Business analytics is a data driven decision making approach that uses statistical and quantitative analysis along with data mining, management science, and fact-based data to measure past business performance to guide an organization in business planning and effective decision making. It is also used to predict future business outcomes with the help of forecasting and predictive modeling.
In this age of technology, massive amount of data are collected by companies. Successful companies use their data as an asset and use them for competitive advantage. Business Analytics is helping businesses to make informed business decisions. It is also helpful in automating and optimizing business processes.
Successful business analytics depends on the quality of data. Skilled analysts, who understand the technologies and their business, use business analytics tools as an organizational commitment to data-driven decision making.
Business analytics makes extensive use of data, statistical analysis, and data mining to explore, investigate and understand the business performance. Through data, business analytics helps to gain insight and drive business planning and decisions. The tools of business analytics focus on understanding business performance based on the data and statistical methods. It also uses predictive modeling and predictive analytics to predict and drive future business decisions. It is closely related to management science.