Business Analytics: the key to smart decisions

The great market competitiveness requires companies to make quick and accurate decisions, hence the need to use Business Analytics tools.

This process, based on statistical techniques and artificial intelligence systems, studies historical data and is responsible for making predictions that facilitate intelligent decision-making. Organizations must anticipate to predict trends and stand out from the competition.

What is Business Analytics?

Business Analytics, or business analysis, is the practice of using your company's data to anticipate trends and results. It includes data mining, statistical analysis and predictive modeling for decision making.

On the other hand, data analytics is the technical process of extracting data, cleaning, transforming and building systems to manage it.

Business Analytics serves us to answer the "why" question to predict more informed possible outcomes.

Difference between Business Intelligence and Business Analytics

The terms Business Analytics and Business Intelligence are seen as synonyms, as both are about business efficiency; however, they have some important differences, including how information is collected and how it is used.

Business Intelligence analyzes how the company has been growing and the objectives it has achieved so far. This information is the basis for knowing the points of improvement, correcting procedures and reviewing the implemented strategy.

The information analyzed is used to improve processes and improve performance.

Now, Business Analytics uses statistical data to develop predictive models that seek to increase the organization's competitiveness and productivity.

Big Data technology, combined with AI, uses algorithms to predict scenarios, and based on probability, it generates projections with minimal error margins.

Both BI and BA processes help to enhance the validity of the data.

Types of Business Analytics

The goal of Business Analytics is operational efficiency, although there are some types whose way of working is different in terms of interpretation and data management. Let's break down each of them:

1. descriptive analytics.

This is an interpretation of data over time that determines KPIs and applies data mining techniques. It also identifies trends and patterns to visualize the current situation of the company.

This type of Business Analytics is used to know in-depth customer behavior and develop accurate marketing strategies.

2. Diagnostic analysis

It concentrates on assessing the company's performance over a period by utilizing algorithms to dissect and cross-reference data, which helps identify the causes of certain events.

These are used to assess the probability of these situations happening again and take immediate action.

3. Predictive Analytics

This type of Business Analytics is responsible for using statistical models and machine learning techniques to forecast future results. Probability models can be created to help sales and marketing teams.

4. Prescriptive Analytics

Study performance data to recommend specific actions and generate results.

How Business Analytics works

Business Analytics works by extracting and processing huge amounts of data and determining which data is useful to increase revenue, efficiency and productivity in the organization.

The Business Analytics process involves the following stages:

Data consolidation and organization

In this phase, the objective is to gather as much data as possible from internal and external sources. This stage ensures that the information is cleaned and organized efficiently, laying the groundwork for subsequent analysis.

Pattern analysis through data mining

Using statistical techniques and machine learning algorithms, data mining classifies large volumes of data to find hidden relationships and patterns to understand customer behavior and business operations.

Identification and analysis of predictive sequences

Here recurring patterns in user actions or operations are identified, allowing to anticipate future events based on sequences of past behaviors.

Unstructured text processing and analysis

Through text mining, data is collected from unstructured sources, such as social media comments or reviews, providing both qualitative and quantitative insights.

Predictive modeling and simulations

Using historical data, models are developed to help forecast future trends and events. This is complemented with scenario simulations, where different hypothetical situations are analyzed to prepare strategies for possible business scenarios.

Benefits of using Business Analytics tools

Some of the benefits of implementing Business Analytics tools to detect improvement areas are:

Supports decision-making

Every decision must be based on data, and companies that use data are three times more likely to improve decision-making processes in terms of inventory management, and pricing strategies, among other aspects.

Audiences can be segmented

With BA, audiences can be divided into different groups and the customer experience can be better developed since their needs can be detected in time.

Reduces costs

Determine the optimal amount of a commercial resource and inventory to help reduce and save costs, as well as optimize flows of components and raw materials in production lines to determine the ideal time to replenish the supply chain.

Identifies commercial opportunities

Business Analytics helps to identify new commercial opportunities that are not very visible and that can increase the company's profitability. Computer models allow you to see customer behavior on time and adjust strategies.

Improve customer service

With Business Analytics there is a lot of information that can be used to generate predictive analytics to optimize the customer experience. With those tools, you can examine their behavior such as purchase habits and internet browsing.

Reduce fraud and risks

Companies such as financial institutions use Business Analytics tools to identify potentially fraudulent purchases. Likewise, predictive analytics is used to observe customer profiles and measure the level of risk they present.

Make effective decisions with London Consulting Group

Business Analytics is a technology that improves the performance of organizations and optimizes processes.

Therefore, at London Consulting Group we encourage your company to make decisions based on data through a comprehensive analysis of your processes and training your employees to know how to use the implemented tools.

Our strategy is based on helping employees know how to interpret and analyze data with collection, processing, and interpretation methodologies.

At London Consulting Group, we adapt to your business objectives to create customized solutions. Contact us today!