Business Analytics: How it Helps Businesses in Decision Making Process

What is Business Analytics and how does it Help Businesses in their Decisions Making Process
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What is Business Analytics and how does it Help Businesses in their Decisions Making Process
In the digital age, organizations continue to generate vast amounts of data during their operations. Such data portrays the daily routine and offers information on different aspects of the business. As a result, analyzing such data provides an opportunity for such organizations to improve their processes, increase efficiency, reduce costs and monitor progress (Bag, 2016). Consequently, business analytics involves the use of professionals in evaluating and analyzing business data through statistical methods and available technology to gain insights. Changing technology thus offers businesses an opportunity to use analytics to improve their position on a globally competitive market.
The Concept of Business Analytics
Data collection and tracking has become an important aspect of business in the world today due to the advanced technologies such as artificial intelligence that allow the personalization of such data. In most cases, businesses with an online presence tend to interact with their clients through social media and advertisements. In this case, consumers clicking ion such links leave crucial data that may be collected by such companies. Such data on consumer trends can significantly improve the business operations if properly analyzed and used to make decisions (Gavan, 2019). Data ultimately plays an essential role in business since it provides evidence-based information. The use of numbers to provide models and predictions significantly outweighs any other forms of interpretation to provide a basis for future actions.
Being a scientific method, business analytics provide objectivity to organizations using available data in their field. Statistical designs used in the process can provide mathematical models that can accurately be used to make business decisions Therefore, different fields may utilize such information in different ways to achieve their goals. For instance, while some businesses may implement strategies to increase their profits, others may opt to use such information to improve workflows and efficiency. As a result, the uses of business analytics are wide and can be applied across different sectors to achieve better results. Ultimately, the aim of business analytics lies in providing personalized data and analysis to individual organizations.
Elements of Business Analytics
Data Mining
Data mining involves the sifting through large tracts of data to identify patterns and trends that may be not be visible through other means. The current digital world creates numerous data points that are useful for businesses searching for data insights.
Text Mining
In text mining, information is collected from a huge database of textual data available on the internet. In this case, data is collected from social media sites and any other communication channels that consumers may use to interact with the organization. From such data, information on consumer preferences, product reviews and performance may be extracted to inform decision making (Vigen et al., 2019...