What is Business Analytics?November 21, 2017
Business Analytics is the systematic computational analysis of data. In the simplest sense, Analytics is Applied Business Statistics. Statistics is a collection of methods for planning experiments, obtaining data, and then organizing, summarizing, presenting, analyzing, interpreting, and drawing conclusions to understand underlying macro trends.
Applied statisticians apply their knowledge of statistical methods to a variety of subject areas, such as biology, economics, engineering, medicine, public health, psychology, marketing, and education.
A Brief History of Analytics:
Availability and accuracy of data is the key to decision making. As such, Analytics in some form or the other has been part of business decision making.
There are numerous drivers of production and the supply chain, and there are several processes under each driver. These processes are associated with high overheads and offer opportunities for cost reduction.
Cost reduction requires a complete knowledge and mapping of all costs, cycle times, purchases, inventories, suppliers, customers, logistics, and other service providers throughout the supply chain. Just-in-Time and Six Sigma are two very popular statistics-driven management areas which have been around since the early 1900s.From then on wards, there has been a steady integration of Statistics into business decision making.
By 2005 most banks, insurance companies, drug and pharma companies, casinos, telecom companies and internet companies had started using data to make critical decisions. These days, data scientist has become a ‘cool’ word to refer to Analysts.
Critical Competencies for a Data Analyst:
A Data Analyst needs to have three critical skills:
- Understanding the business – to define the problem in statistical terms and, after the analysis, to summarize and suggest solutions which the business can implement
- Understanding statistical techniques – to decide which technique can be used to solve which problem
- Understanding of Analytics software like SAS, R , SPSS, Excel Analysis Toolpak etc. – To be able to implement the statistical techniques on the data
Future and Careers in Business Analytics
With the explosion in the quantum of data (mobile, internet, application software, sensors) and reduction in costs for storing data, there is a huge demand for Analysts – who are seen as people who can make “sense” of data.
- Data scientists are high in demand — according to one estimate, job postings increased by 15,000% between 2011 and 2012.
- Between 2010 and 2020, the data scientist career path is projected to increase by 18.7 percent, beat only by video game designers.
- There’s a global talent shortage, which means that data scientists are in high demand but short supply. As a result, average salaries are trending higher and higher — the average data science salary in the U.S., according to Glassdoor, is $117,500. Not surprisingly, those with PhDs and experience can earn salaries as high as $650,000, based on a Reuters peHUB article.
According to a report by McKinsey Global Institute, “there will be a shortage of talent necessary for organizations to take advantage of big data. By 2018, the United States alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions.”
Imarticus offers an extensive certification course in Business Analytics for freshers and working professionals :
Data Science Prodegree: This program is co-created with Genpact as Knowledge Partner. This program helps you with the deep understanding of Data Analysis and Statistics, along with business perspectives and cutting-edge practices using SAS, R, Python, Hive, Spark and Tableau.
Post Graduate Program in Data Analytics: This program helps you to understand foundational concepts and hands-on learning of leading analytical tools, such as SAS, R, Python, Hive, Spark and Tableau as well as functional analytics across many domains.
To know more, please refer to our website: https://imarticus.org/business-analytics-courses/