Mostly businesses adopt this technology of business analytics, these days as it yields better ROI. Now the question arises that what is business analytics? It is the process in which business collects data and analyses it using statistical methods and new technologies. The findings of this data analysis then provide decision-making answers to the businesses which is a great tool for managing strategic level issues. Business Analytics Data Analysis & Decision Making Answers have three main types which are: descriptive analytics, predictive analytics and prescriptive analytics. Let’s briefly review them.
Descriptive analytics are details regarding what has already happened. Historical data is collected using two main methods namely data mining and data aggregation. These methods interpret the trends and patterns of the past data. This data analysis is then used to make the predictions later. It merely collects information and what trends they show i.e. they illustrate the happenings of the past. Although it is an essential step of business analytics data analysis & decision making answers can not be enough in isolation.
Predictive analytics: It is more sophisticated use of technology as it involves using statistical data to assess and anticipate possible events of the future. This method also uses data mining technique along with statistical methods and machine learning technology to determine likelihood of future happenings on the basis of past data. Forecasts are made using statistical algorithms and machine learning technology. They collect existing data and make best possible predictions based on the same. There are many uses of predictive analytics such as optimizing the marketing decision, exploring opportunities for cross selling and making improvements in business.
Prescriptive analytics: Although predictive analytics inform about what could possibly happen in the future. Prescriptive analysis focuses on what SHOULD happen in the future. It takes data from descriptive and predictive analytics and it then applies various statistical methods. Statistical algorithms then generate various probabilities of a decision making and all its possible outcomes.
Prescriptive analytics uses highly sophisticated technology to assess possible consequences of a decision on the basis of various future events and then advise on the best course of action to adopt in order to achieve business objectives.
These business analytics when used together can prove to be very effective. This is why more and more businesses are investing their resources in data analysis to find decision-making answers which are more informed and leads to improved sales, optimized business operations and increased ROI.
Hence, data is the foundation stone for data analysis in business analytics. Firms enjoy competitive edge over its rivals with the aid of this business analytics. Many businesses aim to explore opportunities that are untapped using the business analytics. Can an organization that chooses to ignore the insights and data of employees, customers and business partners expect to thrive? In the world of today it is impossible to survive let alone thrive without adopting business analytics. business analytics data analysis & decision making answers is expanding from mere generation of data aggregation analysis to using Artificial Intelligence AI that will analyze patterns and these algorithms will then make decisions for future.