analytics: uses statistical and machine learning techniques to employ predictive modeling.
• Prescriptive Analytics: recommends decisions using optimization and simulation.

Companies Use Business Analytics for These Reasons:

• To evaluate organization-wide operations from sales to product development to customer service.
• To measure past performance and to guide an organization's business planning process.

Examples of Business Analytics Applications:

Fraud Analytics:

Ingram micro advisor gives a good example of how Business analytics helps the organization to detect a Fraud. “Banks and financial services firms use analytics to differentiate fraudulent interactions from legitimate business transactions.”

Marketing Analytics:

DR. JACOB SHAMA in mintigo.com illustrates how Business analytics support big companies such as Amazon, Facebook, and Netflix that are all using sophisticated algorithms to engage their customers, increase sales, and advertise efficiently.