Today organizations and business firms around the world are harnessing the power of data to transform the business scenario. The quantity of data being generated and collected is increasing exponentially with each passing minute. However, merely accumulating data cannot benefit an organization. It is only by transforming this data into a valuable asset that companies can add value to their core foundation. The key to success lies in converting the massive amount of data into actionable information that can drive profitability, scale up revenue, and boost the overall efficiency of an organization.
Let’s look at what is analytics in depth!
What is Business Analytics?
The simplest way to answer “what is analytics” would be that it is “the study of data through statistical and operations analysis, the formation of predictive models, application of optimization techniques, and the communication of these results to customers, business partners, and college executives.” Business Analytics leverages Big Data through quantitative techniques to promote enhanced business modeling and decision making.
Although Business Analytics (BA) and Business Intelligence (BI) are often used synonymously, they are quite different. While BI focuses on gathering data from multiple sources and processing it for analyzation, BA analyzes all the relevant information provided by BI to foster data-driven decisions.
Now that you’re aware of what is analytics, let’s look at some of the most used analytics tools.
Business Analytics Tools
The next stop after answering “what is analytics” is looking at some tools for the same:
Sisense is one of the most popular analytics tools in the market. In 2016, it won the Best Business Intelligence Software Award from FinancesOnline. Sisense is an excellent tool for simplifying complex data analyses and making Big Data insights viable for both small and medium-sized companies.
- Sisense’s in-chip technology can process data ten times faster than conventional systems.
- It accumulates data from multiple sources with complete accuracy.
Clear Analytics is an Excel-based intelligence tool that is loaded with many useful features such as reports scheduling, version control, administrative and sharing capabilities, and governance. For anyone who’s well-versed in Market Excel, using this tool will be very easy. It includes various BI-oriented features to help automate, analyze, and visualize all of the relevant data and information of a company.
- When using Clear Analytics, you don’t need a data warehouse as it pre-aggregates data through the Logical Data Warehouse (LDW) approach.
- Tracing and auditing data is particularly convenient with this tool, so there remains compliance on all levels of the company.
Pentaho BI is one of the leading tools in open source business intelligence. It can gather data from across a variety of sources and transforms this data into helpful insights that can be formulated into well-articulated plans and campaigns. To be precise, Pentaho BI is the ideal tool for businesses looking to scale up profits through better, faster, and accurate decision-making.
- It offers an array of rich navigation features that can enhance data visualization when aided by web-based dashboards.
- The intuitive and interactive analytics of Pentaho BI is equipped with advanced features such as for lasso filtering, zooming, attribute highlight and drill down for improved functioning.
MicroStrategy is an efficient tool that allows companies to access all business data from one place effortlessly. Everything is integrated into a consolidated platform so that business organizations can leverage the data to create meaningful and compelling campaigns. MicroStrategy uses powerful dashboards and data analytics to boost productivity, reduce costs, optimize revenue, and predict new opportunities, all of which are crucial to a company’s growth.
- It can be used both from mobile devices or desktops.
- MicroStrategy allows you to save data either on-site or in the cloud (powered by Amazon Web services).
QlikView is a super user-friendly platform, incorporating best of both worlds – from tech-savvy business intelligence tools to traditional productivity apps, you’ll find it all here. This tool allows organizations to harness and process data in a way that fosters innovation. Whether you want to enhance, re-engineer, or provide support to the various business processes, Qlikview applications ensure that you come up with exciting and efficient solutions for all business requirements.
- QlikView offers a host of customized solutions for sectors such as banking, insurance, etc.
- It is a self-service tool through which businesses can analyze and manipulate data to gain useful insights.
Benefits of Business Analytics Tools
The valuable insight provided by BA tools allows organizations and companies to chalk out ways to optimize and automate business processes. Not only do BA tools help companies make data-driven decisions, but they also have many more clear-cut advantages:
- Business analytics make tracking and monitoring business processes extremely efficient and seamless, thereby allowing companies to handle even the most complex of business operations with ease.
- The market insights offered by BA and BI tools can give you a competitive edge over your competitors as you always get updates about your competitors, latest consumer trends, and also about potential markets. This is highly advantageous for businesses in a competitive environment.
- BA tools (predictive modeling and predictive analytics) can offer accurate and timely predictions about the market conditions while simultaneously allowing you to streamline your marketing strategies for the best possible outcomes.
- Using statistical and quantitative analysis, you can get a plausible explanation on why specific strategies fail and why others remain successful. Thus, you get a clearer idea of what kind of plans you should focus on and what to leave out.
- BA tools can efficiently measure the Key Performance Indicator (KPIs) which can further assist companies to make better and timely decisions.
Applications Of Business Analytics
The industries using Business Analytics on a day to day basis will help you understand what is analytics in a much practical fashion. Here are some of the industries:
Business analytics is gaining ground in the field of marketing because it can reveal vital statistics about consumer behavior and market trends. Furthermore, it can help companies to identify their target customers as well as potential markets that promise significant growth.
Business analytics is crucial to the finance sector. Using BA tools finance companies can process the vast amounts of data available at their disposal to unravel valuable insights on the performance of stocks and provide advice to the client whether to hold on to it or sell it.
HR professionals are now using BA and BI tools to conduct relevant background checks on potential candidates. Using BA tools they can find out detailed information about employee attrition rate, high-performance candidates, and so on.
Business analytics has also come to play a pivotal role in the manufacturing sector. It can use the data to offer meaningful insights into inventory management, supply chain management, the performance of targets, and risk mitigation plans. Also, BA tools can help companies scale up their operations efficiency.
Today, Business Analytics has become an integral part of the business world. As data keeps on piling up by the minute, more and more organizations are relying on BA and BI tools to boost profitability and optimize business operations. And with the cut-throat competition that exists today, businesses that do not integrate business analytics within their framework are not only missing out on growth opportunities but also might fail to keep up with the market over time.