Definition:
Business analytics is the method of processing and studying collected business data using different methods and models to convert data to insights useful for business. The main goal of business analytics is to understand the important data and use them to solve various problems to increase the revenue generated as well as productivity.
Business analytics is a subset of business intelligence. Business intelligence focuses on a descriptive approach for strategies and developing tools for processing data, whereas business analytics focuses on prescriptive approaches by developing methods, predictions and recommendations to increase output.
Components:
Mining of data: Creating models to understand the enormous amounts of data. It uses many methods to achieve the main goals like clarification for data sorting, regression for predicting patterns and clustering to make patterns from the data.
Aggregation of data: Clearing of data to remove duplicate and incomplete data which is unusable.
Identifying association and sequence: Creating and identifying data for any association (relation of one data pattern to the other) and sequences (one data pattern followed by another pattern).
Mining of text: Businesses collect data in the form of text through various sources like social media, blogs etc. to create in-demand products and improve upon their customer services.
Forecasting: It deals with processing and analyzing of data to identify patterns to predict future events.
Optimization: Understanding different actions to best perform on various scenarios like maintaining stocks, shipping details, pricing during sale times and promotions.
Predictive analysis: Understanding and predicting various events like product failure, market trends, and customer reactions.
Visualization of data: Data can be analyzed through various methods of presentations.
Types:
• Descriptive: It aims to describe the existing data to identify strengths and weaknesses to various stakeholders of the business to understand customer behavior. It basically aims to answer the “what” question and is the simplest form of analysis.
• Diagnostic: It basically aims to answer the “how” and “why” questions for the data and focuses on the factors which determine the trends. It studies outcomes to understand the occurrences of various events. Its most common physical product is a businessdashboard.
• Predictive: It aims to predict and forecast the occurrences of events in the future using different models and techniques, enabling a higher accuracy of prediction. The common application is sentiment analysis, which is the analysis of available data for prediction. The most common physical product is a detailed report.
• Prescriptive: It aims to provide recommendations for the best action that can be taken to increase and achieve better outputs and desirable results. The most common use is the creation of recommendation engines. The most common physical product is focused recommendations.
Challenges:
• Distrust among executives for its implementation
• Poor collaboration among cross-sections of departments
• Lack of commitment as this requires some amount of time for results to appear
• Failure can be due to lack or low quality of data available
Careers:
This requires bachelors/master’s degree in business analytics, marketing, statistics, data science or a related field.
• Management analyst or consultant: Ensures efficient running of business operations of an organization
• Data analyst or scientist: For collection and analysis of data to gain useful insights for betterment of the organization
• Market research analyst: Gathering insights from data for marketing
• Big data analytics specialist: - Using the latest technology to tackle problems
• Marketing: Developing marketing strategies
• Operations research analyst: Analyzing operational data
Trends:
• Internet of things
• Artificial intelligence
• Neural network
• Micro-segmentation
• Big data
• Deep learning
Enroll in a business analytics course from ExcelR to know more.

Business Information-
ExcelR - Data Science, Data Analytics Course Training in Pune

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