Business Analytics: The Future Of Business Success

In technical terms, Business analytics is the study of data, plan, business, statistics and technology to gain some skills to predict the future of the business statistically.

To understand this topic let’s take an example, let’s assume that a man own a bank.  Now, if he wants to know what is the future of his bank in business perspective he will analyze it by some expert people of business analysis. They will tell him the risks, actions, loss, profit, market value including the steps to take forward to reach the highest peak of business.

If we broke this thing in two parts we will get two different aspect of the system.

  1.  Descriptive analysis
  2.  Perspective analysis

Now, we will take a look to both of them,

Descriptive Analysis

Which tracks key performance indicator to understand the present state of a business? Predictive analytics, which analyzes trend data to assess the likelihood of future outcomes.

Perspective Analysis

Which uses past performance to generate recommendations about how to handle similar situations in the future.

There are two aspect of the perspective analysis, basic and advance analysis,

The difference between basic analysis and advance analysis is just like this respective questions:

  1. What did happen?
  2. Why did it happen?

Obviously, to gain business value to our particular business the business analytics is done.

The whole science of creating data model, dashboards and reports based on this data is also known as “Business Intelligence“

Now, The most popular term of business analytics,

Predictive Analysis

Predictive analytics is the practice of extracting information from existing data sets in order to determine patterns and predict future outcomes and trends.  Predictive analytics does not tell you what will happen in the future. It forecasts what might happen in the future with an acceptable level of reliability, and includes what-if scenarios and risk assessment. Let’s take a look at Big data concept with predictive analysis.

For example, stores that use data from loyalty programs can analyze past buying behavior to predict the coupons or promotions a customer is most to participate in or buy in the future. Predictive analytics could also be applied to customer website browsing behaviors to deliver a personalized website experience for the customer.

Predictive Analytics and Big Data

Predictive analytics is an enabler of big data. Businesses collect vast amounts of real-time customer data and predictive analytics uses this historical data, combined with customer insight, to predict future events. Predictive analytics enable organizations to use big data (both stored and real-time) to move from a historical view to a forward-looking perspective of the customer.

For example, stores that use data from loyalty programs can analyze past buying behavior to predict the coupons or promotions a customer is most to participate in or buy in the future. Predictive analytics could also be applied to customer website browsing behaviors to deliver a personalized website experience for the customer.

For example, stores that use data from loyalty programs can analyze past buying behavior to predict the coupons or promotions a customer is most to participate in or buy in the future. Predictive analytics could also be applied to customer website browsing behaviors to deliver a personalized website experience for the customer

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