Business Analytics includes:
- Extensive data mining to find meaningful and actionable insights from historic data
- Statistical analysis to find out the key drivers of any customer behavior
- To use this information to develop a predictive model
- To present all insights and predictions in actionable dashboards.
Business analytics is used across the domain and processes to increase the productivity and optimize the processes. Some of the domain that uses BA extensively is Banking, Telecom, Retail, Healthcare and Insurance. These companies uses the Business analytics to improve productivity in their customer acquisition , Fraud detection and prevention , Default prevention or Early warning delinquency predictive models and collection processes.
The generic approach in Business analytics is to understand the business problem. Assess the data to see if it can fulfill the BA requirement. Then identify the best suited statistical techniques to solve the problem. Validate the solution over out of stock dataset or out of time dataset. Finally the tool/scorecard is delivered and implemented at client’s site
Some of the tools that is being used for BA are SAS,SPSS and R. These days all Business Intelligence companies are laying special emphasis on adding BA in their offerings. Due to revolution in data storage capacity and computing resource to analyze huge amount of data being captured, BI companies are looking at BA(Business Analytics) to add values to their offerings.
Some of the business offerings by Business analytics companies are as follows :
Predictive Analytics :
Predictive analytics solution helps companies to predict any business event and helps them to take proactive measures to increase profit. The advanced techniques of statistics and Mathematics like Regression Models (Linear regression models, Logistic Regression model, Generalized Linear Model ) and time series Modeling(Auto Regression(AR), Moving Average(MA), ARIMA, GARCH etc.) to predict or forecast future events like sale, fraud or collection.
Management Dashboard and MIS:
An intelligent Management Dashboard and MIS is a must of any Business Analytics Solutions. A management Dashboard and MIS allows executives and other stakeholders to define targets and monitor progress of different performance indicators. Ideally the automated dashboards should provide-
- Visual presentation of performance measures with in-depth identification of indices
- Ability to identify trends and areas of business opportunities
- Ability to make more informed decisions based on collected business intelligence
- Instant visibility of all systems at run time
Forecasting is one of the major offering of Business analytics companies. Forecasting helps the companies in inventory management, smooth supply chain management, capacity planning of the resources and to have better projection of the sales. Forecast helps the company to take the mid course correction in case sale forecast is not as per expectation. Usually time series techniques like Auto Regression (AR), Moving average (MA), ARIMA, ARMAX, GARCH etc. is used for forecasting.
Analytical Decision Management System:
The ultimate aim of business analytics solution is to help companies in developing a smart and scientific decision management system. Business analytics solutions help in automation and optimizing the business decision using the historic data. Ideally analytical solutions are mounted on CRM systems and are used in run time to help in decision process.