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What is Business Analytics?
Before going into the meaning and elements that make up advertising database analytics in companies or Business Analytics, you should know that it is a complex combination of practices, technologies and skills . Based on the synergies established between all these qualities, the performance of a company is examined based on its data.
So, if we are going to talk about Business Analytics and what it is specifically, we must refer to the following methodologies, which are the ones that come into play when it comes to business analytics:
Data mining
Predictive analysis
And statistical analysis
What is Business Analytics and why is it trending?
With the aim of studying, understanding and transforming data into useful information for companies when anticipating trends and predicting results.
Ultimately, the main purpose of Business Analytics is to help business organizations make better data-driven decisions .
Business Analytics vs. Data Analytics
The fact is that both are aimed at improving the operational efficiency of companies . Both are dedicated to analyzing raw data to convert it into useful information to which metrics can be applied; however, there is a difference in nuance between the two disciplines.
Business Analytics is primarily geared towards purely business uses.
Data Analytics is broader and includes both Business Intelligence and the creation of reports of all kinds. Always based on data.
Data Science vs. Data Analytics in Business
Many people tend to answer the question of what Business Analytics is by actually referring to Data Science. The confusion is understandable, since both disciplines collect data, develop models and draw conclusions.
The main difference between the two is that the term Data Science is broader and addresses issues related to the preferences of the target audience and other external factors. Business Analytics, on the other hand, is more related to issues strictly related to the business , such as costs or benefits.
To sum it up in one sentence: data science studies data and business analytics studies business data. Not to be confused with Big Data either .
Business Analytics: Examples and Types
Depending on the type of data analysis carried out in companies, the data obtained will have one effect or another on these organizations. Let's see what types of BA exist , with some examples.
Descriptive data analysis
It is used to identify patterns and trends and the data analysed is primarily historical data and relevant KPIs. Data extraction and aggregation techniques are important in this type of analysis, as they allow for a global view of what happened in the past and what is happening in the present.
An example would be the analysis of website visitors over a given period of time. In fact, one of the most common uses of descriptive analysis is the study of customer behavior.
What is Business Analytics and why is it trending?
Diagnostic analysis
This type of Business Analytics focuses on the company's past performance in order to identify the elements that influence expected trends.
Some of the techniques used in this type of analysis are: data discovery and mining, as well as correlation. The use of classification and regression algorithms is also common.
Diagnostic analysis is used, for example, to find the cause of a particular problem, such as a decrease in the number of clicks.
Predictive analysis
As its name suggests, predictive data analysis is concerned with evaluating the results obtained by a company to predict its future . It does so via Machine Learning tools and usually takes data from the descriptive analytics mentioned above.
Marketing and sales teams are the ones that most use this type of Business Analytics to predict customer behavior. They often use data extracted from social networks, among others.
Prescriptive Analytics
By analyzing data relating to business performance, this type of Business Analytics establishes how a company should behave in the future .
For example, when usage of a service declines, prescriptive analytics can suggest adjustments to the service to revitalize it.