What is Business Analytics? Introduction to Business Analytics.

What Is a Business Analyst?



Business Analytics is one of the most growing fields in the modern era. The scope of business analysis is getting wider and wider due to the deadly combination of statistics and computer science. This development of business analytics has resulted in a wide variety of career opportunities. Therefore it is very important to understand the meaning and importance of business analytics.

Before knowing about Business Analytics First know about analytics

In this introduction to Business Analytics, we have to first understand the term 'analytics'. Now, analytics generally refers to the science of manipulating data by applying various models and statistical formulas to find insights. These insights are the major factors that help us to solve various problems.

Definition of Business Analytics:

When we work with data to find insights and solve business related problems, we are actually doing business analytics. Tools used for analytics can range from spreadsheets to predictive analytics for complex business problems. The process involves using these tools to create patterns and identify relationships.

Tasks and duties can include: 

  • A simple example of business analytics would be to work with data to find out what would be the optimal price point for a product a company would launch. When doing this research, several factors need to be taken into account before arriving at a solution.
  • how many and which customers are likely to unsubscribe
  • and working with available data to detect and evaluateIs doing how and why the tastes and preferences of customers who regularly visit a particular restaurant change.

Components of Business Analytics

·         Data Storage- Data is stored by the computer in such a way that it can be used further in the future. The processing of this data using storage devices is known as data storage. Object storage, block storage, etc. are some of the storage products and services.

·         Data Visualization- It is the process of graphically drawing information or insights drawn through the analysis of data. Data visualization eases the communication of output to management in simple words.

·         Insights- Insights are the outputs and conclusions drawn from the analysis of data by applying business analysis techniques and tools.

·         Data Security - One of the most important components of business analytics is data security. This includes monitoring and identifying malicious activities in the security network. Real-time data and predictive modeling techniques are used to identify vulnerabilities in systems.

Types of Business Analytics

There are different types of analytics that are performed on a daily basis in many companies. Let us understand each of them in this section.

Descriptive Analytics

Whenever we're trying to answer questions like "what were the sales figures last year" or: what's happened in the past, we're basically doing descriptive analysis. In descriptive analysis, we describe or summarize past data and transform it into easily understandable forms, such as charts or graphs.

An example would be finding out what percentage of leads we could not convert and the potential amount of business we lost because of it.

 

Predictive Analytics

Predictive Analytics is exactly what it sounds like. This is the side of business analytics where predictions are made about the future event. An example of predictive analysis is calculating expected sales figures for the upcoming fiscal year. Predictive analysis is primarily used to establish expectations and follow appropriate procedures and measures to meet those expectations.

Prescriptive Analytics

In the case of prescriptive analytics, we use simulations, data modeling and optimization of algorithms to find answers to questions such as "what needs to be done". It is used to provide solutions and to identify the possible consequences of those solutions. This area of ​​business analysis has come to the fore recently and is on a huge growth as it gives many solutions to the problems faced by businesses, along with their potential effectiveness. Suppose plan A fails or there are not enough resources to execute it, then plan B, plan C, etc. are still at hand.

 

The Business Analytics Process

Like anything else in business, there is a process involved in business analysis. Business analysis needs to be systematic, systematic and incorporate step-by-step actions to achieve the most optimized results in the end with the least discrepancies.

 

Now, let's dive into the steps involved in Business Analytics:

  • Business Problem Framing: In this step, we basically figure out what business problem we are trying to solve, for example, when we want to find out why the supply chain is not as effective as it should be or we Why are you losing sales? This discussion usually takes place with stakeholders when they realize an inefficiency in any part of the business.
  • Analytics Problem Framing:Once we have the description of the problem, we need to think ahead about how the analysis can be done for that business analytics problem. Here, we look for metrics and specific points that we need to analyze.
  • Data: The moment we identify the problem in terms of the need for analysis, the next thing we need is the data that needs to be analyzed. In this step, we not only get the data from different data sources but we also clear the data; If the raw data is corrupt or has incorrect values, we fix those problems and convert the data into a usable form.
  • Methodology selection and model building: Once the data is ready, the tricky part begins. At this stage, we need to determine which methods are to be used and which metrics are important. If necessary, the team will have to build custom models to explore specific ways that are suited to the respective tasks. Oftentimes, the type of data we have also determines the methodology that can be used to conduct business analysis. Most organizations create multiple models and compare them based on critically important metrics.
  • Deployment: Post the statistical methods of selecting the model for the solution and analyzing the data, the next thing we need to do is test the solution in a real-time scenario. For that, we deploy the model to the data and look for different types of insights. Based on the metrics and data highlights, we need to decide on the optimal strategy to solve our problem and implement the solution effectively. Even in this phase of business analytics, we will compare the expected output with the real-time output. Later, based on this, we will decide whether the solution needs to be replicated and modified or we can proceed with the implementation of the same.

Applications of Business Analytics

Business analytics is a very useful process which is used in various fields. Be it the IT sector, the healthcare sector, or any other type of business, business analysis can help them make a difference. Therefore, there are a huge number of applications for business analytics. Some notable examples of business analysis are:

  • Optimizing supply chains
  • Forecasting Revenue Indicating
  • employee reasons for leaving
  • Fraud Detection
  • Recommendation System
  • the number of cabs required in an area
  • Price point comparison

Business Analytics v/s Data Analytics

Business Analytics Means to conduct data analysis to draw business insights and offer solutions to complex business problems. This specifically involves dealing with business insights, as opposed to data analytics.

 

Data analytics refers to the analysis of already existing data to draw conclusions about the information contained in the data. It is a broad concept and also includes business analytics.

Business Analytics v/s Data Science Data Science

refers to the performance of data analysis using advanced statistical methods and accessing insights to make data-driven decisions. This is the advanced stage of business analytics. However, both the roles differ based on the activities and tasks involved in making business decisions. Both play a very important role in understanding the fundamental difference inherent in Business Analytics and Data Science.

Data Science explores potential solutions and generally aims at long-term problems and business development. In contrast, business analysis aims at solving short-term and specific business problems.

Career Scope of Business Analytics

As we mentioned above, there are many different areas to recruit business analytics professionals. Hence, the career scope of business analytics is very broad. Business analytics professionals are hired for a variety of job roles. Their responsibilities may vary slightly depending on their designation and the area in which their organization operates, but the end goal is the same – solving business problems.

Some Important Roles in Business Analytics

 

Designation

Description

Business Analyst

Developing visualizations, building APIs, and creating and working with dashboards

Data Analyst

Analyzing data trends and finding valuable insights and metrics

Decision Analytics Professional

Working with data and client requirements to find out the optimum path for a solution and its implementation

Business Consultant

Working with partner clients from planning to implementation phases

 

Skills Required to Enter the Field of Business Analytics

  • SQL (mandatory)
  • MS Excel
  • Statistical expertise
  • Strong analytical skills
  • Business acumen
  • Python coding (preferred by a lot of companies)
  • Proficiency in R (preferred by a lot of companies)
  • Data visualization skills (preferably in Tableau and Power BI)

Business Analytics Salaries

  • The average salary in the Business Analytics field is ₹8 LPA. However, it may vary based on the sector and the experience and skills of the candidates.
  • As they go higher in their career, these professionals can easily touch a point of ₹20 LPA with 6–7 years of experience.
  • Candidates with Python and R skills earn higher average salaries than those who do not have these skills.
  • In the United States, the average salary of a Business Analytics professional is around US$80,000 per year.









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