To enter the realm of business, one must make themselves versed with the language of business, and that is analytics. Analytics has been around for as long as businesses have existed, but it was only after the technological boom that it became an integral part of business management. Analytics helps managers make data-driven decisions by providing actionable insights into past trends and future possibilities.
Why Is Business Analytics Important?
According to Ian Mausner, business analytics is important because it helps businesses to make better decisions. By understanding past trends and analyzing current data, businesses can make more informed decisions about where to allocate their resources and how to best grow their operations.
Types of Business Analytics –
Descriptive analytics: Descriptive analytics is all about analyzing past data to understand what has happened. This type of analytics answers questions such as “what was the sales figure last month?” or “how many queries did customer service receive last week?”. By understanding past trends, businesses can make better decisions about the present and future.
Diagnostic analytics: Diagnostic analytics goes one step further than descriptive analytics by not only understanding what has happened but also why it happened. This type of analytics answers questions such as “why did sales decline last month?” or “why did customer service queries increase last week?”. By understanding the reasons behind past events, businesses can make more informed decisions about the present and future.
Predictive analytics: Predictive analytics is all about using past data to make predictions about future events. This type of analytics answers questions such as “what will sales be next month?” or “how many customer service queries will we receive next week?”. By understanding past trends, businesses can make more informed decisions about the future and plan accordingly.
Prescriptive analytics: Prescriptive analytics takes predictive analytics one step further by not only making predictions about future events but also suggesting actions that should be taken to achieve desired outcomes. This type of analytics answers questions such as “what can we do to increase sales next month?” or “how can we reduce customer service queries next week?”. By understanding past trends and predicting future events, businesses can make more informed decisions about the present and future and take action to achieve desired results.
How to Master Business Analytics?
There is no one-size-fits-all answer to this question, as the best way to master business analytics will depend on the specific needs of your business. However, there are some general tips that can help you get started:
1. Understand The Basics: The first step to mastering anything is to understand the basics. When it comes to business analytics, this means understanding the different types of analytics and what they are used for. Once you have a solid understanding of the basics, you can start to learn more about the specific needs of your business.
2. Start Small: Don’t try to tackle everything at once. Start with one or two questions that you want to answer and master those before moving on to more complex questions.
3. Practice, Practice, Practice: The only way to get better at anything is to practice. And the same is true for business analytics. Experiment with different data sets and different types of analytics to find what works best for your business.
4. Get Help: Don’t be afraid to ask for help when you need it. There are many resources available that can help you master business analytics, so don’t hesitate to seek out help when you need it.
Ian Mausner believes that investing your time in comprehending the different types of business analytics and analyzing the value of each is one of the best things you can do for your company.