What is business analytics? Business analytics is a broad field which drives concrete, data-based changes in an organization. The analytical side requires a high degree of technical expertise and the actual business component requires a solid foundation in computer science and statistics.
Analytics is a broader field than its obvious cousin, management analytics, which focuses on the strategic and operational aspects of business. In contrast, business analytics refers to the use of information systems to produce results and make decisions from the collected data. It can be used for product design, development, financial management and sales. In order to understand what is business analytics, it is important to recognize how it differs from traditional management analytics.
Analytics encompasses many areas including decision-making, marketing, human resource management, organizational development and the production function. As a general rule, organizations use analytics to create action plans based on their findings and then evaluate those plans. They use this data to develop strategies and then implement those strategies. Although some forms of analytics are more focused on the process rather than the end result, others involve the production function itself.
Business analytics may include software applications and specialized knowledge. There are many different types of software applications in the market today that can aid in the application and creation of an analytics plan.
An example of a software application would be ERP, which stands for enterprise resource planning. ERP is the backbone of many organizations because of its ability to manage all the functions within an organization. When applied to business, this software allows the organization to generate and maintain reports, generate and maintain customer relationship information, generate sales projections and create strategic plans. Some companies use the software to track and analyze customer loyalty, market trends and to create marketing strategies.
Business analysts who specialize in software applications are often responsible for developing and maintaining the software itself. These professionals are often also responsible for designing and implementing any other solutions that are necessary. The applications must be reliable, flexible and adaptable to changes and be able to work with new software applications and technologies. Software applications are also need to have a user-friendly interface so that users can conduct business without much trouble.
Human resource management is another area of business analytics that requires a strong foundation. Human resources are the lifeblood of a company’s productivity and growth. These individuals play a pivotal role in making sure that everyone is on track and doing things according to plan. When the employees are properly managed, the entire organization can run efficiently and grow to its fullest potential.
Business analytics does not only apply to a company’s operations. Business analytics also can be applied to the management of a company to determine what the best practices are and how to improve upon them. When applied to a company’s personnel, business analytics can be applied to determine who needs the most training, who should be promoted, who needs to be let go and what training or other training may need to be given.
Some of the main areas of business analytics that should be addressed are the marketing department, the human resource department and even the boardroom. All of these areas have an important role to play in a company’s success and in making sure that each and every person are on track and doing things correctly.
Data Mining. The purpose of this kind of software is to collect, analyze and process all the data from all angles. The data could range from financial records to consumer behavior and from the various aspects of a company’s operations. The software must be able to sort through this information and identify patterns and make decisions based on the data collected.
Marketing. Business analytics can be used by companies to study and measure their marketing campaigns and determine whether the campaigns were effective and if there are areas for improvement. The software may also help with tracking which marketing campaigns are bringing in the most business and which ones are not as effective as they could be.
The human resource department is another area where software applications are very useful. Human resource management software can be used to track and analyze the performance of the company’s employees. It will help in analyzing the skills and abilities of each employee and identify any areas in which these employees need improvement. This type of software can help with training new employees, hiring and training employees and in terms of benefits.