bUsIness AnaLYtICs Decision support systems and into
PC software.
LEsson #2
SIGNIFICANCE AND USAGES OF BUSINESS ANALYTICS
ANALYTICS is a field which combined following into
one: To make data-driven decisions
Converts available data into valuable information
1. Data, Eliminate guesswork
2. Information technology, Get faster answer to questions
3. Statistical analysis, Get insights into customer behavior
4. Quantitative methods and Get key business metrics reports when and where
5. Computer-based models needed.
It impacts functioning of the whole organization.
This all are combined to provide decision makers all
And hence, can:
the possible scenarios to make a well thought and
➢ Improve profitability of the business
researched decision.
➢ Increase market share and revenue and
MEANING OF BUSINESS ANALYTICS ➢ Provide better return to a shareholder
➢ Reduce overall cost
Business Analytics (BA) refers to ➢ Sustain competition
➢ “The skills, technologies, practices for continuous ➢ Monitor KPIs (Key Performance Indicators)
developing new insights and understanding of and
business performance based on data and ➢ React to changing trends in real time
statistical methods.” CHALLENGES FOR BUSINESS ANALYTICS
➢ “The practice of exploration of an organization’s
data with emphasis on statistical analysis. • Business analytics depends on sufficient
Business analytics is used by companies volumes of high-quality data.
committed to data-driven decision making. • The difficulty in ensuring data quality.
➢ “The statistical analysis of the data a business has • Data warehousing require a lot more storage
acquired in order to make decisions that are based space than it did speed.
on evidence rather than a guess.” • Business analytics is becoming a tool that can
➢ “A combination of data analytics, business influence the outcome of customer interactions.
intelligence and computer programming. It is the
• Technology infrastructure and tools must be
science of analyzing data to find out patterns that
able to handle the data and Business Analytics
will be helpful in developing strategies.”
processes.
EVOLUTION OF BUSINESS ANALYTICS • Organizations should be prepared for the
changes that Business Analytics bring to
➢ Business analytics has been existence since very current business technology operations.
long time and has evolved with availability of
newer and better technologies. USERS OF BUSINESS ANALYTICS
➢ It has its roots in operation research, which was
1. Students
extensively used during World War ll. Operations
2. Business man
research was an analytical way to look at data to
3. Accountants and Auditors
conduct military operations.
4. Organization / Companies / Group of
➢ Over a period of time, this technique started
Industries / Small Firm
getting utilized for business. Here operation’s
research evolved into management science. Again, MAIN SOFTWARE USED FOR BUSINESS ANALYTICS
basis for management science remained same as
operation research in data, decision making 1. MS-EXCEL
models, etc. 2. SPSS
➢ As the economies started developing and 3. R
companies became more and more competitive, 4. SAS
management science evolved into: 5. E-VIEWS
Business intelligence,
PC software.
LEsson #2
SIGNIFICANCE AND USAGES OF BUSINESS ANALYTICS
ANALYTICS is a field which combined following into
one: To make data-driven decisions
Converts available data into valuable information
1. Data, Eliminate guesswork
2. Information technology, Get faster answer to questions
3. Statistical analysis, Get insights into customer behavior
4. Quantitative methods and Get key business metrics reports when and where
5. Computer-based models needed.
It impacts functioning of the whole organization.
This all are combined to provide decision makers all
And hence, can:
the possible scenarios to make a well thought and
➢ Improve profitability of the business
researched decision.
➢ Increase market share and revenue and
MEANING OF BUSINESS ANALYTICS ➢ Provide better return to a shareholder
➢ Reduce overall cost
Business Analytics (BA) refers to ➢ Sustain competition
➢ “The skills, technologies, practices for continuous ➢ Monitor KPIs (Key Performance Indicators)
developing new insights and understanding of and
business performance based on data and ➢ React to changing trends in real time
statistical methods.” CHALLENGES FOR BUSINESS ANALYTICS
➢ “The practice of exploration of an organization’s
data with emphasis on statistical analysis. • Business analytics depends on sufficient
Business analytics is used by companies volumes of high-quality data.
committed to data-driven decision making. • The difficulty in ensuring data quality.
➢ “The statistical analysis of the data a business has • Data warehousing require a lot more storage
acquired in order to make decisions that are based space than it did speed.
on evidence rather than a guess.” • Business analytics is becoming a tool that can
➢ “A combination of data analytics, business influence the outcome of customer interactions.
intelligence and computer programming. It is the
• Technology infrastructure and tools must be
science of analyzing data to find out patterns that
able to handle the data and Business Analytics
will be helpful in developing strategies.”
processes.
EVOLUTION OF BUSINESS ANALYTICS • Organizations should be prepared for the
changes that Business Analytics bring to
➢ Business analytics has been existence since very current business technology operations.
long time and has evolved with availability of
newer and better technologies. USERS OF BUSINESS ANALYTICS
➢ It has its roots in operation research, which was
1. Students
extensively used during World War ll. Operations
2. Business man
research was an analytical way to look at data to
3. Accountants and Auditors
conduct military operations.
4. Organization / Companies / Group of
➢ Over a period of time, this technique started
Industries / Small Firm
getting utilized for business. Here operation’s
research evolved into management science. Again, MAIN SOFTWARE USED FOR BUSINESS ANALYTICS
basis for management science remained same as
operation research in data, decision making 1. MS-EXCEL
models, etc. 2. SPSS
➢ As the economies started developing and 3. R
companies became more and more competitive, 4. SAS
management science evolved into: 5. E-VIEWS
Business intelligence,
