Beginning from Henry Ford who measured the pacing of assembly line and revolutionizing manufacturing, analytics have been used in business since the late 19th century. With computers helping in Decision support systems beginning in 60’s data analysis started gaining more attention. However, today the need to get the most value out of information has been on an upsurge than never before. The recent times being more volatile and uncertain for business environment, businesses of all types and scale are tasked with finding better ways to deliver improved results, increased profitability, and at lower cost.
Analytics or in simple language “science of analysis” helps a business arrive at an ideal decision based on existing data. There is no dearth of information for any business today. Most senior managers and CEOs are sitting on top of tsunami of information, but how many of them know who their most profitable customers are? Do they know their most cost generating customers? Besides, businesses are also expected to be more receptive and transparent to customers and stake holders. Thus Business Analytics and Business Intelligence started gaining importance in the last few years and many organizations have embraced this concept and they believe it to provide an assured competitive advantage. In fact, the terms Business analytics and Business Intelligence itself has become quite fashionable for apparent reasons.
Though business analytics and business intelligence are used interchangeably, there is a difference between them. Not going with the typical business definition, Business Analytics and Business Intelligence can be understood something like this: While Business Intelligence focusses on what happened and when it happened , Business Analytics tells you why it happened and whether it will happen again.
Smart organizations have always leveraged upon related data available in their hand. But with the kind of sophisticated technology and tools we have now, most organizations are trying to put the huge chunk of unrelated data available with them to work in their favor. These aggressive companies by embracing analytics and Intelligence for business have started redefining what “smarter organizations” mean.
There are some real time examples of what analytics could do to your business. Take for instance, Marriott International which has modeled its business based on analytics. Analysts suggest that Marriott reaps around an 8% revenue advantage compared to their competitors through its application of refined analytical models.
While the concept of analysis is simple and the conception is innate, the common leverage of analytics to drive business is just in its early stages. Despite interest in business analytics, most organizations have a relatively immature understanding of what “business analytics” is, and how it could create value for them. Therefore, for any business trying to use analytics for its competitive advantage, the time to understand and invest in Analytics is now.
Why now? Because the requisite technology and tools are available today and your competitor is probably leveraging it as a competitive advantage.
What’s the payoff here? Analytics helps in Customization, retention, pricing and fraud detection which are vital parameters for business success.
This leads to the need for qualified analytical professionals that has been on the rise now. Most organizations and analytics firm have started recruiting qualified analytics professionals for key roles in their companies. Quantitatively inclined and semi-analytics professionals are sought by many companies.
The day is not going to be far for a junior level or non-analytical professionals who perform day-to-day and routine work will be expected to understand basics in analytics to help make decisions. Businesses have started heading towards power house of Information – this means they have starting taking advantage of their single biggest resource: their data.
In this context, Great Lakes Institute of Management, the only Business School in India to have set up a dedicated Centre for Excellence in Business Analytics is also launching a Post Graduate Program in Business Analytics (PGP-BA) in its flagship campus at Chennai this coming May. Ranked among the Top 5 Analytics Program in India by Analytics India Magazine, this unique program combines the best of class room sessions and technology aided learning and groom Business Analytics & Business Intelligence (BABI) professionals.
View the details of the program at: http://pgpba.greatlakes.edu.in/
Sreelakshmi H K
Lead – Digital, Events & Editorial (BPR)