What Is Business Analytics?

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By Dzhingarov

Business analytics is the practice of using data and statistical analysis to investigate and analyze a company’s performance, provide insights and drive recommendations to improve performance.

Business analytics professionals use data to improve operations and marketing, increase sales and customer loyalty, and reduce costs. They help companies transform raw data into actionable information that can be used to optimize every facet of their organization.

Business Intelligence

Business intelligence is a term that refers to the process of gathering data, analyzing it, and presenting it in easy-to-understand visual formats. This includes reporting, online analytical processing (OLAP), analytics, dashboard development, and performance benchmarking.

Business Intelligence tools are used by organizations of all sizes to analyze and visualize data to support decisions, operations, and marketing strategies. They also help predict future trends and plan for potential problems.

In addition, BI systems integrate with other software systems to bring critical data together from disparate systems. This helps companies make better use of their data resources and avoid data silos, which often prevent access to the data they need for analysis.

Businesses that use business intelligence and business analytics effectively can gain a competitive advantage over those that do not. By uncovering patterns in data and implementing changes to their operations based on insights from this information, businesses can grow faster and reach their full potential.

Predictive Analytics

Predictive analytics uses data mining, statistical modeling and machine learning to predict future outcomes. It is a powerful tool that can be used to identify trends, risks and opportunities, improve operations, and set strategies for business success.

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When you want to use predictive analytics, start by collecting data on customers, employees and other aspects of your business. Then, plug that information into a model that can predict future trends and problems based on the patterns in the past.

You can create models in a number of different ways, including decision trees and neural networks. Regression is another common technique for creating predictive models.

Predictive analytics can help you reduce product churn and optimize customer experience by predicting when customers will stop using your products or services. This can result in big savings and revenue for your business.

Data Science

Data science is the process of collecting, organizing, analyzing and interpreting large amounts of data to extract useful information. It can help businesses increase operational efficiency, identify new business opportunities and improve marketing and sales programs.

The work of data scientists is highly specialized and often involves complex algorithms and computer programming. They use their knowledge of math, statistics, data mining and machine learning to create tools for analyzing and visualizing data, creating reports and recommendations to business stakeholders.

In many cases, data scientists develop models that run against a company’s existing data to make predictive decisions. These models can help businesses reduce fraud, boost financial trading, optimize manufacturing uptime, increase supply chain performance and provide stronger cybersecurity protections.

However, managing deployments of analytical models and quantifying business value can be a challenge. It’s important to choose a platform that empowers data scientists to spin up environments instantly, track their work and deploy models into production.

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Data Visualization

Data visualization is a method of turning raw data into visual representations that people can easily understand. This makes it easier to extract and interpret business information that may have otherwise been too complex for non-technical users to grasp.

Human cognition is effective at processing visuals, and 90% of information transmitted to the brain is visual, so it’s crucial to use tools that help business professionals convey information visually.

The right data visualization can be a powerful tool for business analytics, helping professionals make sense of big data and explain results to their teams and stakeholders. It can also make it much easier to act on findings quickly, which will boost productivity and efficiency.

There are many types of data visualizations, each with its own unique features and purpose. However, there are some general categories that you can use to determine the best type for your needs.