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GS 301 Management
Prof. Victor E. Alfonso
BUSINESS ANALYTICS
Introduction
The word analytics has come into the foreground in last decade or so. The proliferation of the
internet and information technology has made analytics very relevant in the current age.
Analytics is a field which combines data, information technology, statistical analysis, quantitative
methods and computer-based models into one. These all are combined to provide decision
makers all the possible scenarios to make a well thought and researched decision. The
computer-based model ensures that decision makers are able to see performance of decision
under various scenarios.
Definition
Business analytics is a term that refers to the applications, practices, skills, and technologies
that are necessary for a complete investigation of a company's past business performance. This
discipline helps business owners and executives to obtain valuable insight about how their
particular businesses are performing, on average. It also helps them to determine how to plan
successfully for improvement. The process of business analytics focuses specifically on
understanding a company's overall business performance. Through these intricate activities,
new ideas can develop that may help to better prepare a business for future, or continued,
success against its competitors.
Application
Business analytics has a wide range of application from customer relationship
management, financial management, and marketing, supply-chain management, humanresource management, pricing and even in sports through team game strategies.
Converts available data into valuable information. This information can be presented in
any required format, comfortable to the decision maker.
Business analytics uses data from three sources for construction of the business model. It uses
business data such as annual reports, financial ratios, marketing research, etc. It uses the
database which contains various computer files and information coming from data analysis.
Challenges
Business analytics can be possible only on large volume of data. It is sometimes difficult to
obtain large volumes of data and not question its integrity.
The disadvantage of such a mass of data is that it can be difficult to distinguish the quality of the
data and the usefulness of the data to the issue at hand. Turning the overload of data into useful
information is a big part of what Business Analytics has become as computers and digitized
data has evolved.
Then there is the quality of the presentation and interpretation of the results. It doesnt matter
how sophisticated or revealing the analysis is, if the results are not presented, interpreted and
communicated in a way that is easily understood by decision makers and in a way that is
relevant to the decision under consideration then the analysis is of little value as a decision
support tool.
References:
www.managementstudyguide.com
www.wisegeek.net
Claire Cameron (Full Spectrum Leadership Inc.)