What Is An Investment Banking Course? A Full Guide

The scope of Investment banking deals with areas like Mergers and Acquisitions, Takeovers Initial public offers, follow-up offers, Portfolio Management, and Risk Management whereas general banking deals with tasks such as Loans and Advances, Deposits, KYC Compliance, and providing everyday services. Investment Banking (IB) is one of the most adored jobs to be considered. Check here for the full guide to what is investment banking course. 

What is an investment banking course?

Ever seen typical Hollywood Wall Street movies towering skyscrapers men in homogenous dull suits hurriedly moving towards their workplace while holding a coffee in one hand and financial pink newspaper in the other with Bluetooth in their ears talking while, moving and also sipping coffee then reaching their workplace which is characterized by a frenzied activity of traders loudly talking at their phones, others staring at multiple big screens full of complex financial data and charts.

Well, if that fires your imagination and you want such a life then you should consider going to investment banking training. You will need a detailed guide to what is an investment banking course but before we understand the course, we should understand the difference between Investment banking and general banking.

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Difference Between Investment Banking and General Banking.

As a detailed guide to what is an investment banking course, we must inform you about the distinction between investment banking and general banking. However, Investment Banking and General banking both come under the umbrella of the term banking, they are very different from each other. They are like distant cousins who meet each other just at weddings but the former is more sophisticated than the latter. Here are some key areas of difference:

Target Segment- Investment banking is generally concerned with corporate, institutional Investors, and High net-worth individuals (HNIs) in some cases while general banking deals with common public and small-scale companies.

Risk- Investment Banking involves a greater degree of risk as it involves dealing with complex financial instruments and volatile capital and commodity markets whereas general banking is subjected to lower risks such as default risk.

Business Model- The main source of income in investment banking is through fees and Commision (It is a fixed percentage of the total profit earned) whereas in general banking. The main sources of income are interest and fees for day-to-day services such as Overdraft and ATM charges.

Thus, we say that General banking is a simpler, routine, low-profit, and low-risk kind of banking whereas Investment banking is a complex and high-risk high return kind of banking.

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What is Meant by Investment Banking?

Investment banking is a kind of financial service that aids corporations governments and financial institutions in their complex and vital financial processes such as raising money through an Initial Public Offer (IPO), Underwriting (providing guarantee) of shares and bonds, Mergers and Acquisitions(M&A) and Trading of Securities.

Investment Banking also includes helping clients with their investment decisions through detailed financial Analysis. Investment Bankers usually earn a substantial fee for providing their services and even for taking risks in the case of Underwriting.

Investment Banking is a highly lucrative but equally demanding career. As for a detailed guide to what is an investment banking course, we should inform you about the facilities offered by investment bankers.

Investment Bankers Provide the Following Facilities to Clients-

Underwriting of securities: Underwriting of securities involves providing a subscription guarantee related to the issue of securities. When a company issues an IPO or Bonds there is a possibility, that they won’t be fully subscribed to which will force the company to sell them at lower rates, so the underwriter provides the guarantee to subscribe to the issue in case it is not fully subscribed.

Mergers and Acquisitions: Investment bankers provide advisory services related to mergers and acquisitions through comprehensive market research and in-depth data analysis thereby helping corporations negotiate terms of agreement with potential partners or buyers.

Debt financing; investment Bankers provide their services related to the issuance of debt instruments such as Bonds and debentures and help their clients get sized loans, The advantage of debt over equity is that the ownership is not diluted thus providing the clients with the right amount of Leverage.

Equity financing; Investment bankers help companies in meeting their financing needs by assisting them in raising equity share capital through initial public offers (IPO), follow-up public offers, bonus issues, Splitting of shares, and equity buyback. Equity financing is preferable when a corporation does not want the additional recurring cost of interest and principal repayment. They advise their clients on deciding the proportion of debt and equity in their financing thus achieving the right Financing mix.

Trading and Liquidity Management-The Investment Bankers provide trading services to their clients. They trade securities on the client’s behalf according to the risk-taking capacity of the client. They also manage liquidity by buying and selling securities.

Financial Advice: Investment Bankers assess their client’s profile, objectives, and long-term Mission along with client’s the standing in their respective industry vis–a–vis competitors, and after a thorough assessment provide financial advice best suited to their client’s needs.

Research-Investment Bankers carry out detailed financial and market research for their clients. They assess the competitors’ strategies and help their clients make effective investment decisions.

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Invest Banking Clients

Through the detailed guide to what is an investment banking course, we should inform you about the types of clients you will deal with. Investment bankers serve a whole variety of investors/institutions, Investment Banking Clients can be broadly listed into three main categories:

Corporations: Investment bankers provide consulting and advisory services to corporations in areas of different financial niches. Investment banks help corporations with their IPO, share buyback, securities trading, and Mergers & Acquisitions.

Institutions: Investment bankers provide their expert services to institutions such as private equity funds and hedge funds helping these institutions manage investors’ money. The saying ‘money makes money’ had its genesis in investment banking as they help their clients make the most of their money.

