Importance of Business Analytics in 2020 | Risks, Benefits, Tools
Description: Aren’t you sure your company needs to follow the business analytics? In this article, we will prove it needs!
Importance of Business Analytics | Benefits, Use Cases, Tools
Business analytics is the technology and practice of business research. The data that a company receives as a result of analytics demonstrates its effectiveness and helps to better plan its business strategy.
In order to explain to you the whole role of business analytics, we will consider the following points:
- What is Business Analytics in Greater Detail?
- Importance of Business Analytics These Days
- Applications of Business Analytics in Different Industries
- Top Business Analytics Tools
What is Business Analytics in Greater Detail?
Business analytics is based on statistical data analysis and explanatory and predictive modeling. In this regard, the indicators obtained during the analysis are highly dependent on the quality and volume of the initial data, and receiving this data is one of the main problems of many organizations.
There are three types of business analytics:
The first describes the situation in the company. An important aspect of descriptive analytics is data visualization.
Predictive analytics in business is built on the basis of data obtained over a certain period of time and is aimed at obtaining recommendations. Such recommendations are necessary for building an effective strategy for the company’s behavior in the market.
Descriptive and predictive analytics requires the participation of a manager who can interpret the results and make the final decision based on the data obtained, while prescriptive analytics automates the decision-making process by choosing a priority model.
Importance of Business Analytics These Days
Business intelligence has been in demand in the market even before the advent of new technologies. However, with the advent of big data in business intelligence, a new era has begun.
Certain decisions are made in companies every day. Some have minimal impact on their future, and on some decisions they depend significantly. It is business analytics systems that help to evaluate all aspects and understand what conclusion needs to be made and, accordingly, what decision to make.
According to statistics, companies that use business analytics have a chance to generate more revenue. This is due to the fact that analytics helps to see problems or strengths, which later can be either eliminated or used for good.
Improved Operational Efficiency
The second type of analytics, which we talked about above, makes it possible to make a forecast based on past data. It is this forecast that helps companies navigate and understand how to avoid certain problems in the future.
Based on the three points described above, it becomes clear that the use of business analytics process significantly reduces risks both in the short and long term. Analytics helps you anticipate and neutralize what might hinder your business in the future.
Applications of Business Analytics in Different Industries
The positive business impact of analytics encourages companies to use it in virtually every sector, even in cryptocurrency.
The business analytics applications are the following:
- Human Resources
- Stock Marketing
- Medical Methodology
Business analytics can improve risk awareness, product prices, marketing campaign organization, campaign financial planning, projections, and so on.
In this area, business analytics will help the company with:
- the determination of customer creditworthiness
- the determination of the degree of risk of an insured event
- marketing and customer analysis, etc.
Analytics can be equally beneficial for manufacturing enterprises.
Data analysis helps to solve the following manufacturing issues:
- Equipment repair and replacement planning.
- Monitoring of power grid equipment.
- Sales of manufactured products.
In the case of HR, analytics can help you to solve the following tasks:
- Determine the skill level and salaries of employees according to the market.
- Identify how the various functions of departments are implemented in competing companies.
- Solve key business issues for the company.
- Explore the market of IT specialists in different countries.
When it comes to stocks or free Forex signals, analytics plays a key role here because it helps to predict the future. A fresh and accurate forecast allows you to get a good amount of money from the rise or fall of stocks.
Surprisingly, business analytics is also used successfully in medicine.
It helps predict:
- availability of medications in the hospital;
- the development of a disease based on past data;
- the effect of certain drugs on the disease, etc.
Top Business Analytics Tools
Today there are many business analytics applications for using business analytics. If you want to create a specific one for your needs, then you can contact a software development company, for example, MLSDev, which will help you make an application.
Now let’s talk about existing programs.
You can visualize data from its dashboard using drag and drop functionality. This turns data into insightful graphs and charts. It has great business opportunities in a variety of sizes, including Fortune 500 giants like Sony, ESPN, and even NASA.
QlikView is a self-service product that enables users to search and explore business analytics applications. With the QlikView data indexing engine, users can easily generate information by combining different databases within clicks.
Pentaho BI is a free software for business analysis of a company’s activities and obtaining corporate reporting, which provides the ability to build operational reports on a transactional basis without first uploading data to the warehouse, and to develop a full-fledged business intelligence system using the Mondrian OLAP server.
From enterprise reporting and data discovery to mobile performance and real-time telemetry, only MicroStrategy provides organizations with the full range of capabilities they need to transform their data into real intelligence and move towards the smart enterprise.
Bottom Line: Importance of Business Analytics in the 21st Century
In this article, we examined all the important aspects of the importance of business analytics in finance and other fields – risks, benefits of business analytics, business analytics applications, programs, and so on.
Thus, research and real-life business cases highlight the growing importance of data analytics and business intelligence in today’s world. The accumulated experience suggests: there is no need to be afraid of the new, it should be used for the good of the company and for the convenience of its customers.