Business analytics is basically interpreting and analyzing huge sets of data and applying skills, technologies and practices to derive insights that can be used for future business planning.
It is a field that is now applied across all domains and industries.
With more and more data being generated, the demand for business analysts is increasing.
APPLICATIONS OF BUSINESS ANALYTICS:
1. FORECASTING AND INVENTORY MANAGEMENT
Business analytics helps in predicting demand for retailers at store level or sector level for inventory management purposes.
Similarly a manufacturing company might be interested in figuring out GDP figures to interpret demand and production levels accordingly.it is used to find patterns and predict likely future
2. HUMAN RESOURCE DEPARTMENT
Business analytics is used to create a profile of the most talented and successful employees by human resource department. For instance; compiling the data like universities attended or past work experience. It can make the recruiting and selection of candidates easy and effective.
Business analytics help to analyze past data to determine and predict how expensive an applicant or an asset is likely to be in the near future.
Like banks need to assess a borrower’s capability to pay before agreeing to a loan and insurance providers need to accurately determine premium charge for all assets ranging from machinery to people .
4. FRAUD DETECTION
Cyber crime is increasing every day with a data security breach, there is a risk of losing essential information to unethical hackers
Therefore fraud is now pervasive in nature and come in various forms like identity thefts, fraudulent transactions, inaccurate credit applications, false insurance claims and more.
A predictive model can therefore help companies to safeguard their information and protect it from malicious attackers.
IMPORTANCE OF BUSINESS ANALYTICS
Business analytics is the study of data through statistical and operational analysis, the formation of predictive models and trends ,
Application of optimization techniques and communication of these results to customers and business partners.
It requires quantitative methods for business modeling and decision making such as use of big data.
It uses statistical analysis to find out and explain why certain results occur. Business analytics provides support for companies in process of making tactical decisions as well as helps in automating decision making to support real time responses.
Business analytics provides a competitive advantage to companies.in this digital era , flow of information is almost equal to all players in the market .it depends on how this information is being analyzed and utilized by different companies which gives them a competitive edge over other companies.
Business analytics combines available data with various well thought models to improve business decisions.
It helps in converting available data into valuable information that can be presented in any required format.
For example, business analytics is used to determine pricing of various products in a departmental store based on past and present set of information.
Business analytics is used to make sound commercial decisions hence it impacts functioning of whole organization.
Business analytics has a wide range of applications from financial management, marketing, supply chain management, human resource management, pricing and customer relation management etc. .
Therefore business analytics can help improve profitability of a business, increase market share and revenue and provide better return to a shareholder.
This article is written by Mr. Ankit Yadav faculty of Future Wings Media that provides Business Analytics Course In Delhi and many more professional courses .