Businesses are pursuing statistics-based tactics to gain a competitive edge in complex markets. As organizations are flooded with increasing amounts of data, they are discovering that business analytics is an effective resource for responding to new performance pressures. Business administration students about to enter the workforce can benefit from analytics-related training and skills they will acquire through a business analytics degree.
Predictive modeling involves the use of data mining and probability statistics to measure trends in marketing, customer relations, and productivity. Business professionals versed in predictive modeling use calculations, such as the customer lifetime value (CLTV), which shows how much a customer will purchase from a company over a particular period of time. Predictive modeling elucidates other aspects of customer relationships, such as which product or service a customer is likely to purchase next or which advertisements resonate with the target market. Sales forecasting has direct benefits in production management and manufacturing optimization, as it can significantly influence a company’s overhead. This allows a company to leverage precise control over manufacturing speed – increasing and decreasing production as needed.
Modern organizations value skill sets that differ from those in the past. Whereas data manipulation and spreadsheet preparation were once the main focus several decades ago, critical thinking, problem-solving, and drawing conclusions based on analytics are now at the forefront of a business’s needs. One of the most significant benefits of business analytics is more efficient decision-making capabilities. In order to be more competitive in the growing markets, businesses need to be strategic when it comes to making decisions. They do this by weighing the facts and considering a variety of approaches; through this process, they can serve to improve the overall efficiency and profitability of their organization. Business graduates with a background in analytics can prove their worth to companies who are underutilizing data by demonstrating the benefits of making well-researched, fact-based decisions.
Quantitative analysis is the process of employing numerical values to represent real business situations. This serves to propel business strategy and performance evaluation into the future, by anticipating upcoming scenarios and emerging trends rather than reacting to an event that has already happened. Proper analytical training provides business professionals with the skills needed to use mathematical calculations, statistical modeling, and in-depth research to benefit organizations in a wide range of areas. Quantitative analytics has proven to increase efficiency in determining lucrative investment strategies, evaluating financial ratios, tracking employment figures, optimizing price-earnings (P/E) ratios, and predicting economic world events that influence business and finance.
Gleaning insight from the vast amounts of available data that businesses are now able to collect and store is one of the biggest challenges that modern organizations currently face. Big data has quickly become a major asset to companies who are able to synthesize and interpret it for their benefit. Without proper analytical training and skills, the goldmine of big data may be rendered useless. Companies view big data and data analysis as tools for improving strategic workforce planning, creating efficient and targeted marketing, increasing sales and profits, and boosting customer relations and satisfaction. Those who understand the tenets of data management and optimization can help organizations reach these goals.
As the field of business analytics continues to rapidly evolve, developing and refining analytical skills has become more of a necessity for business, finance, and accounting professionals. For those in the business workforce, a working foundation in the fact-based analysis is essential. As technology advances and expands the possibilities for analyzing data, professionals need to keep their technical skills sharp. Adding to the analytical repertoire will improve one’s chances of excelling in all business-related industries.
Ohio University Business Analytics Course
The Ohio University Online Master of Business Administration offers a unique concentration in business analytics that is designed to help business professionals understand analytics techniques and business intelligence methodologies. They learn how to utilize available data in business through focuses on data management, optimization, mining, and visualization. Business analytics competency can benefit managers by providing insight and support to the decision-making process. Course topics vary from prescriptive and predictive analytics to data management and business intelligence.
The Balance.com, “Business Analyst Skills List and Examples”
ISB.edu, Benefits of Business Analytics
Harvard Business Review, “A Predictive Analytics Primer”
TranformativeDataWithIntelligence.org, Research and Resources, “How Organizations Benefit from Predictive Modeling”
Investopedia, Quantitative Analysis
Deloitte.org, The Analytics Advantage
American Management Association, “Companies See Need to Build Analytical Skills in Their Organizations:A”
Financial Magazine.com, “Business analytics skills high on CFO wish list”
CFO.com, The Virtues of Fact-Based Decision Making