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Importance of BA

Business analytics combines data, information technology, statistical analysis and computer models to provide decision makers with insights from various scenarios. It has wide applications in customer relationship management, financial management, marketing, supply chain management and human resources. Business analytics helps improve profitability, increase market share and revenue by facilitating better understanding of data and providing a competitive advantage. It converts available data into valuable information that can be presented in any required format.

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43 views8 pages

Importance of BA

Business analytics combines data, information technology, statistical analysis and computer models to provide decision makers with insights from various scenarios. It has wide applications in customer relationship management, financial management, marketing, supply chain management and human resources. Business analytics helps improve profitability, increase market share and revenue by facilitating better understanding of data and providing a competitive advantage. It converts available data into valuable information that can be presented in any required format.

Uploaded by

Golden Gate Colleges Main Library
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Importance of Business

Analytics
• The word analytics has come into the foreground in last decade or so. The
proliferation of the internet and information technology has made
analytics very relevant in the current age. Analytics is a field which
combines data, information technology, statistical analysis, quantitative
methods and computer-based models into one. This all are combined to
provide decision makers all the possible scenarios to make a well thought
and researched decision. The computer-based model ensures that decision
makers are able to see performance of decision under various scenarios.
Application

• Business analytics has a wide range of application from 


customer relationship management, financial management, and marketing
, supply-chain management, human-resource management, pricing and
even in sports through team game strategies.
Importance of Business Analytics

• Business analytics is a methodology or tool to make a sound


commercial decision. Hence it impacts functioning of the whole
organization. Therefore, business analytics can help improve profitability
of the business, increase market share and revenue and provide better
return to a shareholder.
• Facilitates better understanding of available primary and secondary data, which
again affect operational efficiency of several departments.
• Provides a competitive advantage to companies. In this digital age flow of
information is almost equal to all the players. It is how this information is
utilized makes the company competitive. Business analytics combines available
data with various well thought models to improve business decisions.
• Converts available data into valuable information. This information can be
presented in any required format, comfortable to the decision maker.
Scope of Business Analytics

• Business analytics has a wide range of application and usages. It can be used for
descriptive analysis in which data is utilized to understand past and present situation. This kind
of descriptive analysis is used to asses’ current market position of the company and
effectiveness of previous business decision.
• It is used for predictive analysis, which is typical used to asses’ previous business performance.
• Business analytics is also used for prescriptive analysis, which is utilized to formulate
optimization techniques for stronger business performance.
• For example, business analytics is used to determine pricing of various products in a
departmental store based past and present set of information.
Data for Analytics

• Business analytics uses data from three sources for construction of the
business model. It uses business data such as annual reports, financial
ratios, marketing research, etc. It uses the database which contains various
computer files and information coming from data analysis.
Challenges

• Business analytics can be possible only on large volume of data. It is


sometime difficult obtain large volume of data and not question its
integrity.

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