Definition of Business Analytics
Business analytics refers to the method of interpreting large volumes of data to gain actionable insights into the performance of a business and identify key improvement areas.
Predictive analytics, Natural Language Processing, and Machine Learning are key examples of business analytics tools.
Why is Business Analytics Important?
Business analytics has become a crucial element of every domain in the market today. Its core objective, however, remains the same: uncover market trends and patterns to make the right decisions, indulge in process improvements by formulating educated strategic plans.
What are the Types of Business Analytics?
There are four types of business analytics:
- Descriptive: Descriptive analytics is used to put the past data into perspective for better understanding the situation. It involves the analysis of historical data to understand customer behavior and then identify important key performance indicators.
- Diagnostic: It takes descriptive analytics ahead by making use of various data mining processes to discover patterns and establish correlation. The technique can be used to identify a problem’s cause and understand how different changes impact different business areas.
- Predictive: This technique uses different data modeling processes like AI and ML to predict events or trends that can happen in the future, aiding in the planning for multiple possible scenarios.
- Prescriptive: This analytics technique takes predictive analytics forward by suggesting potential actions that can be taken. Measures to optimize operations, what strategy to go ahead with, and what investments to make are some of the suggestions that prescriptive analytics offers.
What are the Benefits of Business Analytics?
Have a look at some of the most crucial benefits of business analytics for enterprises:
1. Cost Saving
Using various tools and techniques, analytics offers enhanced visibility in their processes, helping enterprises identify areas where they could save costs. As a result, operational costs are saved, and resources are optimized effectively for maximum efficiency in the process
2. Better Decision-Making
With business analytics tools, organizations can make better decisions by offering data-driven insights into competitor strategies, customer requirements, as well as other market trends. As mentioned above, enterprises can identify performance bottlenecks and then create actionable plans to achieve their goals.
3. Increased Efficiency
Business analytics makes enterprises better prepared to clear the wrinkles from their existing processes, ultimately helping in better allocation of resources. It helps free up idle time and optimizes productivity.
4. Track Business KPIs
KPIs are quantifiable parameters, responsible for evaluating the long-term performance of an enterprise and play an important role in determining the financial, strategic, and operational achievements. Business analytics track your company’s performance by collecting data and then converting it into insights that can be displayed in the form of charts and dedicated dashboards.
5. Better Customer Experience
With business analytics, companies can understand customer needs in a better manner, and understand their preferences and behavior with much more intent, helping them develop products or services that align with their expectations. Customer satisfaction is another crucial area where business analytics helps with its capabilities to better cater to their requirements.
Here’s How Vertisystem Leveraged Business Analytics to Superlative Results for a Client
A global resort operator client wanted to streamline their inventory and pricing management by predicting their occupancy rates based on historical trends to optimize their daily rate and occupancy rate averages.
Vertisystem, as one of the leading providers of data analytics services, assisted in the development of an automated learning solution to forecast demand and booking patterns by leveraging the client’s existing GCP environment. You can get more details here.
If you are looking to make use of the latest technology to understand your business, evaluate its performance, and craft impeccable strategies for great results, then contact the team of business analytics experts at Vertisystem by clicking here.