Business Studies Essay Sample on Benefits of Business Analytics

Benefits of Business Analytics

Business analytics is the quantitative analysis and broad use of data for decision-making within organizations. It encompasses reporting and query but aspires to greater levels of mathematical sophistication. This process includes analytics but involves strengthening them so that to meet a defined business objectives. BA empowers employees in an organization to make rational decisions, improve in process making and achieved desired outcomes that will lead to increase in productivity. Thus, it provides the best of data management, methods for analysis, and presentation of results in a close loop cycle for continuous learning and improvement as stated by (Stubbs 2011).

Morrison-Knudsen Australia and Ipswich workshops use business analytics to determine both optimal ticket bracket and game strategy. Both of these companies have deployed their employees, technologies, and business process in various ways. They have Perpetrate to a culture that is based on factual decision. This helps them to solve the complex business problem and anticipate throughout the organization. Thus, an analytical approach has helped these two companies to identify true drivers of financial performance, profitable customers, accelerate product innovation, and optimize pricing and supply chains.

The uses of business analytics have helped Morrison-Knudsen Australia to improve the flexibility and flow of data. The company integrated the data and structured it in a manner that allows an analyst to discover new insights and provide information to leaders so that to adjust the strategy quickly. Business analytics has also helped the company to get the right technology in place. Stubbs (2011) demonstrated how this process has also played a vital role in Ipswich workshops in developing the talent that they need. They have recruited analytic thinkers who seek and explore the right data to make discoveries. Analysts in the company communicate effectively with the leaders and links analytics protocol to critical decisions. Since the company demand fact-based decisions, managers are encouraged to ask the right questions of data analysis so that to get maximum insight. According to Wise $ Dierna (2012), results are deployed is imperative especially in operation systems such as customer relation management applications to data movies and interactive dashboards. This is done to ensure decision makers have the information they need when they need it.

Morrison-Knudsen Company uses analytics to keep their process transparent. Analytics foster openness, accountability, and communication in the company. Therefore, the investment in this company is measurable and visible. The findings of the analysis are clearly communicated to business to forecast and predict the market trend. The company has also developed an analytical center of excellence that promotes the use of analytics and associated best practices. Since the company has implemented an analytical center, it addresses all elements of the organization analytic infrastructure. Both Morrison-Knudsen Australia and Ipswich workshops have transformed the culture by fostering analytical culture. An analytical culture that is strong has executive sponsorship and foster creativity (Wise & Dierna 2012). These companies also revise their strategies often to avoid duplicating their analytical initiatives to their competitors. Therefore, they stay ahead by continuously reviewing their strategy and development of new skills and capabilities.

These companies also face problems with analytics approach. For example, quantitative approaches are insufficiently linked to making a decision. For instance, lack of the clear process especially from analysis to decisions making the result to an emergence of dysfunctional behavior. These involves: Creation and gathering of analysis and data, but are not used; Some errors in the analysis which does not fit the way it has been framed; Restructuring, repetition, and re-performance of analysis; and Intuition decisions rather than analysis and data. Other challenges that the face the two companies from using business analytics are as follows:

  • Customer and Market volatility.

Tough economic conditions and increased competition makes customers today more price sensitive and fewer brands loyal. During the past years, a business that is middle class would plan for seasonal peaks and identify long-term trends. Nowadays, social media alter sales projection and market trends. For example, bad reviews on social media sites can quickly send consumers to a competitor. Thus, for analysis to be of value, these two companies must be completed within the useful lifetime of the data.

  • Rapidly growing volume and variety of data

This challenge is enormous and ever-expanding amount of data that is supposed to be quickly and effectively secured by the manager. Furthermore, it is costly and time-consuming for these two companies. Today’s environment evaluates market changes and trends, and more sources of data are needed to spot and chart accurately.

In today’s marketplace, critical decisions are made quickly so that to market change or a new opportunity that will enable them maximize on profit. Business analytics helps the company to identify new revenue-generating opportunities. According to Maisel & Cokins (2014), Managers use business analytics to make the scenario to go after new business opportunities. The strategies of the company when using BA is to avoid duplicating their analytical initiatives to their competitors. They stay ahead by continuously reviewing their strategy and development of new skills and capabilities. In addition, business analysis helps to identify relationship-threatening problems before they become serious. However, analysis of data for decision-making processes assists in the transformation of the company. Conclusively, the process of business analysis inspires companies to use analytical decision for solving a business problem and competitive advantage (Maisel & Cokins 2014).

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(Wise & Dierna, 2012).

References

Maisel, L., & Cokins, G. (2014). Predictive business analytics: Forward looking capabilities to improve business performance.

Wise, L., & Dierna, A. (2012). Using open source platforms for business intelligence: Avoid pitfalls and maximize ROI. Waltham, MA: Morgan Kaufmann.

Stubbs, E. (2011). The value of business analytics: Identifying the path to profitability. Hoboken, N.J: John Wiley.