What is Business Analytics?
Business analytics is a field that drives practical, data-driven changes in a business by using different processes and methodologies such as data mining, predictive analysis, and statistical analysis to analyze and transform raw data into useful insights, identify and anticipate trends and results, and measure past performance to guide an organization’s business strategy. Business Analytics can also be broken down into multiple components:
- Data mining describes the process of extracting and analyzing a massive volume of data, using databases, statistics, and machine learning, to identify patterns and establish relationships to solve problems through data analysis.
- Association & Sequence Identification is the detection of predictable actions performed in combination or sequence with other actions.
- Text Mining, also known as text analysis, is a process of converting unstructured text data into meaningful and actionable information. Text mining uses different AI technologies to automatically process data and create valuable insights that enable businesses to make data-driven decisions.
- Forecasting is a method used to make informed predictions by analyzing historical data as the main input to determine the course of (future) trends, events, and behaviors.
- Predictive Analytics is the use of data, statistical algorithms, and machine learning techniques to determine patterns and make accurate predictions of future outcomes and trends based on historical data.
- Optimization is a method that uses simulation techniques to identify scenarios that might produce the best results once patterns have been determined and future outcomes and trends have been predicted with the business analysis.
- Data Visualization is the presentation of data using a graphical format that highlights patterns and trends in data and helps the reader achieve quick insights.