Harnessing Business Analytics Capabilities to Improve Decision Makingby Vivek Kumar August 21, 2020
How the quality of business decision making enables companies to adapt to the changing environment?
The arrival of digitization across diverse industries has put immense pressure on business decision-makers to improve their overall performance. With companies generating huge amounts of data than ever before, they also come under pressure to derive valuable insights. However, the explosion of data and to stay ahead of the competition are prompting organizations to capitalize on the capabilities of analytics to drive strategic business decisions. By leveraging business analytics, decision-makers and management accountants are empowered to describe various data sets and realize the various dynamics of their business.
Typically, business analytics intends to generate and improve knowledge, understanding and learning in order to support evidence-based decision making and performance management. It is predicted that there will be 175 zettabytes of data worldwide by 2025. This much amount of data will certainly disrupt existing business models and ecosystems. Thus, to process and extract meaningful insights from them, businesses must have effective data management in place. Some have already unfolded the power of big data solutions to influence their future decisions.
Why Business Analytics Matters?
While data is the new oil for companies to grow, there is a need to process and analyze data companies collect to garner actionable information from them. This is more important to access and understand digitization across a business process. When it comes to making effective decisions, traditional business models are now being broken down.
Moreover, the proliferation of new data sets and the emergence of vast data migration capabilities are undermining existing information and technological silos. Thus, to smash past performance in a quest to bring futuristic plans, businesses are turning their heads toward business analytics. It essentially involves quantitative and statistical analysis, predictive modelling, data mining, and multivariate testing. This can be leveraged for personalized products and services to scale digital platforms to match both buyers and sellers.
The promise of business analytics lies in its manifold layers of applications, offering substantial advantages to businesses. It also assists in interpreting the available primary and secondary data more comprehensively. In turn, it affects the operational efficiency of departments within an organization.
Business Analytics for Data-Driven Decision-Making
In today’s highly-competitive business ecosystem, decision making is shifting to the point where business leaders first understand the numbers and their influence. They then use that insight to drive intelligent business decisions. Studies show that companies who have adopted data-driven decision management relatively achieve significant productivity gains over their peers.
Many organizations today still make use of enterprise resource planning (ERP) systems that ensure the availability of data. However, conventional ERP systems are not much able to data analysis capabilities that can help business leaders in decision making. This is where business analytics has a role to play.
As a multidisciplinary field of investigation of past business performance, business analytics uses the expertise of statistical learning, AI, machine learning, computer science, information technology and management strategies to reap insights and drive business planning from data. This translates to a more effective and precise decision-making process by supporting in understanding the sentiments of the customers towards a company, its brand and products and services. By understanding their customers behaviours, business leaders can gain sales growth margins and stay atop of their peers.