In today’s fast-paced, technology-driven world, organizations have a mountain of data at their fingertips. As a result, there has been a rapid increase in the use of data analytics and market research across industries.
But what does this actually look like in practice? In what ways are companies utilizing business analytics to streamline processes and improve efficiency?
Below, we’ll look at what business analytics is, and then outline some of the most important functions a skilled business analyst can provide to an organization. Consider these business analytics examples as you contemplate whether this is the career path that could enable you to make the impact you’re hoping for.
The importance of business analytics
By definition, business analytics is the use of math and statistics to gather, analyze, and interpret data, collecting insights that will then inform business decisions across the corporate spectrum.
The ways a business analyst can help impart positive change within a company are vast. These analysts help solve a range of different business challenges by gathering invaluable insights and advising managers and executives on how to make more profitable decisions through reduced costs and increased revenues.
In fact, a recent study revealed that businesses that effectively utilize data analytics are five times more likely to make more effective, quicker decisions.
A separate study conducted in 2022 noted that nearly 60 percent of global enterprises employ a chief data officer (CDO), with more than 70 percent of international companies reporting plans to expand their investment in data analytics.
Companies across industries need qualified business analysts to develop strategies for entering and remaining competitive within the market. As such, demand is high; with more than 100,000 new job openings projected each year, these positions are expected to grow 11 percent by 2031.
Types of business analytics
Before we analyze some examples of business analytics in practice, it might be helpful to review the four main types of business analytics:
- Predictive analytics takes the information gathered through descriptive analytics and uses it to forecast future outcomes.
- Diagnostic analytics is used to identify the root cause of a problem.
- Descriptive analytics is the interpretation of historical data to identify trends and patterns.
- Prescriptive analytics involves the use of testing and other techniques to determine which outcome will yield the best results.
7 Important functions of business analytics
Now that you have a clearer understanding of the four types of business analytics, you can probably better comprehend the range of responsibilities you may be tasked with as a business analyst. With the right training and education, you could help organizations overcome the challenges that are holding them back.
The specialized skill set you’d gain in a Master of Science in Business Analytics (MSBA) program, for example, can enable you to perform the following business analytics functions.
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Refining the decision-making process
The use of business analytics has become known for enabling increased efficiency and accuracy when it comes to making informed business decisions. By creating in-depth reports with engaging data visualizations, business analysis can help translate raw data findings into actionable insights that can be applied right away.
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Uncovering fresh — and historical — business insights
Analyzing the massive amounts of data that exist within an organization and/or industry can serve a multitude of purposes. By examining historical data, business analysts can identify trends, both positive and negative. And, through analyzing current data and unearthing new patterns, professionals in this realm also enable more accurate forecasting of what’s to come.
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Enhancing consumer targeting
Consumers are a critical component for success in just about any industry. By using big data and predictive analytics, business analysts can enable organizations to more accurately identify which target markets would be most interested in their products or services. This, in turn, can help businesses save on marketing costs.
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Strengthening customer loyalty
Another benefit of using data analytics to accurately segment a company’s target audience is an overall increase in brand loyalty. This enables businesses to offer the right personalized deals to the right sets of consumers, for example. Business analysts can also use data insights to help streamline the customer service capabilities provided by a business, ensuring a high-quality user experience.
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Optimizing inventory
For companies that provide physical products to consumers, business analytics can help improve inventory management by providing insights from monitoring stock, trends, and competitor research. Streamlining this process helps save time, money, and a range of other valuable resources.
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Increasing sales
Among their many other functions, business analysts use insights derived from data to establish key performance indicators (KPIs) when it comes to sales and other organizational efforts. A data-driven sales strategy that includes informed targeting and well-established KPIs can help businesses realign their actionable goals, resulting in a higher return on investment.
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Streamlining internal processes
Time is also a commodity worth considering when it comes to the value of business analytics. Disjointed or over-complicated internal processes can result in lower productivity levels — a catalyst whose ripple effect can be far reaching, resulting in loss in sales, decreased consumer support, and more. Business analytics can help interconnect departments, reduce IT involvement, and generally just streamline processes, leaving time saved for more meaningful tasks.
