Newstricky| If you have a business and are looking to improve your decision-making, the topic of business analytics is bound to come up. It is critical that you understand what this entails and why it is important to you to be informed when the subject is broached because it is relevant to every business and one of the fastest-growing fields. You will probably have to hire a data analyst as a permanent member of your team, or if you are a smaller company you will benefit from a consultant performing these duties for you. If you are a prospective student pondering on a good career choice for your studies, data analysis is experiencing major underemployment and offers commensurate salaries.
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Understanding the Background to Business Intelligence and Data Analytics
Data analytics flows from two streams – business strategy and computer science. A company must have a data strategy as in most companies, employees can access 70% of data they should not be able to see. There is also an unbelievable amount of raw data generated in any company that needs to be processed and packaged before it can be utilized meaningfully in business strategies. This needs to be defined and prioritized. Computer science is the bed on which this all rests. The products and methods available to the business intelligence person are constantly in flux and the incumbent needs to be highly PC literate. It may also be necessary to integrate systems, such as the customer management system and the financial management system, for example, with an interface. The business intelligence person needs to identify these opportunities for better data management.
A data analyst takes the raw data produced by a company and converts it to business information that the business can base its decisions on. For example, one can analyze production data and customer complaints in the service or repair environment to determine which activities are being delayed and what customers want to be attended to first. It can be used to discover bottlenecks and poor procedures.
One of the biggest challenges in the field is keeping abreast of new technologies. These are increasing at a phenomenal rate. It is therefore important that you have a love for the IT field and technology and that you enjoy work where you are constantly learning. Data analysts work out of the IT department. This position provides job security because all businesses confront a need to understand their data and use it effectively.
Companies looking for a business analyst may not have conducted any analysis of their business or are looking to move away from basic programs like MS Excel to something more interactive and automated. To assist these clients, the data analyst has to look at their current end product and goals, for example, what information does their dashboard contain, what key performance indicators (KPIs) do they want to monitor, and what they hope to achieve with a project? This will provide the right information to start looking at their actual data and making it accessible for decision making.
The Market for Data Analytics
There is substantial demand for graduates with a master’s in business analytics. Much sought-after skill is the capability to analyze data and use this to inform business decision-making. Companies are establishing departments and positions for business intelligence (BI) and data analysis. This $26.5 billion industry is expanding rapidly and currently has over 1.5 million vacancies. This is the biggest employment gap across all industries.
Businesses have benefitted from data analysis which enables a company to rise beyond their competitors, increase profits and the bottom line, make consumers more aware of their brand, improve internal relations, and boost organizational efficiency. Companies that use data analysis make better decisions and do this five times faster than other businesses. If you want to embark on a cutting-edge career, you may want to consider obtaining a qualification in data analytics, such as a master’s in business analytics from Aston University.
Balancing Data Defense and Data Offence
Data defense and data offense are based on different business objectives and activities. Data defense is underpinned by the requirement to minimize downside risk. Its numerous activities include making certain that the business complies with regulations regarding the protection of data and the integrity of financial reports, fraud identification and prevention, and eliminating data theft. It also comprises ensuring standardized data and selecting or changing its source for accuracy and comparison. Its focus is on compliance (financial and legal). Usually, it does not occur in real-time except for data fraud prevention.
Data offense is concerned with customer satisfaction and enhancing profitability and revenue streams. Its various activities are to perform data analysis and modeling to obtain insight into the business’s customers and the market, as well as the integration of systems with the provision of dashboards. In short, anything to do with improving data appearance and accessibility is required for decision-making by management. It is usually displayed in real-time and concentrates on sales, marketing, and customers.
Data offense and data defense must be balanced. Both are necessary and some companies are fortunate to be able to place equal emphasis on both, while other companies have to determine the resources, staff, and funding required for each and what they are able to do.
If an industry is heavily regulated, data defense would be the priority. Examples of such industries are health care and banking. Where there is strong market competition for customers, data offense would receive the most attention. An appropriate trade-off between data offense and data defense must be decided, based on the overarching strategy of the business. This is also affected by the opposing needs of data flexibility and data standardization. Uniform data lends itself to data defense and instituting data access control measures. Flexible data is more suitable for an offensive data strategy.
Data-driven decision-making enables companies to improve their strategies and to boost their ability to compete in an industry, leading to increased profits and better compliance. With a bit of basic research, one can quickly brush up on this new vital and expanding toolset.
