Business Analytics What is Business Analytics?? Business Analytics is the process by which businesses use statistical methods and technologies for analysing historical data in order to gain new insight and improve strategic decision-making. It can help improve profitability of the business, increase market share and revenue and provide better return to a shareholder. In other words, refers to the skills, technologies, practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning. Business analytics focuses on developing new insights and understanding of business performance based on data and statistical methods. Business analytics makes extensive use of analytical modelling and numerical analysis, including explanatory and predictive modelling, and fact-based management to drive decision making. Analytics may be used as input for human decisions or may drive fully automated decisions.
Business Analytics versus Business Intelligence Here is a useful way to differentiate business intelligence (BI) from business analytics and decisions. Analytics simplify data to amplify its value. The power of analytics is to turn huge volumes of data into a much smaller amount of information and insight. BI mainly summarizes historical data typically in table reports and graphs as a means for queries and drill downs. But reports do not simplify data nor amplify its value. They simply package up the data so it can be consumed.