Business Analytics: The Importance of Data in Business
In today’s data-driven economy, businesses are generating big data. In response, the need for professionals who can use that information is heightened. With the help of business analytics, businesses can better understand their customers, increase sales, and strategize.
Research shows that business analytics is a huge industry that is growing fast. Companies are investing in data analysis because it helps them make better decisions. As it becomes more and more important to companies, it will be a vital skill for a career.
Learning business analytics today can help you get a promotion in the future.
Before we get into the benefits of data analysis, let’s define what “business analytics” really means.
What Is Business Analytics?
Business analytics is the exercise of using data to make informed decisions that affect your business. It is broken down into three general methods:
Descriptive: Looking back at historical data to find trends and patterns
Predictive: Using statistics to predict the future
Prescriptive: Using testing and other techniques to determine what to do in a given scenario
Business analytics can help drive business performance. This article will discuss the importance of business analytics and how it drives profitability.
There are many methods of using business analytics to drive performance. One way is to look at how other companies have used big data insights to grow their business.
The Importance of Business Analytics
Using data to inform important business decisions is crucial. For example, Uber recently upgraded its Customer Obsession Ticket Assistant.
This tool leverages machine learning and natural language processing to help agents improve their speed and accuracy when responding to customer support tickets.
In order to streamline ticket resolution, Uber did something very smart. It ran an A/B test which is a process where you compare the outcomes of two different choices to determine which direction is best.
The company found that the new version of the product was faster, more accurate, and much better for customers. This saved Uber millions of dollars.
2. Bigger Profits
Research shows that companies that embrace data and analytics initiatives experience financial returns. They can experience a six percent increase in profits on average, which jumps to nine percent for those companies that invest for five years.
After analyzing business data, many companies are now able to realize big financial payoffs. These findings demonstrate that many firms can benefit from the growing big data and analytics market.
3. Improved Operational Efficiency
In addition to financial gains, analytics can be used to fine-tune business operations.
Several firms are now using predictive analytics to anticipate maintenance and operational issues before they become larger problems.
Learning Business Analytics
Businesses are harnessing the power of data to help them make better decisions.
By converting big data into meaningful information, you can inform the decisions of your workers and cultivate a culture of success.
McKinsey found that high-performing firms typically use business analytics to make more informed decisions.
Carefully managing your data environment can help boost your company’s chances of data success.
Additionally, companies that are data-driven have seen increases in revenue of at least 10 percent over the last three years.
Since 2013, the demand for professionals skilled in data science has skyrocketed, as indicated by research from Indeed.
If you want to develop your analytical skills, you should learn business analytics. Here are four ways you can do it.
Ways of Learning Business Analytics
1. Get an MBA
An advanced degree in business management can equip you with the skills needed to solve complex business challenges.
Business school teaches you how to gather data, analyze the relationships between variables, and communicate statistical results to colleagues.
The leadership and management skills you can gain from business school will assist you in becoming a more capable, data-driven leader.
2. Enroll in an Online Course
Learning business analytics online can be a flexible, cost-effective way for professionals to advance their careers.
Many working professionals find the opportunity to take an online course a better fit than a full-time graduate program.
3. Gain Experience
No matter what your learning style is, look for opportunities to put the skills you’ve acquired into practice. Whether that’s in a physical class or online, practical experience is the best teacher of all.
Perhaps you need a new software update to improve your website or maybe your boss needs to create some data visualizations for an important meeting with stakeholders.
Both of these are prime situations for you to flex your data skills.
4. Use your Online Network
There is no better way to find new skills than by networking. A recent survey by LinkedIn found that professionals are increasingly relying on their online network to make career decisions.
The importance of business analytics can hardly be understated. It is a skill that can be applied in any industry. Data analysis is beneficial for furthering your professional career and driving company growth.
If you are interested in learning business analytics as a skill, you can further your education in a continuing education program or gain experience by working at a company where analytics are prevalent.
About the Author
Eugen Spivak is a multi-award-winning author, business strategist, and a business coach. Eugen is the founder of the Canadian Institute of International Business, an organization focused on a better way to learn business!
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