Best 4 EXAMPLES OF BUSINESS ANALYTICS IN ACTIONApril 25, 2022
The data that we have today is a valuable resource because our marketplace is ever-changing. The skill of interpreting and communicating data is an essential skill that can facilitate sound decision-making for business professionals. Here are the Best 4 EXAMPLES OF BUSINESS ANALYTICS IN ACTION.
Business Analytics Professor Jan Hammond says companies lacking these capabilities have a challenging time recruiting people who can bring data-driven insights to decision-making. These insights are becoming more and more critical.
WHY IS BUSINESS ANALYSIS SO IMPORTANT?
The video below from Harvard Business Review describes business analytics as “the use of statistics and math to derive meaning from data to better manage your business.”
Business analyses are classified into four main categories: descriptive, predictive, diagnostic, and prescriptive. They are analyzing historical data to identify patterns and trends under descriptive analytics, while predictive analytics is about using that information to predict future outcomes under predictive analytics. Analyzing historical data to determine the root cause of a problem under diagnostic analytics.
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Data science vs business analytics
Understanding the difference between data science and business analytics is crucial. Big data is used in both processes to solve business problems, but the two are different.
Data science is about analyzing raw data to draw conclusions based on algorithms and statistical models, while business analytics focuses on extracting insights from data that guide organizational decisions. Business analysts work with budgets and forecasts in terms of budgeting, forecasting, and product development, whereas data scientists are involved with data manipulation, programming, and statistical modelling.
SAMPLES OF BUSINESS ANALYSIS
According to a recent McKinsey survey, an increasing number of organizations report generating growth using analytics. The following four companies utilize data insights to make their decision-making processes more efficient by aligning with this trend.
Increased Collaboration and Productivity at Microsoft
Microsoft is a technology giant where collaboration is key to driving innovation and achieving productivity. When the company relocated the engineering group’s offices in 2015, it sought to understand how face-to-face interactions could improve employee output and reduce costs.
How Uber enhanced customer service
An Uber ride-hailing company’s top priority is to provide its customers with a quality service. It created the Customer Obsession Ticket Assistant (COTA) in early 2018 to streamline its customer service operations-a tool that uses artificial intelligence and natural language processing to help agents respond to support tickets faster and more accurately.
Blue Apron Forecasts Recipes and Orders
Customer behaviour and preferences are crucial to the success of the meal kit delivery service Blue Apron. It uses predictive analytics to forecast demand and present its subscribers with a fixed menu of meals available for purchase every week. It allows the company to eliminate product spoilage and fulfil orders efficiently.
PepsiCo’s Consumer Strategy
Multinational food and beverage company PepsiCo relies heavily on consumers for its success. More than one billion customers are served worldwide by the company every day. Big data and predictive analytics allow PepsiCo to place the right quantity and type of product in the correct location.
Develop a data-driven mindset.
As illustrated by these companies, analytics can be a handy tool for organizations looking to grow and optimize their operations and services. An in-depth understanding of data can help individuals make better decisions, advance their careers, and be recognized for their efforts at work.