Business Analytics- The Next Big Thing
Business Analytics is one sector which has been growing rapidly with organizations such as Flipkart, Amazon, Walmart, Facebook recruiting various talents across B-Schools offering specialized Business Analytics course. Most organizations used to outsource major analytics work to pure analytics firm but today, in-house analytics teams are preferred. B-Schools such as School of Inspired Leadership(SOIL) have realized the growing awareness about business analytics and buzz words like Data Mining, Big Data, Text analysis are captured by courses offered in SOIL.
Why Business Analytics?
Business Analytics helps to decode the Why, What and How questions from any organization. Huge amount of data available to organizations help to decode why part. The what part is ability to work huge amount of data, analyze and break it down into critical insights.
Business Analytics requires to define current state, desired state, identify gap between desired and current state, generate and evaluate hypothesis and last but not least, story boarding and visualization. Above processes are carried out for which different form of analytics are used such as Descriptive, Diagnostic/ Inquisitive, Predictive and Prescriptive analytics.
- Descriptive gives an overview of what has occurred in business and is presented in form of old data and takes form of reports, flowcharts etc.
- Diagnostic/Inquisitive helps in understanding why something has happened till a particular time which involves drilling into the data through traditional methods such as regression, factor analysis etc.
- Predictive Analytics part deals with what can happen in the future and involves a high analytics bent of mind which is used to predict the future of using data modelling and forecasting methods.
- Prescriptive Analytics part deals with what to do which is meant to tackle the predictions made and take the business to the top.
Proprietary software such asSAS and IBM SPSS. But most widely used software is R due to ease of availability. R and SAS are mostly used for Predictive Analysis, SQL and Teradata is suitable for smaller data pulls.