Business Analytics and Big Data have become in-demand skills recently. Demand for experienced professionals has led the tech giants like Google to push students to pick this skill up. It is important to know why there is such a need to make sense of data. Data is the bloodline of organizations and facilitates the wheels of the company to run smoothly. It is an asset and organizations put out budgets to hire the best talent in Business Analytics.
A report of BARC states that organizations that use Business Analytics make 69% better decisions, have 54% more process control, and have 52% more knowledge of their customers. Statistics further state that the big data industry is set to grow to USD 274.3 billion by the year 2022. However, before making sense of these numbers, let us understand what business analytics is.
What is Business Analytics?
In simple terms, Business Analytics refers to applying statistics or quantitative methods to large sets of data. This is done to find out patterns, insights and make forecasts. The said findings are used by various departments to make informed decisions. For instance, business analytics reports are used in finance, sales, operations, etc.
There are three types of Business Analytics – descriptive, predictive, and prescriptive. The descriptive analysis uses historical data to find trends while predictive analysis finds out future events. Finally, prescriptive analysis involves performing various tests to find out the best or desired result. Business Analytics is taught through a dedicated Business Analytics degree at many colleges like at GSFC University.
Where is Business Analytics used?
Business Analytics finds use in several departments within an organization. Some departments like – Finance, Marketing, Human Resources, and Manufacturing have been described below.
Finance: Businesses have a lot of data in Finance. Analyzing the data in a proper way will help keep track of money coming in and going out. All important financial decisions like investments can be planned out with the help of business analytics.
Marketing: Business Analytics helps understand customer behavior and buying trends. Targeting a group of people and knowing how to target them to convert them into a loyal customer base is important.
Human Resource: Large organizations with a large number of employees need Business Analytics. Analyzing the performance of the employees, the number of years they worked, calculating the bonuses, etc can be done. Employee retention rate is also an important detail that business analytics can point out.
Manufacturing: In the Manufacturing process, there are a lot of individual moving parts. Keeping up to date with the stock, making sense of the target, vendors, supply chain management, operations, etc is possible with Business Analytics.
Importance of Business Analytics
Today, a BBA in Business Analytics is necessary to work in big data. However, before one starts enrolling in the program, it is essential to know the importance of business analytics.
- Business Analytics enables businesses to make data-backed informed decisions.
- There are a lot of sunk costs involved in running a business. There are costs that cannot be avoided or lessened. Business Analytics can be used to identify such costs and look for ways to reduce them.
- Business Analytics helps in creating a more robust customer experience. Knowing what customers are buying, where they are spending more time on the website, will help in knowing what to work on. Also, understanding the latest trends and likes according to the customer group can help businesses come up with strategies to better target them.
- Business Analytics plays a major role in Finance and Investments. Analytics forecasts periods of profits and losses and how to best overcome them. Using this information, organizations can plan out when and where to put their money that will get them the maximum profits.
- Customer analysis is a great way to stay ahead of the competition and also replicate their most successful strategies. Analytics can figure out the competitors’ strategies, perform a SWOT analysis, targets, etc. Accordingly, one can figure out the loopholes in the plans and accordingly modify their own plans and targets.
- Business Analytics helps in figuring out frauds in purchases, finances. With a large customer base, it would be difficult to determine which customers are more likely to default on their payments. With such customers, the company can develop a strategy on how to deal with them through proper legal means.
Business Analytics Career Options
There are several career opportunities in business analytics. One can work in different industries at different job positions. A brief description of the most popular job positions is mentioned below.
Business Analyst: A Business Analyst works for the upper management and the IT department. Documents are analyzed to find patterns and trends in the customer base and reports are generated. These reports are then used by the stockholders and higher management in improving products and services, software, etc. In India, the average Business Analyst earns INR 6,06,439 LPA.
Data Engineer: Data Engineer profile is an IT role that requires knowledge of programming language. They are typically learned in SQL and various other languages like Python to perform analytics. Their work benefits many departments so they are in constant communication with them. They work on large sets of raw data to find out patterns in them. In India, Data Engineers earn INR 8,36,443 LPA on average.
Project Manager: Another popular job profile after completing a Business Analytics program is that of a project manager. They are given an entire project to handle from start to finish and typically have a team working under them. They make sure the project goal and resources are being utilized properly and that the timeline is being stuck to. Project Managers generally work in consultancy firms and earn an average of INR 15,37,901 LPA.
Marketing Analyst: Marketing uses a lot of data analytics to read through web traffic, advertising, etc. This role does not require deep knowledge of data analytics but knowing how to use basic tools like Google Analytics will help. The average salary for this position is INR 4,83,795 LPA.