Every day is full of surprises and so is business. It is dynamic in nature and requires a constant update in terms of new technology, ideas and other aspects. Business analytics is a method of gathering the data on latest business trends, practices, technological updates etc. and applying relevant changes in our business. Entrepreneurs use this tool to gather data and use them intelligently on their businesses. It involves learning and understanding new business trends via statistical methods. Business analytics focuses on developing new and latest business insights to increase business and save costs.
Business analytics utilize data and statistics arranged in an explanatory and predictive model which shows the current and future trends along with the effects in business. There are automated business analytics software available in the market which only requires data to be entered and the software will give the results which can be deduced and used accordingly. Business analytics are used by banking, online, telecommunications and other thriving industries and sectors.
Different types of business analytics
There are various methods by which data can be collected and converted for active use. Nothing is constant and the frequency with which everything is changing these days requires an entrepreneur or company to keep up with the changes. The various methods are:
• Decisive Analytics: This utilizes human reasoning and decisive faculties. It supports visual analytics as well.
• Descriptive Analytics: This enables great insight in business through access and comparison of historical data.
• Predictive Analytics: This utilizes prediction and forecasting using statistical techniques.
• Prescriptive Analytics: This requires simulation and optimization techniques to make recommendations.
All or any of these data analytic methods can be used to gather information according to a business’ requirements.
Business Analytics is a fine technique to plan and decide upon future paths to be taken but the method is not fool-proof. It has certain drawbacks which make complete dependency impossible. The data that is to be input is quite vast and requires lots of manpower. Data entered may or may not be accurate. Since the data is quite large it requires lots of space for storage which restricts speed all the time. The data when converted into information needs to be analyzed and then put into action which may take a long time.
Business Analytics are an excellent but expensive tool to get information and decide upon the variable and dynamic aspects of one’s business. One can grow his/ her business through the use of business and data analytics.