- 24 Nov, 2022
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Business Analytics Actionable Insights for Businesses
Business Analytics
Business Analytics is a set of disciplines and technologies for solving business by analyzing the historical data, drawing the strategies, building quantitative methods using the data driven methodologies providing the actionable insights for the business. With Business Analytics the Business procedures can be remodeled to have a more efficient and productive system.
Abraham Lincoln once Said
“IF I ONLY HAD AN HOUR TO CHOP DOWN A TREE, I WOULD SPEND THE FIRST 45 MINUTES SHARPENING MY AXE”
Business can’t be run on assumptions, it can take a leap only with analyzing the facts and figures of the business. Just like any other production or manufacturing needs research, even business requires the research and analysis to achieve success. Here the historical data acts as an asset to Business which need to studied and analyzed by skilled Business analysts to present the relevant data to the right person at the right time.
Evolution of BA
The relation between analytics and business has been in existence from long back. Any good business man before starting the business does a survey on what the society needs and on the business he need to start and what are the competitions and what extra touch he need add to stand out from the crowd. The study says the business analytics has its roots in the way back during the second world war in the operation research to conduct military operations.
With passing time, it got a lift with the introduction of technology such as Microsoft Excel and other applications making the data storage easier and with much advanced set of tools and techniques, easily the charts maps were built to understand the status of the business helping to take the better and effective decisions.
Now, with technology changing faster than time, smartness was much needed in the technical tools to present the data in the more efficient way to have a clear cut picture of the status of the business to take right decisions at right time. And there originates the Business Intelligence adding smartness into the business to make it more successful. Business Intelligence used various digital instruments, technologies, and metrics to evaluate business performance and helped companies get valuable insights. With software like Microsoft Power BI, Tableau, SAS., which include BI concepts Data Mining, Bench Marking, Descriptive Analysis to deliver actionable insights about Business.
Segments of Business Analytics
Descriptive Analytics :- It is a process of using historical and present data to draw the patterns and identify trends and relationships.
Diagnostic Analytics :- It is a process of examining the data and drilling it down to find the factors and reasons for the past and current performance of the Business.
Predictive Analytics :- Using statistics and modelling techniques to make predictions about future outcomes and performance by studying the Diagnostic Analytics.
Prescriptive Analytics :- It suggest a course of action or strategy for a profitable business
Applications of Business Analytics :- Business Analytics has a wide range of application from financial management and marketing, human resource management, customer relationship management, supply chain management, building smart strategies for sports etc.
Importance of Business Analytics :- Business analytics also allows organizations to automate their entire decision-making process, so as to deliver real-time responses when needed.
It transforms the raw data into meaningful inputs helping enabling the business to automate and optimize. This digital era is data driven. And Business Analytics combines this data with various Business Intelligence tools and help the organizations to reduce risks.
Business Analytics is a magic wand helping the organizations to change the dynamics of the business.
Scope of the Business:-
Business analytics has a wide range of scope and application. Descriptive analytics is thoroughly used by businesses to understand the market position in the current scenarios. Meanwhile, predictive and prescriptive analytics are used to find more reliable measures for businesses to propel their growth in a competitive environment.
For example, Business Analytics is used to determine pricing of various products in a departmental store based past and present set of information.
Career in Business Analytics :-
Business Analytics is one of the most important aspects of a successful organization. Businesses hold a large chunk of data that needs to be made sense of.
Business Analytics allows the organization to understand their customers better and make predictions on the growth and the market trends.
Top Career options in Business Analytics are
1. Business Analyst :- The job of Business Analyst is improving a company’s processes, products, services and systems. They must have a bird’s eye to find the areas that have a scope for improvement. They must identify what’s technologically and financially feasible options for their organization.
On an average, the Business Analyst salary ranges from 3.0 lakhs per annum to 15 lakhs per annum (Source).
2. Data Analyst :- They work with the data collected through either primary or secondary sources, making the decision-making process easier, quicker and more accurate. They have to conduct surveys and collect the information necessary for performing the analysis. They use Microsoft Access, SQL, Microsoft Excel, and many other technologies. Other essential skills for this role are Statistical Analysis, Data Management, and Reporting.
On an average, the salary of Data analyst ranges from 1.9 lakhs per annum to 11.4 lakhs per annum(Source).
3. HR Analyst :- An HR analyst (human resources analyst) uses computer applications and techniques to analyze human resources data. They gather, research, analyze, and use the data to find and share valuable business information with the management. This information helps the organization find better candidates, motivate the current employees, and fix staffing problems.
The average salary ranges from 2.9 lakhs per annum to 10.6 lakhs per annum (Source).
4. Financial Analyst:- Financial analysts have to study the recent market trends and consider the microeconomic and macroeconomic factors and the demographics to help the company make suitable investments.
They must understand how the company invests its resources and how secure those investments are. Financial analysts advise on protecting the company’s current wealth in harsh times and growing the same.
The average salary ranges from 2.1 lakh per annum to 10.1 lakhs per annum (Source).
5. Supply Chain Analyst :- Supply chain analysts have to analyze the supply chain of their organization and enhance the same. They work with other organization teams to determine if the current supply chain is optimal and how it can improve.
For example, a supply chain analyst might find faults in their organization’s current warehousing system and suggest a better one to make the operation more efficient.
The average salary range for an employee is 2.6 lakhs per annum to 12.0 lakhs per annum (Source).
6. Marketing Analyst:- A marketing analyst is responsible for helping businesses gather insights on their products and services from a marketing perspective. They analyze the marketing programs and industry trends using customer profiling, data analysis, and predictive statistics. Marketing analysts work with various departments of an organization to prepare and present findings to clients. They look for opportunities for new marketing campaigns and generate sales forecasts. Their generated insights help companies in getting new customers, retaining old clients, and boosting their revenue.
The salary ranges from 2.4 lakhs per annum to 13.1 lakhs per annum (Source).
7. Data Scientist:- A data scientist is responsible for finding valuable insights from large quantities of data to help their company make better-informed decisions. They use various processes, algorithms, and scientific methods to gather insights from unstructured and structured data.
They wrangle, clear, and filter the data to make it usable for analysis. Data scientists use machine learning algorithms and deep learning, and additional tech skills to perform their duties.
Data being a core of any industry, it becomes important to work with data that it makes logic and serves a purpose to solve business problems. Data science has applicability in almost every industry such as government, banking, manufacturing, e- commerce, education, retail, transportation, etc. The industry applicability increases the chances of the employability for a data scientist.
The average compensation for a data scientist is 10.5 lakhs per annum. The compensation ranges from 4.5 lakhs per annum to 25.2 lakhs per annum (Source).
Source for Career Options in Business Analytics :- https://www.upgrad.com/blog/top-7-career-options-in-business-analytics/