All businesses thrive on business strategies. Ever wondered how business strategies are being made? It’s definitely not made out of the blue and surely not according to the gut feeling. It’s the historical data, previous performances, skills and technologies applied in the past that will push towards deriving conclusion of the data.

The question that arises is; what does the term analytics means? Analytics refers to discovery and communication of meaningful patterns in data. It is extremely valuable in areas rich with recorded information. Analytics relies on the simultaneous application of statistics, computer programming and operations research to quantify performance. It often favors data visualization to communicate insight.

Let’s introduce the subject Business Analytics which in simple terms can be defined as the discovery and communication of meaningful patterns in data using tabulation and visualization techniques to communicate insights. It takes previous data into consideration to analyze, investigate and explore new insights and thus help in better planning.
Questions you need to answer:
• Why did it happen?
• Will it happen again?
• What will happen if we change x?
• What else does the data tell us that never thought to ask?
Who are the business analytics personnel?
Business analytic is a person who focuses on developing new insights and understanding of business performance based on data and statistical methods.

He makes extensive use of data, statistical and quantitative analysis, explanatory and predictive modeling and fact-based management to drive decision making.

He can answer questions like why is happening, what if these trends continue, what will happen next i.e. he predicts and what is the best that can happen i.e. he focuses on optimization.
Area of application of Business Analytics!
In today’s modern business world, business analytics plays a very crucial role. It has its roots spanning to almost every business sector.

Banks, now-a- days use data analysis to differentiate among customers based on credit risk, usage and other characteristics and then match the customer characteristics with their appropriate product offerings.

In a recent interview the world chess champion Vishwanathan Anand said that analytics skills are no longer just an extension of the IT professional, they are becoming increasingly important for businesses. In the age of increasing competition business enterprises and leaders have to constantly analyse multiple databases to predict trends that can be helpful in taking crucial business decisions.
Business Analytics
• It focuses on developing new insights and better understanding of business performance based on extensive data and various statistical methods.
• It uses data, statistical and quantitative analysis, explanatory and predictive modeling and fact-based management for improved decision making and enriched data representation.
Types of Analytics would include

Descriptive Analytics

Predictive analytics

Prescriptive analytics

Along with reporting scorecards,
clustering and past data,
it gains insight from these.
Using statistical and machine learning techniques, Predictive modeling is being made. Using optimization, simulation etc,
recommend decisions are provided.
The real challenge is data volume and size, computational power and skilled professionals.

To understand this case a little more in details let’s take an example of a Real Life Business Analytics Application:

Smart companies are using business analytics to understand the social data to anticipate the customer needs before they change. In today’s modern era almost every person on the planet is in touch with the latest technology whether it may be social, web or mobile gadgets and which play crucial role in setting the definitive trends.

These technologies are built on social data that are empowered by the consumers. Individuals are armed with search engines, like buttons and friends. Social data, that people choose to share helps in increasing the business as it gives insight into the trends followed by them.

People freely share data every day which helps the company to know and serve them according to their individual interests. And it can help companies develop services that can anticipate customer’s needs before they change instead of after the fact.

But the question comes how do the companies do all this? Answer is through business analytics. Companies collaborate with the internal network, campaigns or acquire social data through tie ups with organizations so that they can target the right customers and build the right promotion and personalised content.

According to a joint study by MIT Sloan Management Review and IBM Institute of Business Value, organizations that excel in analytics often outperform those who are just beginning to adopt analytics by a factor of three to one.

As an example LabelSneak, a UK online retailer of men’s apparel, focused its attention to social media and extracted information from tweets, photo uploads conversation between consumers on social media and mobile gadgets. It helped increase their revenues by 148%.

Hence, we could say that Business Analytics is used for:

• Exploring data to find new patterns and relationships
• Explaining why a certain result occurred
• Experimenting to test previous decisions
• Forecasting future results

In the end, business analytics has become a very important tool in the understanding of customer need and the various trends.EduPristine’s extensive Business Analytics course covers the whole course in details. To know more, quickly write an email to

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