Business analytics is the process of transforming data into insights to improve business decisions. Some of the tools used to generate insights from data include data management, data visualization, predictive modeling, data mining, forecasting simulation, and optimization. Nonetheless, while business analytics relies heavily on statistical, quantitative, and operational analysis, the end result is the creation of data visualizations to present your findings and shape business decisions. For this reason, balancing your technical background with strong communication skills is imperative to do well in this field.
At its core, business analytics involves a combination of the following:
- identifying new patterns and relationships with data mining;
- using quantitative and statistical analysis to design business models;
- conducting A/B and multi-variable testing based on findings;
- forecasting future business needs, performance, and industry trends with predictive modeling; and
- communicate your findings in easy-to-digest reports to colleagues, management, and customers.