What is Business Analytics? Common Challenges
Business analytics refers to the process of investigating and analyzing business performance using statistical analysis.
Business analytics refers to the process of investigating and analyzing business performance using statistical analysis.
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Business Analytics (BA) is a study of data to solve business problems through statistical and operational analysis aligned with a set of disciplines, technologies, and applications to derive meaningful insights. It involves a methodological exploration of data within an organization to drive critical decision-making by focusing on statistical analysis.
Data-driven businesses aggressively seek out ways to use their data as a competitive advantage and treat it as a valuable asset. Business analytics success relies on different aspects like data quality, skilled data analysts who understand the industry and technologies, and a commitment to leveraging data to uncover insights to make smarter business decisions.
There is an increasingly huge spectrum of internet-connected sources generating massive data volumes. Most often, these sources generate different types of data that must be incorporated into an analytics strategy. However, the more complex a data set, the more challenging it becomes to use it as a part of an analytics framework.
Lack of expertise & skills: The need for employees with the required data analytics skills to process business analytics data has significantly evolved. Some businesses, especially small and medium-sized businesses (SMBs), may find it challenging to find and hire candidates with the right BA expertise and skills.
Data Storage restrictions: A company must choose a storage location for its data before deciding how to process it. For instance, a data lake can be utilized to capture large data(unstructured) volumes.
Tableau, Qlikview, Sisense, Dundas BI, and Knime Analytics platform are a few Business Analytics tools that can automate advanced data analytics functions and help you in prioritizing mission-critical tasks.
Keep track of Business Metrics: Your business’s values must be measured and conveyed in such a manner that they drive more profits for your organization. Keeping track of business metrics helps you improve your analytical process because it provides a definite goal to follow. When your company keeps a major focus on KPIs that impact your business, you will be able to track business progress easily and achieve the defined goals.
Encourages data-driven decision-making: When crucial business data is easily accessible, you can make accurate decisions that drive better results. Business analytics provides your organization with meaningful and real-time data, fostering better, data-backed decisions. Additionally, business analytics makes it simpler for you to communicate your insights and plan the future with your stakeholders and employees. As a result, it encourages cooperation among all parties involved in your business, enabling you to achieve your objectives more quickly and effectively.
Provides clear insights through data visualization: Data visualization makes it easier for you to gain clear insights and make your decision-making process much more efficient. With visualized data, you can share your insights with a non-technical audience easily as their input can prove beneficial in reducing the chances of errors.