Nowadays data is currency for all organizations. The companies maintain a lot of data related to their business. The data could be about their customers or finances or related to their operations. Business analytics is the analysis of this data with different dimensions in order to aid the company in the decision making process. The company uses the data to gain insights that can be used to implement strategic business decisions which further can optimize the entire business process. Thus, a company gains a competitive advantage because of these insights.
So, how do companies use these valuable insights to their advantage? They use the data to find new trends and patterns for their customers. The companies also use the insights for forecasting upcoming trends. Most of the companies outsource this process to the companies that have expertise in this specific domain.
Business analysis consists of following: customer analytics, marketing analytics, risk analytics and operation analytics. Customer analytics consists of customer acquisition which involves acquiring new customers and more involvement of the customers with your brand. It helps in generating new business leads which will benefit the company when the leads get converted to sales. Once the company acquires a customer, the next thing it does is to increase the share of his wallet for the company’s brand or product. This is done by up-selling or cross-selling the products. This helps the companies to understand what kind of up-sell or cross-sell to perform and hence helps to devise a strategy for the same.
Marketing analytics helps the companies to develop insights related to its marketing activities. It includes calculating effectiveness for a particular campaign, measuring return on investment (ROI). The effectiveness or ROI could be across conventional or digital platforms. The insights will help the companies in optimizing the marketing mix and make changes if the activities are not in sync with its objectives.
Another area is risk analytics wherein the company performs a risk assessment before taking a business decision. Risk assessment includes activities related to the company’s portfolio, the company’s account and the capital management. And the last one includes supply chain analytics, human resource analytics and also deals with calculating the effectiveness of the sales force.
More and more companies are inclined towards analytics in order to be successful in their decision making process. The importance of such analysis can be considered from the fact that the companies are willing to increase their expenditure for the same. The companies should consider these activities as an investment and not as an expense.
A Closer Look At An MBA In Business Analytics
An MBA in business analytics is able to prepare the students so that they can be ready to take on the many careers that are found in this dynamic field.
A lot of data is being stored and gathered from the many medical records of each individual so that they can be transported to well-equipped providers of logistics. Many optimization methods and fast computers are now readily available so that they can be able to transform the data to information that plays a big role in making decisions.
The data will now play a big part in making it easy for you to slowly apply some analytical methods that are highly advanced to help solve some business problems that couldn’t be solved in the past.
If you decide to specialize in business analytics masters then you’re able to learn how to use various models and data to assist you to make informed decisions that involve business. A student who specializes in this field will slowly learn how they can model some of these relationships by knowing how historical data is able to predict stock returns, the benefits of advertising on sales and also how some of the changes in task characteristics are able to greatly influence the completion time.
The admission criteria for an MBA in business analytics mainly depends on both your professional and academic background. It is also dependent on the potential for having a successful career in analytics. Each applicant is mainly evaluated on the basis of the criteria mentioned above in relation to the current applicant group.
Having an academic background in fields like business, mathematics, and economics is actually crucial for anyone who wants to pursue an MBA in business analytics.
When it comes to understanding business analytics, it is a program that teaches you to refer to technologies and skills that are able to explore the past performance in business so that you can make better and informed decisions. The program is actually very essential for those students who are looking to transform large amounts of data into better decisions.
Below are some careers that you can pursue after the completion of this program.
- Analytical marketing
- You can also work as a consultant in environments that are rich in data.
- Analysis of financial data.
- Business technology
- Risk Management
- Strategic Planning
- Public Finance
- Investment Banking
- Management Consulting-
- Brand Management
All applicants of these programs should have an interest in applying analytical approaches to management which is clearly showed in courses like probability and statistics, Statistical Decision Making and Optimization.
Some management books like Competing on Analytics or Smart ( Enough) Systems are very popular for all students who are interested in doing this amazing and important program.
This program is very crucial for anyone who is Interested in building or enhancing their career in business. It helps you to make well thought and great business decisions that allow you to grow your business.