We are living in a “current” age. There is much talk about trends and a constantly or rapidly changing world. It is an age in which well-informed decision making is a key business activity. One of the things that have evolved with our rapidly changing world is analytics.
An article written by Prachi Juneja and reviewed by Management Study Guide Content Team (here and here) speaks of analytics as being in existence for a long time but having evolved to become popular over the past ten years. Analytics finds its current relevance in the explosion of the Internet and information technology. It involves a process that brings together company data, information technology, statistical analysis, quantitative methods and computer-based models to provide decision-makers with the tool needed to make well thought-through, informed decisions. Using a computer-based model, decision makers can see the outcomes of decisions made under various scenarios.
Business analytics is defined as “a methodology or tool to make a sound commercial decision.” In line with this definition, it has an impact on the whole organization and can result in several positive outcomes in terms of profitability, market share, revenue, and return to shareholders.
The application of business analytics encompasses many areas such as marketing, human resource management, financial management, pricing, customer relationship management and so on. It also applies to descriptive analysis which uses data to understand past and present situations, predictive analysis which assesses previous business performance, and prescriptive analysis which is used to formulate optimization techniques for stronger business performance.
If you would like to be able to manage a better business based on the application of business analytics, you may register for eCornell’s Business Analytics certificate.