Experts in 2018 estimated that the big data and business analytics industry was worth over $171 billion. Considering the changing landscape brought about by COVID-19, that figure has likely increased since then.
You may be wondering, however; what exactly is business analytics? The answer to this question can be quite a complex one, but it’s crucial that you have some understanding of it if you want to succeed in the world of commerce.
There is quite a bit to understand about business analytics, and a few different areas to become familiar with. Once you have a core understanding, however, you’ll be able to build up your level of competence from there.
So, what are you waiting for? Read on to learn more about business analytics!
What Is Business Analytics?
Simply put, business analytics involves using software to make certain projections about the likely future performance of businesses. As software evolves, so to do the capabilities and technical approaches of business analytics experts.
What Do You Use Business Analytics For?
There are many different ways in which businesspeople can use business analytics. We’ve looked at a few key types of business analytics below.
Descriptive Analytics
Descriptive analytics uses historical data to analyze the strength of a company’s past performance. It can then leverage this to make predictions about the future, or to decide on the best course of action for managing ongoing variables.
Descriptive analytics uses techniques like data aggregation and data mining. It is useful for constructing visual aids to communicate analysis.
Diagnostic Analytics
Diagnostic analysis looks at past events and attempts to unearth the reasons why things unfolded the way they did. It uses mathematical functions like probability and outcome distribution to achieve this.
Predictive Analytics
Predictive analytics is the branch of business analytics most closely associated with future events. Predictive analytics tools use machine learning algorithms and statistical models to make forecasts about likely future outcomes.
If you’re releasing a product to market and you’d like an estimate of how well it will do within a given demographic, predictive analytics is what you need.
Unified Analytics
If this all sounds like a lot of work, you might need a tool that does everything for you. Such a piece of software is known as a unified analytics provider.
If this sounds like the right fit for you, head over to www.knowi.com to check out their range of unified analytics offerings.
Getting Your Business Analytics in Place for 2021
If you’re not well-versed in software or technical analysis, business analytics might seem a little daunting to you at first. However, once you get a grip on the basics, you’ll be doing it like a pro in no time!
If you haven’t come across business analytics before, now is the time to start reading up on it. It’s only going to become more and more important as the years go by and technology becomes an ever-greater part of our lives, both personal and commercial.
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