Business analytics is the process of using quantitative methods to derive meaning from data to make informed business decisions. It involves transforming data into insights to improve business decisions. Business analytics (BA) is a set of disciplines and technologies for solving business problems using data analysis, statistical models, and other quantitative methods. Business analytics focuses on developing new insights and understanding of business performance based on data and statistical methods. In contrast, business intelligence traditionally focuses on using a consistent set of metrics to both measure past performance and guide business planning.
Business analytics makes extensive use of analytical modeling and numerical analysis, including explanatory and predictive modeling, and fact-based management to drive decision making. It is therefore closely related to management science. Analytics may be used as input for human decisions or may drive fully automated decisions. Business analytics tools handle the elements of crunching data and creating insights through reports and visualization.
At its core, business analytics involves a combination of identifying new opportunities, developing strategies, and implementing plans. The tools used to create insights from data include data management, data visualization, predictive modeling, data mining, forecasting simulation, and optimization. Business analytics focuses on prescriptive analytics, using data mining, modeling, and machine learning to determine the likelihood of future outcomes.
In summary, business analytics is a powerful tool that involves transforming data into insights to improve business decisions. It uses quantitative methods to derive meaning from data and make informed business decisions. Business analytics focuses on developing new insights and understanding of business performance based on data and statistical methods. It is closely related to management science and may be used as input for human decisions or may drive fully automated decisions.
