Introduction
Business analytics is the art of developing precise recommendations on the basis of historical data for assisting businesses in critical decision-making. Business analytics takes inputs from artificial intelligence, machine learning as well as decision sciences for solving various business challenges. It is believed that businesses operating in the future would be heavily dependent on analytics for surviving in a competitive digital market. The preparations for future business analytics are underway in various companies operating in different cities of India. For instance, a large number of companies have started business analytics course in Bangalore for training future workforce in accordance with analytical skills.
It is important to understand and revisit business analytics as a discipline as well as a prospective career option.
The analytics trilogy
The analytics trilogy is made up of three types of subdomains. The first one is called descriptive or reporting analytics, the second one is called predictive analytics and the third is called prescriptive analytics. Descriptive analytics is related to comprehending various aspects functioning of an organization and understanding the cause-effect relationship between events and outcomes. The main objective of descriptive analytics is to consolidate different types of data sources so that effective analytics and insights can be derived. Various types of reports, queries, and alerts can be derived from a repository of data that has been formed with the help of descriptive analytics. In addition to this, visualization tools allow us a powerful representation after descriptive analytics has been carried out.
Next in line is predictive analytics. We make use of statistical techniques to develop insights from historical data. The techniques used for predictive analytics include regression, classification, and clustering algorithms. Predictive analytics is especially suitable for E-Commerce firms that target customers with related products that they search for.
In prescriptive analytics, the main goal is to analyze the current trends and describe a future roadmap for organizations based on previous data sets. Prescriptive analytics uses inputs from operations research and management studies. Prescriptive analytics is different from predictive analytics as the former prescribes the course of action as well as related directions for proceeding further with business plans. Prescriptive analytics is also called decision analytics or normative analytics.
Career options
Most of the businesses in the present times operate by harnessing the opportunities of big data research. As such, Data Analytics provides a wonderful opportunity for professionals to form a great command over the functioning of businesses. The think tank of major businesses depends on decision sciences for critical inputs regarding investment opportunities and expansion of products and services. This is where the role of business analytics comes into play. It functions in consonance with decision sciences to guide businesses in a market that is subjected to dynamic changes. It needs to be noted at this point in time that business analytics incorporates within its domain data mining, data analytics, data processing as well as data insights. Various tools are used in this regard by business analysts but the most prominent and popular among them is Google Analytics. Google Analytics provides real-time information related to the number of users that are interacting with a particular site. It also gives information related to the aspects of conversions to help in creating goals and keeping a track of them. In one word, business analytics is going to be one of the great career options in the future. This is because it is difficult to imagine businesses operating in the technical domains without the aid and advice of analytics professionals.
Research and development
The progress in business analytics is subjected to the research and development aspects in this area. Progress in business analytics can be accentuated if the availability of data sets for deriving insights is ensured at an early stage of a business. When the data sets available for business analytics are reliable and valid, the progress of business can be effectively mapped and this can lead to sustained profits in the long run. In the age of Big Data Analytics, the focus is on generating systematic and synchronized reports that can form a backbone for drafting various business strategies.
Concluding remarks
In the present times, businesses are subjected to an extreme form of competition and it is literally difficult for a business to survive if its analytical capabilities are weak. In addition to strong business analytics capabilities, a thriving business requires inputs from decision sciences if it has to leave an economic footprint in the times to come.