 

Government: Investment bankers assist the government in deciding the right mix of sources to raise debt such as bonds, T-bills, and selling off public sector companies (Disinvestment) as disinvestment also helps in improving the efficiency of lagging PSUs as it brings private expertise.

Investment Banking Skills

There are certain skills required to become successful in investment banking. The following skills are developed during the course.

Financial Modeling: Investment Bankers build various financial models predicting equity market behavior with the aim of maximizing returns for their clients so a person going for investment banking training should be comfortable with numbers and statistics.

Business Acumen: Investment bankers analyze their client’s business risks and opportunities and help them come up with a proper plan to deal with risks and exploit the opportunities thus an investment banker must have at least a basic understanding of business fundamentals and strategies.

Communication: Investment bankers give a lot of presentations to their clients to pitch their services and explain complex data, statistics, and metrics they also negotiate the terms of mergers and acquisitions on behalf of their clients which usually involves big numbers so an investment banker must have good communication and presentation skills.

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Detail Orientation: Investment bankers have to analyze key financial indicators and comprehensive legal documents. Since we live in a globalized world, they must keep track of various national and international political events as they might have a bearing on the financial sector so a good Investment Banker must have an eye for detail.

 

Commitment: Investment banking requires long work hours and keeping in touch with constant updates of national and international financial and political situations as they have a direct bearing on capital markets.  In Wall Street, they have a saying ‘Money never sleeps’ So the guy managing money can’t expect much sleep either.

Now that we have understood what investment banking is. Let’s delve further into the subject with a detailed guide to what is an investment banking course.

Investment Banking Courses

Investment banking courses are designed to provide students with an in-depth knowledge of the investment banking industry. Investment banking programs typically include knowledge about fields such as capital markets, risk management, Porfilio management, valuation, regulatory framework, and case studies.

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Investment Banking Course Curriculum.

However, the expanse of the curriculum varies slightly from institute to institute, and the time duration of the course, as a detailed guide to what is an investment banking course, we must touch upon the curriculum in detail. The following topics are covered.

Introduction to Investment Banking-It gives a heads up to the students about the course and makes them understand various facets of investment banking that will be covered during the course. It covers the different divisions within an investment bank and their responsibilities.

Financial Statement Analysis: The Investment banking program teaches you how to read and analyze financial statements such as balance sheets and profit and loss statements. It tells the students how to make sense of different financial ratios which help ascertain the profitability, liquidity, and solvency of a business. The ratios are also used as a key tool in competitor analysis.

Capital markets: Good investment banking training will teach you about capital markets that form the basis of making investment decisions. It teaches students about the workings of equity as well as the bond markets as they are the core financing and investment options for corporations and investors respectively.

 

The importance of capital markets can be ascertained from the fact that the size of the Global equity market is 107 trillion dollars whereas the size of the global bond market is 133 trillion dollars.

Valuation: The Investment Banking course includes various valuation methods that help to determine the financial value of the company. Students are taught Comparative Company Analysis (CCA) methods such as discounted cash flow method, Market capitalization, and EBITDA method.to determine the actual value of the company. The metrics are analyzed in relation to competitors and market leaders of the respective industry.

Derivative Markets: Investment banking students are also taught derivates. They are complex financial instruments. Derivates are essentially contracts between two parties in which the value of the derivative itself is dependent on the value of an underlying asset (in layman’s terms, a derivative is like a politician’s son, his actual value is derived from the position of the underlying asset, his father), called as weapons of mass destruction by Warren Buffet.

The derivates were single-handedly responsible for the Global Recession of 2008 or the Sub Prime Crises. These are highly risky financial instruments such as swaps, forwards, futures, and options. Derivatives are preferred by investors who can handle high risks in anticipation of high returns.

International Finance- The International Finance module involves teaching students how to analyze foreign markets’ potential, make cross-border investments, and deal with foreign exchange risks. It also touches on cross-border mergers and acquisitions and international statutory requirements for investments.

Anti-Money Laundering: As a detailed guide to what is an investment banking course, we must touch upon the most pressing issue of money laundering. Money laundering is done through a web of complex financial transactions.

Investment Banking courses have started including topics related to money laundering, so the investment banker understands the legality related to different kinds of investment products as various governments and Interpol started monitoring shady financial transactions that are aimed at funding illegal activities and avoiding tax.

 

Eligibility Requirement To Enroll in Investment Banking Course

As a detailed guide to what is an investment banking course, we must discuss the Eligibility requirements to get into various Investment Banking courses.

Investment Banking Certification CoursesThere is no prerequisite for joining this type of course. But it is advisable that the candidate has passed class 12th.
UG/PG Diploma in Investment BankingA person who has passed the 12th standard is eligible to get admission into an undergraduate diploma, whereas most postgraduate PG Diplomas require a graduation degree in a relevant field.
Undergraduate Investment Banking Degree CoursesCandidates who have completed 10+2, preferably with a Commerce background from a recognized board, can pursue UG-level investment banking courses. Some Universities conduct separate Entrance Exams.
Postgraduate Investment Banking Degree CoursesThe student should be a graduate in Management, commerce, Economics, and mathematics (In some cases) and is eligible for the Postgraduate Investment Banking course. Some Universities might conduct an entrance exam.

