Data analytics has become one of the most important aspects of any business today. Whether you are running a tech startup or a towing service, you need data, about your products, customers, competitors, among others, to make strategic decisions to help your business stay ahead of the rest. Business analytics involves a systematic computational analysis of data. This means, applying business statistics. Statistics is all about collecting data and organizing it in clean formats that can be used to help in making better decisions.
Business Intelligence Vs Business Analytics
There are different aspects of that can greatly benefit from the use of business analytics. When we talk about business analytics, we talk about all the systems and software that are used to ensure that organizations make better decisions. These decisions can range from customer relations, supply chain management, human resource, financial planning among others. However, business get stuck in understanding the difference between business analytics and business intelligence.
Business intelligence relates to all techniques, technologies and tools that are used to provide insight about where a particular business currently stands. An example is how a business can use Excel spreadsheets for storing data on sales and operations about that business. Then you decide to use that data to determine how the business has been performing. You use the information you have on the spreadsheets, analyze it and extract any valuable insight you can get from it.
Once you have had an idea of what’s happening in your business, it’s time to apply business analytics. With business analytics, you aim at finding a reason why things are happening the way they are. Tools used in analytics are normally complex analytical instruments. Business analytics aims at looking on different factors that come into play and can be used to improve the operations and output of a business. The key difference between business intelligence and business analytics is that intelligence uses simple operations such as sum, averages, percentages etc, while analytics concentrates on complex data science operations such as regression analysis, correlation, variance, standard deviation among others.
Why Use Business Analytics
Businesses are now looking forward to add business analytics in their daily performance. One of the key benefits businesses stand to benefits by using analytics is through smart decision making. When businesses invite the use of analytics, they stand a better chance to achieve high levels of accuracy in their desired outcomes and results. This brings a significant improvement in their decision making process.
Faster decision making
In addition to improving the overall quality of decisions businesses make, you will find that these decisions are reached within a very short period of time. Making quick decisions is easy, but can be prone to errors. With business analytics, you can make these decisions with a relatively short time and still with a high level of accuracy. There are better insights through visualization and a company can stay updated. Additionally, there is more efficiency in operations and a company can achieve profitability faster.