Essay On Business Analytics

876 Words4 Pages
Application of Business Analytics
An increasing amount of businesses are exploring this new concept of analytics. In today’s tech-savvy era, the use of analytics can be seen as a necessity rather than a competitive advantage. More companies are realizing the benefits that come with the use of analytics within the business environment. Like anything else, there are both pros and cons that come with this approach. However, the benefits far outweigh the negatives. Business analytics are the future of the business world. This paper will describe a general overview of business analytics and its application to the real world.
Definition of Business Analytics
Analytics can be a difficult term to explain. In simple terms, analytics converts data
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It is through these three types of analytics, that business analytics can be distinguished from just being the plain process of analytics. These three types of analytics help make this process useful in the business environment. It requires “a clear relevancy to business, a resulting insight that will be implementable, and performance and value measurement to ensure a successful result.” Business analytics includes a combination of all three types to generate new information used for business organization decision-making. Descriptive analytics basically gives you a general idea of the data you are looking at. Predictive analytics takes the next step and predicts what is likely to happen next. Finally, prescriptive analytics figures out what is the best course of action. All three of these types of analytics can be very useful when used in combination with one another. Business analytics can be instrumental to a business’ success when implemented properly. (Schniederjans et al., 2014).
Pros and Cons
The benefits in relation to business analytics far outweigh the negatives within any business. Despite this, however, there still are drawbacks related to business analytics. The three major issues relating to business analytics are ease of use, speed, and scalability. These three factors are the main priority executives are looking for when it comes to data analytics in the business environment. Unfortunately, many executives feel as if they are not
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