Business Analytics

Simple Definition for Beginners

Business analytics is the process of using data and statistical methods to analyze business information, helping companies make better decisions and improve their performance.

Common Use Example

A retail company uses business analytics to examine sales data from the past year. They identify the most popular products and the times of year when sales are highest, helping them plan inventory and marketing strategies more effectively.

Technical Definition for Professionals

Business analytics involves the systematic exploration of an organization’s data with an emphasis on statistical analysis. It includes the use of data mining, predictive analytics, and applied analytics to gain insights and support decision-making processes.

Business analytics leverages various methodologies and technologies such as descriptive analytics (what happened), diagnostic analytics (why it happened), predictive analytics (what will happen), and prescriptive analytics (what should be done).

Tools and platforms used in business analytics include SQL, R, Python, and business intelligence software like Tableau and Power BI. The goal is to drive data-driven decision-making, enhance operational efficiency, and identify new business opportunities.

Business Analytics