Anindita Maity

What is Business Analytics?

Now a days the term “Business Analytics” is commonly used in our daily life. The meaning of business analytics is extraction of meaningful information from the data to improve the position of the business. Business analytics is not only about statistics, business intelligence is also included in it. Through analytics we predict or forecast what is going to happen and what should we do about it. This is done so that we can maximize wealth in future. For example, every aspect of the banking operations like allowance of loan, credit cards etc. is done by analytics.If we can identify a person who may leave the organization, we can take some corrective action to avoid this, of course if we want to do so. We can do all these things through analytics. 

Who is a Business Analyst?

A business analyst is someone who analyzes, discovers and communicates the patterns of data to the people engaged in effective decision making. 

Business analytics has three pillars. These are –

1. Business Intelligence.

2. Statistical Analysis

3. Tools 

Business Intelligence:

Business intelligence method is used to understand how the business will go on based on previous records. Let us assume, a person comes to a bank for a loan. Now it can be predicted by using the business intelligence method whether that person will return the loan or not. 

Statistical Analysis:

In statistical analysis we can predict about future performance of a product by applying statistical algorithms to previous records.

Suppose we have two kinds of data. First, The people who return the loan to the bank and second, who did not return. If a new person comes to the bank for a loan we can easily judge on the basis of his or her characteristics whether that person will return the loan to the bank or not. For that we need some statistical analysis. 

Tools:

To analyze the data we need help of some statistical tools. There are various kinds of statistical tools like SAS, R, STATA, SPSS etc. 

Which company work on analytics?

There are two types of companies which work on analytics. The first type is captive company and the second type is a third party vendor.Captive companies are those who analyze their own offshore entity while taking the work and closing operational tie ups with the parent company.Third party vendor is any organization existing outside the firm that provides services and analyze the company’s system. 

Importance of Business Analytics:

Business Analytics is a technique which helps to reach the company’s goal and vision. To understand customer’s behavior we need to do some analysis and try to find out what they want. With poor financial management strategy or lack of planning, business has to fail. To build a successful business we need proper planning and financial management strategy. To take faster and better decision we need to do analysis. Business Analysis technique can convert data into valuable information. 

Author’s Profile:

Ms. Anindita Maity has completed her masters in economics with specialization in econometrics from Vidyasagar University, West Bengal. At present she is engaged in business analytics with IVY Professional School, Delhi. She had research exposure in study of trends and inequality in backward regions.An avid reader, Ms. Maity’s interest lies in paper quilling and sports.