MARVIN N.

MANIULIT - BS ACCOUNTANCY III

APPLICATION OF DATA ANALYTICS IN BUSINESS

The International Institute of Business Analysis has defined data analytics as an

application of specific set of techniques, competencies, and procedures to perform
continuous exploration, iteration, and investigation of past and current business data, for
the purposes of obtaining insights about the business that can lead to a better decision-
making. It is generally implemented to identify actionable data. Business analyst
employed sophisticated data, quantitative analysis, and mathematical models to
maneuver solutions for the data-driven concerns.

Statistics, information systems, computer science, and researches to the business

operations can be used by analysts to widen their understanding of complex data sets
and neural networks in the segmentation of available data and identification of patterns.
Then, the gathered information can be leveraged to forecast future events related to
consumer action or market trends and to recommend processes that can drive customers
toward a desired goal.

Business analytics has several components. It includes (1) data aggregation –

collection, centralization, and cleaning of data to avoid redundancies, as well as filtering
unusable data; (2) data mining – revealing of previously unrecognized trends and patterns
and it employs several statistical techniques; (3) association and sequence identification
– knowing consumers similar actions and their sequential predictable actions; (4) text
mining – collection pf textual information from social networking sites, blog comments,
and call center scripts; (5) forecasting – identification of future events based on historical
data through analyzing processes that occur during a specific period; (6) predictive
analysis – this can be done through creating, deploying, and managing predictive scoring
models and proactively addressing events such as customer’s churns, equipment failure,
and market trends; (7) optimization – identification of best-case scenarios and next best
actions by developing and engaging simulation techniques; and, (8) data visualization –
presentation of drawn data through highly interactive graphics or illustrations.

Many businesses have now been utilizing data analytics to optimize their
performance and improve their sales. Its implementation into the business model signifies
that companies can reduce costs by identifying a more efficient ways of doing business
and by storing large amount of data. Moreover, they can also use this to make sound
decisions and help analyze customer trends and satisfaction that lead to a more
competitive products and services. Furthermore, it has become an important business
aspect for every organizations towards achieving their objectives.
References:

https://www.iiba.org/standards-and-resources/business-data-analytics/
https://www.microstrategy.com/us/resources/introductory-guides/business-analytics-everything-you-need-to-know
https://www.investopedia.com/terms/d/data-analytics.asp