Business Analytics is a concept that encompasses the exploitation of data for actions in an organization. Pursuing large volumes of data from various sources has become possible with data management tools.
Which company doesn’t want to predict its market and consumer behaviors, right? With business analytics, this reality comes very close. Therefore, understand the subject better, following up with us on how to implement the BA in your company!
Business Analytics Applications In Business Management
Business analytics involves capturing, calculating, and interpreting data that can come from, for example, business intelligence tools.
In business management, the main difference is in the use of the information captured since BI involves more essential aspects.
MicroStrategy research has shown that data steering by companies is aimed at:
- Process improvement and cost reduction (60%);
- Directing strategies and innovations (57%);
- Monitoring and optimization of financial processes (52%).
Business analytics involves several sectors and promotes much more efficient management. Check out how the BA can be implemented in different areas of the organization:
It’s no surprise that finance holds immense amounts of data. By implementing business analytics, professionals can:
- Having greater ease in pricing ;
- Monitor market metrics for financial planning ;
- Predict sales trends based on information behavior;
- Among many others.
The BA assists HR professionals by providing highly grounded insights into employee behavior. Thus, it is possible to establish accurate turnover rates, monitor performances, and even compare arrangements with the educational institutions from which employees come.
The supply chain for industrial sectors can also benefit from business analytics. BA enables better inventory monitoring, risk management, goal tracking, and many others. With access to information on equipment productivity, the manager can also find it easier to indicate costs and predict machine wear.
The sector that is the soul of the business could be noticed in Business Analytics. Identifying consumer behavior based on data can facilitate targeting and targeting campaigns.
In addition, tracking trends and preferences of this target audience can also be updated frequently. The result is more measurable actions and strategies with a higher and predictable return.
The acronym CRM (Customer Relationship Management) represents the sector that favors customer loyalty. In Business Analytics, preference mapping can provide more profound knowledge about the company’s customer profile.
Consequently, the sector can explore more engaging approaches and expand the sales repertoire with the consumer.
Therefore, for companies that invest in loyalty, the BA can serve as a parameter in defining strategies. Thus, the organization can compare preferences and promote a superior customer experience.
Critical Steps In The Business Analytics Process
The business analytics process involves several steps ranging from analysis to model development. The process primarily aims to initiate early actions that solve possible future challenges. Below, follow each step involved in the BA and how it works.
Diagnostic Planning And Analysis
The first step to practical business analysis involves identifying a problem or need. Of course, to start the process, it is necessary to define its objectives, and for that, the company must identify and define its point of improvement. It is the moment when the team meets and also defines important indicators for analysis.
Therefore, your company will identify variables relevant to the desired solution in the diagnostic analysis. Thus, relevant data are defined, and expected trends are identified.
Therefore, the first insights can already be drawn from the identified patterns. According to the statistics’ behavior, some simple predictions already make up the analysis.
Flow Analysis And Data Origin
Having mapped and identified data relevant to the action, it is necessary to apply statistical calculations to predict more complex trends.
The data modeling in this step involves, for example, projection trees, neural networks, logistic regression, and others. The objective, therefore, is to establish an excellent predictive analysis that indicates solutions.
We must remember to consider the most influential variables and error margins. To identify them, the analyst must consider the origin of the data and deepen each of its properties.
Thus, it becomes possible to establish more precise proportions and percentages for the actions that best suit the indications.
Development Of Applications And Quantitative Models
Finally, your team can develop visual models that allow you to compare actual actions. As these are statistical proportions, business analytics will always indicate forecast possibilities.
Consequently, based on the goals set by managers, it will be possible to acquire the basis for taking action to achieve them.
Therefore, we can say that BA’s last stage involves “hands-on .”With the creation of visual models, it is now possible for managers to identify the best actions for the established goal.
Many companies adopt the method in diverse sectors since it represents tangible results. The reason is apparent: the manager sees practical information and trends from years ago based on something other than his experience or guesswork.