How Business Analytics Works and How It Can Help a Company?

Nowadays, data is the main asset for companies striving for success. Business analytics helps transform huge amounts of data into actionable insights that can significantly improve management, marketing, and operational processes. However, not all companies have the internal resources to implement and manage complex analytical systems. In such cases, data analytics outsourcing companies come to the rescue, offering professional solutions for working with data. In this article, we will consider how business analytics functions and what benefits it can bring to companies of any size.

What Companies Need Business Analytics And Why?

The main goal of business analytics is to support management decisions and organizational changes with high-quality, relevant, and objective data.

Here are three main tasks of business analytics:

1. Obtain data on the company’s operations in the form of numbers;
2. Process and structure this data — make it suitable for subsequent analysis;
3. Conduct data analysis — find patterns in the company’s operations and model forecasts for its development in certain conditions.

Business analytics is necessary for all companies that want to make high-quality management decisions. Only decisions based on facts can be high-quality. Business analytics is responsible for collecting and processing these facts.

It is important not only to collect data on the company’s operations but also to prepare them for managers:

1. Structure the data;
2. Analyze the data (identify trends and tendencies that affect factors);
3. Present the results of the analysis in a visual form;
4. Prepare recommendations on how to use this data to improve the company’s operations.

Through recommendations from business analysts, the company’s management receives relevant and reliable information about what is happening in the company and beyond. This approach helps make balanced and high-quality business decisions.

What Are The Areas of Business Analytics?

There are several main areas of business analytics:

1. Business analytics required for strategy development. Development strategy is the most important element of the enterprise management system. In order for the strategy to be of high quality, it is necessary to analyze a large amount of data and figures. This requires a business analyst.
2. He analyzes external marketing information. For example, how consumer demand changes, and how competitive forces affect business. 
3. Analysis of the company’s business processes. Business processes are a tool for implementing the enterprise strategy. Achieving the company’s strategic goals is possible only through the precise execution of configured business processes.
4. In order for the processes to meet modern approaches, take into account changes in the business environment, and successfully realize the internal potential of the company, they must be updated periodically. Such changes are also prepared by working with data.

This requires an analysis of the business process indicators:

• defining the factors influencing the processes and the nature of these factors (are they random or not);
• assessing the manageability of processes (Are they capable of consistently producing a high-quality result?);
• assessing their throughput (How many requests per unit of time can they process?).

Business analytics, which works with IT architecture data. Today, the key factor in the success of an enterprise is the high-quality operation of its IT services. To answer the question of whether the IT architecture of an enterprise meets business needs, you also need to turn to business analytics (analyze the composition and quality of the company’s information systems, the degree of automation and robotization of processes, and whether the level of the enterprise’s IT services complies with industry standards. 

Analysis of data related to the organizational structure. Successful people take part in creating a successful business. Conclusions about the success of the team are based on the analysis of data on the work of departments, divisions, and specific specialists. Here it is necessary to collect and analyze data on how the business is equipped with the required competencies, to determine the productivity of organizational units, as well as the actual level of qualification of the company’s employees.

What Does a Business Analyst Do?

A business analyst is a change agent within a company. He helps the business understand what needs to be changed in processes and other elements of the management system in order to increase the company’s efficiency.

Business analyst functions:

1. Understand stakeholder requirements for employees, company structures, processes, and the business as a whole.
2. Find the company’s problems and opportunities and tell the manager and managers about them.
3. Analyze problems and opportunities, and propose solutions (how to protect against the former and develop the latter).
4. Defend the developed solutions to the company’s management. To do this, you need to prepare graphs/reports and argue your position.
5. Organize the implementation of changes into life.
6. Analyze whether the changes have brought benefits to the business.
7. Define approaches to business analysis and business analytics in the company, select methods and tools, and understand how and for what they will be used.
8. Develop a strategy for developing business analysis in the company, distribute tasks among other analysts, and monitor their implementation.

So, business analytics is a part of business analysis related to the company’s performance indicators: it is used to obtain and process data, find patterns, make forecasts, and create business solutions. A good business analyst should be able to identify a company’s problems and opportunities, work with analytical methods and tools, and develop and implement organizational changes. As a rule, companies are inclined to attract such specialists to cooperation. One of the reliable data analytics companies that provides and staff augmentation services is N-iX.

Wrapping It Up

Business analytics is an indispensable tool for modern companies, helping not only to analyze current indicators but also to predict future trends. With the right approach to data, a business can optimize processes, increase profitability, and make more informed decisions. Cooperation with data analytics outsourcing agencies allows a business to focus on its key tasks, transferring complex analytical processes to professionals. If you are looking for such a company, we recommend evaluating the offers from N-iX. It specializes in such areas as AI, ML, data science, software engineering services, UI/UX, IoT and embedded software services, data analytics, etc.