9 REASONS WHY BUSINESS ANALYTICS IS IMPORTANT
Business analytics is the process of using certain methods in order to derive meaning from data and make better-informed decisions.
Business Analytics helps in decision-making by analyzing data and through data analytics. Business analytics helps your business by setting goals, minimizing cost, finding your ideal audience. There are many business analytics techniques such as
1.SWOT analysis- SWOT stands for strengths, weakness, opportunities, threats
2.MOST analysis- Most stands for mission, objectives, strategies, tactics
3.PESTLE analysis-PESTLE is an abbreviation which stands for political, economic, social, technological, legal, environment
4.System Analysis- It is the process of studying a business and identifying its goals and preparing systems and procedures in order to reach that goal
5.Business Model Analysis- Business model is a model developed by a business or company to make more profits
6.Brainstorming- It is a meeting conducted to brainstorm new innovative business ideas and come up with tips and tactics on how to increase sales and revenue
Business analytics is important because it helps a business to reduce risks and allows them to make correct decisions by analyzing customer trends, market trends. Artificial intelligence cannot completely take over business analytics jobs. Business analytics can be used to make predictive analysis and it focuses on why things went wrong and help in taking the right decisions in the future.
Here are some of the reasons why business analytics is important:
1.Increases customer experience: By using a business analytics tool a business can easily identify the customer actions performed on the website. By using web analytics tool a business can easily target those customers who took certain actions and recommend those products and services which customer is looking for.
2.Conducting competitor analysis: Conducting competitor analysis helps you in understanding what they are doing better and where we can improve upon. Once we have done competitor analysis, we can do a SWOT analysis and identify which strategy we should incorporate to increase our sales and revenue.
3.Helps in taking better decisions: Market trends keep on changing. The business has to evolve according to the recent market trend. By using business analytics, a business can identify the recent market trends and develop those products and services that help a business to make better decisions and improve overall customer satisfaction.
4.Helps in reducing turnover: Every year thousands of employees are hired every year and many of them leave the company who are not fit to the company culture and the company has to bear expenses. By using a business analytics tool a company can easily identify the employees who are the right for them and understands their culture.
5.Reduces Manufacturing Cost: Manufacturing companies conduct multiple tests before making it live. By using business analytics, they can compare previous data which helps them in making better-informed decisions.
6.Reduces Frauds: Many companies now use business analytics in order to reduce frauds. By comparing transactions the person has made previously, with the help of predictive analysis we can identify customer profile and identify the risk customer possesses, and significantly reduce the number of frauds the customer does.
7.Tackles Problems: When a business is facing any issue the first step taken is to pause all the operations this will result in huge losses and loss of leads. With the help of business analytics, a professional can easily identify such data and helps in preventing such problems in the future.
8.Increases Product Management: E-commerce companies have thousands of products. But which product has to be released when. With the help of business analytics, a product can be released at right time, right season and hence increases sales and profits.
9.Identify right suppliers and vendors: With the help of business analytics a business can easily identify the right suppliers with the help of customer reviews, performance, and order fulfillment. Check out our remaining articles by clicking on this Link