HomeBusinessA Thorough & Comprehensive Guide To Business Analytics

A Thorough & Comprehensive Guide To Business Analytics

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Perhaps you are currently working as a professional in the world of business and are looking to expand your proverbial horizons and progress within your current company?

Alternatively, maybe you are currently studying for or recently graduated from university or college and have both your heart and soul set on a career in business analytics.

Either way, continue reading for a thorough and comprehensive guide to business analytics, the fundaments of the discipline, and how you yourself can become a professional.

What Actually Is Business Analytics?

Business analytics is essentially the field of business which is solely centered around the focus on pushing practical and data-driven changes that have been thoroughly derived and are totally backed by statistics and data analysis.

Contrary to popular and probably inexperienced belief, business analytics is entirely different from business intelligence in one clear and easily distinguishable way. Business analytics is entirely focused on making educated and statistics-driven predictions by inspecting the extracted data from the business within, whereas business intelligence is focused on improving future performance and examines outside influencing factors.

Why Is Business Analytics So Important?

It is an indisputable fact that business analytics (BA) is an exceedingly important part of a company’s current operations as well as its future outlook and overall prospects.

Data-based strategic thinking, which is basically another way of describing business analytics, has a myriad of extremely beneficial advantages, including, but categorically in no way limited to:

  • BA allows a company to better understand the needs and wants of their customers
  • BA significantly increases both efficiency and productivity levels
  • BA results in substantial growth in terms of sales and profits
  • BA results in customer loyalty
  • BA reduces the level of risks and the number of risks taken from and by a business
  • BA allows the processing of more and more data
  • BA enables smaller businesses to compete with their larger rivals

Due to the complete takeover by technology across the length and breadth of every industry imaginable, this digitalization has resulted in the vast majority of businesses either becoming naturally driven towards data analysis or else being forced to do so. For business analytics to be as successful as possible, a business needs a strong and communicative manager, exceedingly effective data management, and most importantly of all, always be prepared to transform in terms of organization.

Career in business analytics

A Career In Business Analytics

If you are someone who has a genuine passion, or even obsession, with data analysis and statistics, then a career in business analytics may be incredibly suited to you. There are several different pathways on which you can learn not only the fundamental business analytics tools, but also learn how to apply them to maximize your ability to accurately assess and project the needs of the business moving forward.

Furthermore, a recent study in 2019, conducted by the GMAC, found that graduates of data analytics were projected to be the most valued and in-demand employees from recruiters in not just technological industries but consulting and energy and utility businesses as well.

Generally, a graduate of data and statistic analytics can expect to receive a starting salary of around $60,000 and can reach a maximum earning potential of around $120,000.

The process of becoming a professional business analyst is an arduous but incredibly rewarding one, and the recognized steps to a career in this sector consist of the following:

  1. Complete an undergraduate bachelor’s degree in one of the quantitative-related areas such as business studies, business management or computer science.
  2. Go on to successfully acquire a postgraduate master’s degree solely focused on business analytics
  3. Supplement both degrees with additional certifications and courses
  4. Undertake industry-specific internships and certified training programs
  5. Keep abreast of the latest programming languages, data analysis tools and software packages related to data and statistical Analysis
  6. Attend associated business networking events and conferences and start to make professional contacts

Fundamental Business Analytics Tools

As with other areas of business, especially those that deal with all things data and statistics related, the tools and software programs used within business analytics are constantly changing, improving, and evolving. With that being said, there are still standard, incredibly useful, and popular business analytic tools that are fundamental to the trade.

SWOT analytics

SWOT Analysis

SWOT analysis is perhaps the best known and most accessible business analytics tool of them all. It is essentially used to best ascertain both the internal and external factors and helps identify strengths and weaknesses and assist in minimizing dangers by identifying them.

SWOT Analysis is comprised of four differing factors:

Strengths

Identifying the advantages the specific company has over industry rivals.

Weaknesses

Identifying the areas within the specific company that need improvement or drastically changing.

Opportunities:

Identifying the bespoke opportunities the specific company has.

Threats:

Identifying the specific obstacles the company is facing.

PEST Analysis

PEST Analysis

PEST Analysis is a highly effective framework in analyzing the external environment surrounding the business and enables the discovery of outside elements that can and will affect the company, both in a positive and negative way.

PEST Analysis is also made up of four differing factors:

Political:

Studying the current political influences and overall political situation.

Economic:

Studying the global and national economical impact on the specific company.

Sociological:

Identifying the ways current societal trends can affect the specific company.

Technological:

Focusing on emerging technology and its impact on the specific company.

MOST analysis

MOST Analysis

MOST Analysis is essentially used to conduct a more internal analysis of the business’s environmental factors.

The four differing factors MOST Analysis comprises of are:

Mission:

Deciding where your business intends to focus on moving forwards.

Objectives:

Identifying and planning the specific goals to achieve your company’s specialized targets and goals.

Strategies:

Organizing how and when to best move forward and the options available to best secure success.

Tactics:

Planning and organizing how the selected options will be implemented.

With this more in-depth look at business analytics, your own business should be able to use this information to better understand performance and what you need to do to improve.

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