Business Analytics

Elements of Business Analytics

Data mining. Data mining enables organizations to uncover insights hidden in large

volumes of structured and unstructured data. It highlights correlations and patterns in the
data using statistics, machine learning and other techniques.
Text mining. This is a type of data mining used for text-based documents and
communications. It can be used to extract insight from social media posts, call center
transcripts, emails and more.
Data aggregation. Organizations often gain greater value by analyzing data that’s
combined, or aggregated, from multiple sources. This can require several steps to clean
data and resolve any consistencies. A marketing team, for example, may aggregate data
from point-of-sale systems, online platforms and customer databases to analyze customer
behavior and optimize marketing programs.
Forecasting. Forecasting helps organizations predict future events and their potential
impact. Forecasting analyzes historical business data and external trends in order to
make informed estimates about the future. It can be applied to many aspects of the
business, such as forecasting financial data, customer demand and call center
volumes.
Data visualization. Data visualizations such as charts and graphs help employees
quickly understand the results of business analytics. Effective data visualizations make
it easy for individuals to see patterns and trends, so they can use the information
when making decisions.
Business Analytics vs. Data Analytics
Data analytics is the overarching term for the process of analyzing raw data and
transforming it into metrics and insights. Business analytics is a type of data
analytics that focuses on the needs of businesses; it can be used to analyze both
internal and external data.
Business Intelligence Business Analytics
Used to report on a company’s current or Used to predict what might happen in the
past performance future and provide direction about how to
respond
Descriptive Analytics offers a look into past and current trends and patterns.
While it’s often used to look at the current state of the business, it can also help
provide some historical context for how the company reached its current
position.

Predictive Analytics is really the nexus of analytics reporting. The data mining
done here isn’t as deep but it is robust as it offers a way to visualize various
sub-groups of information as you attempt to look at specific sections of the
bigger picture. It’s also used as a baseline for prescriptive analytics reporting.

Prescriptive Analytics combines analytics modeling with probability matrices

in an attempt to forecast future trends and market patterns. Because you’ll
rely on a wide swath of information, these analytics charts will need to be
continually reviewed, and potentially adjusted, as new information is made
available.
Diagnostic analytics
A more advanced form of analytics, diagnostic analytics examines why things
happened. It focuses on identifying the causes of trends and events. Diagnostic
analytics often requires more extensive use of data science techniques than
descriptive analytics.
Business Analytics vs. Data Science
Data science is the application of machine learning, statistics and algorithms to gain
insights from structured and unstructured data. Business analytics applies data science
techniques to answer specific business questions and solve business problems.
Why Is Business Analytics Important to Businesses?

•Create a clear picture of what’s working and what isn’t in order to

improve performance.

•Facilitate faster, more-informed decision-making.

•Respond more quickly to events and better mitigate risks.

•Foster change and innovation.

•Better anticipate and plan for the unexpected.

EVOLUTION