If you’re a corporate professional, you’ve likely already heard of the concept of business analytics. However, you may not be aware of the different types of business analytics that exist.
If that is the case, you’ll be surprised to learn that there are four types of business analytics – each with its methods, processes, and techniques, each serving varying purposes, and all eliciting unique results in the business world.
Stay with us as we explore the four different types of business analytics and their benefits.
Business analytics is an emerging, rapidly growing, and thriving field today. But, what is business analytics, exactly?
Essentially, business analytics is a process that uses data analysis and quantitative methods – such as statistical modeling – to uncover and resolve issues that arise in a business’s daily operations. It also helps to ascertain best business practices and improved methods of operation, as well as assisting with strategic decision-making for future business plans and projects.
If you’re interested in discovering more about this field, you can take an online master’s in business analytics. Completing this type of degree will also set you well on your way to a successful, lucrative, and rewarding career path as a business analytics professional.Also read: 10 Top Android Apps For Personal Finances
We’ve discussed a little about business analytics and what it involves. What you may not already know however is that there are four different types of business analytics. These are:
Descriptive analytics can be described as the process of analyzing data retrospectively. This means looking back on past actions and their outcomes, and then, evaluating these after the fact. In this way, descriptive analytics reports can be used to identify recurring patterns and problems that arise in a business.
Similar to descriptive analytics, diagnostic analytics also use historical and retrospective data to conclude. However, it differs in that it digs deeper into the reasons why issues occur, for a more in-depth understanding of the causes of a business’s problems. In this way, diagnostic analytics ‘diagnose’ a business’s issues, and help identify the root cause of the problems at hand.
Just like diagnostic and descriptive analytics, predictive analytics also draws on historical and retrospective data. However, the way it utilizes this type of data is very different. This form of business analytics uses historical data to predict future trends based on past patterns. This helps businesses pre-empt and intercept future issues, and to prevent them from happening again.Also read: What Is Beta Character AI? Comprehensive Review + FAQs
Prescriptive analytics draws upon a combination of diagnostic, predictive, and descriptive analytics techniques for its methods. Importantly, however, prescriptive analytics can not only help to pre-empt and predict what situations are going to arise in a business, but it can also give insights into what actions to take in the future, and also enable businesses to make better and more informed decisions moving forward.
It is important to note here that each of these different types of business analytics methods can be used together, and in different combinations, for the best results. In this way, effective business analytics will draw on each of these techniques and processes in different ways, and at different times, depending on the goals and objectives of the business in question.Also read: 2021’s Top 10 Business Process Management Software
A versatile, adaptable, and highly regarded career path, if you choose to qualify as a business analytics professional, your skills will always be in high demand. Importantly, the skills you acquire and develop as a business analytics professional can be applied to a variety of different industries and fields.
For example, you will be able to find employment as a business analyst in the government sector, as well as not-for-profits or NFPs. In addition to this, other industries and fields such as commerce, manufacturing, and human services will also often seek the professional assistance of business analysts.
Further to this, pursuing a career as a professional business analyst can also be very lucrative. Indeed, it is currently one of the highest-paying jobs out there! If money isn’t your motivator, however, the appeal of business analytics also lies in knowing that you are truly making a difference to the business that employs you. Being a business analyst is rewarding, challenging, and inspiring work, and no day is ever the same.
Likely, you have already heard of business analytics. You may even be considering a career as a business analyst.
Despite this, though, it is not common knowledge that under the umbrella of business analytics, there are four very different methods of analysis. Known as descriptive, diagnostic, predictive, and prescriptive analytics, is it essential for aspiring business analysts to be abreast of each of these techniques.
The best news? If you ensure you are well-versed in these processes, a successful and lucrative career as a business analyst could be yours.
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