Business analytics is becoming a necessary ingredient for enterprises. Better insights and predictions mean fewer errors in the decision-making process, resulting in competitive gains. In this article at the Innovation Enterprise, Gary Cokins explains why business analytics is necessary to stay ahead of the game.
BI vs. Business Analytics
While business intelligence (BI) provides reports of raw data, business analytics translates the data to derive business value.
BI charts the data in reports and graphs according to the query you have made. Business analytics, on the other hand, analyzes the data based on the desired context and provides insights to determine conclusions.
BI produces visibility to the static data that you have collected from the databases. Business analytics creates new information and more inquiries but can conclude from the available variables. Top executives can leverage this decisive power to get business value from current and future initiatives.
The Aspect of Necessity:
Business executives hardly know about predictive modeling or forecasting. Nevertheless, these methods will soon be the topics for discussion in the board meetings. To get effective results, organizations must implement and maintain standard processes for analysis.
You must set up a cross-functional team with people from various departments, roles, and expertise. Establish standard practices, tools, and data sources. Create a management committee that will monitor the entire process and evaluate progress. The committee will determine outcomes based on the insights that the team produces.
If organizations want to be market leaders in the competitive market, the management team must master all types of analytics. Predictive business analytics is the next big thing that is going to influence businesses. It will assist in forecasting results as well as aid in maximizing benefits from available resources, assets, and contracts. It might be that your organizational business capabilities will heavily depend on your competency in business analytics.
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