Business Analytics is becoming an important tool for organizations to manage, develop and communicate information. There has been so much of advancement in this field that it becomes difficult to keep track on how this conversation is actually progressing.
Business analytics consists of performance management tools, data warehouse platform and applications. The analytical tools range from spreadsheets containing statistical function to predictive modeling applications and complex data mining. These are used to access, store, analyze, model and track information. Corporate decision makers use business analytics to gain insights and monitor business performance.
The business value
Business Analytics has been considered an essential function for organizations dealing with large amount of data. However, it can be scaled to smaller companies with fewer resources. By using business analytics, leaders quickly access the right data points to evaluate key performance and revenue indicators in formulating business strategies. It helps them track financial and operational performance, analyze results, forecast sales and plan for better business results.
How business analytics improves business performance
- Aligns resources with business strategies
- Brings cost efficiency
- Provides a single unified view to cross departmental management teams
- Accessible to a wider internal users on a timely basis
- Helps to synchronize operational and management strategy
- Helps in maintaining regulatory compliance
- Speeds up the decision making process
- Improves organization’s competitiveness
- Increases revenues
All these factors help organizations maximize profitability and customer satisfaction, and bring efficiency in operations.
Business analytics is gaining prominence as a business function which is not just related to information technology. It is now being used in different industries. Banks and insurance companies use business analytics to predict and prevent frauds. Pharmaceutical companies use it to bring new drugs to the market, stock brokers are using business analytics to make decisions and improve profits. Business analytics helps retailers to predict suitable location for stores and stock their inventory at a right place. Automakers are also mooting the idea of using business analytics to launch new vehicles in the market. By using business analytics, these industries identify most profitable customers, augment product innovation, and optimize supply chain and product pricing.
In today’s competitive business environment, organization must be ready to quickly analyze their strategic priorities with certainty. As top management relies on detailed and accurate information to make decisions, investment in business analytics would provide them with the right information at the right time. This will significantly help them predict market trends, customer behavior and staffing requirements and turn these into top-line growth or bottom-line savings.
Real-time business analytics has already helped several organizations achieve their key objectives, increase profit and improve customer relationships. In 2012, the global analytics software market grew 8.7% to USD 34.9 million. According to IDC, the market is expected to grow at a 9.7% compound annual growth rate through 2017. Organizations use this technology to change the way they do their business. It is a new way of doing business that would have been inconceivable in the past but expected to be a common practice in the coming time.
– Research Optimus