Business Analytics
Business analytics (BA) refers to the skills, technologies, practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning.[1] Business analytics focuses on developing new insights and understanding of business performance based on data and statistical methods. In contrast, business intelligence traditionally focuses on using a consistent set of metrics to both measure past performance and guide business planning, which is also based on data and statistical methods.
Business analytics makes extensive use of analytical modeling and numerical analysis, including explanatory and predictive modeling,[2] and fact-based management to drive decision making. It is therefore closely related to management science. Analytics may be used as input for human decisions or may drive fully automated decisions. Business intelligence is querying, reporting, online analytical processing (OLAP), and "alerts."
In other words, querying, reporting, OLAP, it is alert tools can answer questions such as what happened, how many, how often, where the problem is, and what actions are needed. Business analytics can answer questions like why is this happening, what if these trends continue, what will happen next (predict), and what is the best outcome that can happen (optimize).[3]
Learning Tasks
edit- (Commercial Data Harvesting) Explain which area of business analytics is dependent on Commercial Data Harvesting! What kind of information can be aggregated by the collection of distributed activities in companies organisations for decision making. Who benefits from the analysis? Could business analytics and its methods make institutions and/or companies more vulnerable?
- (Deep Learning) What does the concept "Deep Learning" mean in the context of "Big Data"? Business Analytics tries to identify patterns and trends in the available data and derive business strategies from the data! Explore the available numerical and statistical methods and play a bit with demo data understand the basic principles!
Examples of application
editIn healthcare, business analysis can be used to operate and manage clinical information systems. It can transform medical data from a bewildering array of analytical methods into useful information. Data analysis can also be used to generate contemporary reporting systems which include the patient's latest key indicators, historical trends and reference values.[4]
Types of analytics
edit- Decision analytics: supports human decisions with visual analytics that the user models to reflect reasoning.[5]
- Descriptive analytics: gains insight from historical data with reporting, scorecards, clustering etc.
- Predictive analytics: employs predictive modelling using statistical and machine learning techniques
- Prescriptive analytics: recommends decisions using optimization, simulation, etc.
Basic domains within analytics
edit- Behavioral analytics
- Cohort analysis
- Collections analytics
- Contextual data modeling - supports the human reasoning that occurs after viewing "executive dashboards" or any other visual analytics
- Cyber analytics
- Enterprise optimization
- Financial services analytics
- Fraud analytics
- Health care analytics
- Marketing analytics
- Pricing analytics
- Retail sales analytics
- Risk & Credit analytics
- Supply chain analytics
- Talent analytics
- Telecommunications
- Transportation analytics
- Customer Journey Analytics
- Market Basket Analysis
History
editAnalytics have been used in business since the management exercises were put into place by Frederick Winslow Taylor in the late 19th century. Henry Ford measured the time of each component in his newly established assembly line. But analytics began to command more attention in the late 1960s when computers were used in decision support systems. Since then, analytics have changed and formed with the development of enterprise resource planning (ERP) systems, data warehouses, and a large number of other software tools and processes.[3]
In later years the business analytics have exploded with the introduction to computers. This change has brought analytics to a whole new level and has brought about endless possibilities. As far as analytics has come in history, and what the current field of analytics is today, many people would never think that analytics started in the early 1900s with Mr. Ford himself.
Challenges
editBusiness analytics depends on sufficient volumes of high quality data. The difficulty in ensuring data quality is integrating and reconciling data across different systems, and then deciding what subsets of data to make available.[3]
Previously, analytics was considered a type of after-the-fact method of forecasting consumer behavior by examining the number of units sold in the last quarter or the last year. This type of data warehousing required a lot more storage space than it did speed. Now business analytics is becoming a tool that can influence the outcome of customer interactions.[6] When a specific customer type is considering a purchase, an analytics-enabled enterprise can modify the sales pitch to appeal to that consumer. This means the storage space for all that data must react extremely fast to provide the necessary data in real-time.
Competing on analytics
editThomas Davenport, professor of information technology and management at Babson College argues that businesses can optimize a distinct business capability via analytics and thus better compete. He identifies these characteristics of an organization that are apt to compete on analytics:[3]
- One or more senior executives who strongly advocate fact-based decision making and, specifically, analytics
- Widespread use of not only descriptive statistics, but also predictive modeling and complex optimization techniques
- Substantial use of analytics across multiple business functions or processes
- Movement toward an enterprise level approach to managing analytical tools, data, and organizational skills and capabilities
See also
editReferences
edit- ↑ Beller, Michael J.; Alan Barnett (2009-06-18). "Next Generation Business Analytics". Lightship Partners LLC. Retrieved 2009-06-20.
- ↑ Galit Schmueli and Otto Koppius. "Predictive vs. Explanatory Modeling in IS Research" (PDF). Archived from the original (PDF) on 2010-10-11.
- ↑ 3.0 3.1 3.2 3.3 Davenport, Thomas H.; Harris, Jeanne G. (2007). Competing on analytics : the new science of winning. Boston, Mass.: Harvard Business School Press. ISBN 978-1-4221-0332-6. https://archive.org/details/competingonanaly00thom.
- ↑ Ward, Michael J.; Marsolo, Keith A.; Froehle, Craig M. (2014-09-01). "Applications of business analytics in healthcare". Business Horizons 57 (5): 571–582. doi:10.1016/j.bushor.2014.06.003. ISSN 0007-6813. PMID 25429161. PMC 4242091. //www.ncbi.nlm.nih.gov/pmc/articles/PMC4242091/.
- ↑ "Analytics List". Archived from the original on 7 April 2015. Retrieved 3 April 2015.
- ↑ "Choosing the Best Storage for Business Analytics". Dell.com. Archived from the original on 2012-07-18. Retrieved 2012-06-25.
Further reading
edit- Davenport, Thomas H.; Jeanne G. Harris (March 2007). Competing on Analytics: The New Science of Winning. Harvard Business School Press. https://archive.org/details/competingonanaly00thom.
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