 

We have mentioned basic Eligibility criteria for various investment banking courses however there are certain institutes and universities that conduct their own entrance exam in addition to the above-mentioned criteria, while for postgraduate investment banking courses, some universities ask for CAT (conducted by IIM’s), MAT or a XAT (conducted by Xavier Insitute) score.

International Universities ask for a certain minimum TOEFL OR IELTS score. Some of the top international universities may ask for SAT scores (in case of Undergraduate courses or GRE/GMAT scores (in case of Postgraduate courses). Most of the reputed international universities also ask for a few years of relevant work experience before giving entry into postgraduate courses.

Investment Banking Course Fee.

As we are providing a detailed guide to what is an investment banking course, we must share the fee structure of different types of investment banking courses:

Certificate courses: The short-term certificate courses are available at nominal prices starting from a few hundred bucks at Udemy while going up to twelve thousand rupees in Coursera.

Diploma courses: The six-month to one-year diploma courses are available at affordable prices. The pricing usually is around Rupees fifty to sixty thousand for most of the diploma courses. However certain Executive one-year diploma courses can be priced at two-three Lakhs.

 

Degree course: The fees for Degree courses vary based on whether the college of your choice is funded by the Government, or it is a Private Funded college. For Undergraduate Degrees such as B.com in Investment Management, Government or trust-funded colleges charge fees of around rupees twenty to thirty thousand per semester whereas most private colleges charge rupees fifty to sixty thousand per semester.

The Fees for Post Graduate Degree Courses are a little more expensive side. It is around sixty to eighty thousand rupees per semester for Government funded colleges whereas a few lakhs per semester for Private Colleges.

International Degrees: The cost of an International Degree Largely depends on the country you choose as well as the institute. The undergraduate degree fees in Western countries such as the US, UK, and Canada are around twelve to twenty lakhs per annum. Postgraduate degrees cost around 12-15 lakhs per year.

There is also a requirement by certain countries to show a minimum bank balance (to cover the cost of living) before granting admission. The living cost is around seven to eleven lakhs per year.

Careers and Prospects

A detailed guide to what is an investment banking course must inform you about the various career prospects after pursuing a course. Following are the career options for investment banking students.

Investment Banker: An Investment Banker mostly deals with IPOs, Underwriting, Mergers and Acquisitions, and other financial advice. The investment banker, through his expert advice, assists the companies in deciding the best source of financing that aligns with the company’s long-term vision and mission.

Financial Analyst: A Financial Analyst is responsible for analyzing complex financial data and making models to help clients make better investment decisions.

Risk Analyst: A Risk Analyst tries to determine the risk and return paradigm of a project or an Investment decision and suggests the best course of action as per the client’s risk-taking ability.

 

Portfolio Manager: A Portfolio Manager manages various investments of the clients. He decides on what proportion to allocate to debt or equity, within a country or overseas, and the kinds of sectors in which clients’ money should be invested, whether to invest in derivatives or commodities. The portfolio manager forms an asset allocation strategy according to the risk profile of the client.

Corporate Finance Analyst: A Corporate Finance Analyst provides his services related to Budgeting, Restructuring, and various financing decisions. He is also responsible for analyzing financial statements such as profit and loss statements, Balance sheets, and cash flow statements as well as performing ratio analysis.

Salaries and Perks

As a detailed guide to what is an investment banking course, it would be incomplete without mentioning the salaries and perks for IB Professionals, which are indeed attractive however, it will also depend on factors such as where you acquired your degree or diploma and the size of the organization you are working for.

The entry-level salaries for the investment banking profession typically range from 8-12 Lakhs per annum. The Bonus element is also quite decent and goes up 3-4 lakhs per annum for an entry-level professional. There is generally a substantial proportion of variable income in the form of incentives for high-performing employees. Entrepreneurs who start their own portfolio management services can earn a great deal of income from commission.

FAQs

1. Does completing an IB degree provide you with a guarantee of a job?

IB courses are in high demand and if you complete your course at a good institute and acquire relevant skills. You are most likely to land a decent job.

2. What are the Growth Prospects in the field of IB?

Growth Prospects in IB are very attractive, high-performing Investment bankers can easily rise to CFO (Chief Financial Officer) or those apt in portfolio management can even start their own Hedge Fund.

3. I have an Arts Graduate. Can I make a career in Investment Banking?

However prior knowledge of finance and Economics is preferable but if you have good analytical skills and an eye for Numbers you can make a career in Investment Banking.

4. Are there any areas related to investment banking that are not covered by this article?

As a Detailed guide to what is an investment banking course we have tried to be as comprehensive as possible but it’s not possible to cover the whole information in one article, so we suggest doing further research if you want more details.

Conclusion

‘Greed is Good’ is a famous quote from the 1987 movie ‘Wall Street’, it beautifully summarizes the qualities that are required to make it big in the game which means that self-interest, the urge for more profits, willingness to put in long work hours and having a stomach to take risks are the qualities that are most sought after in this industry. If you have these qualities coupled with good analytical skills, we recommend you go on investment banking training. We hope that a detailed guide to what is an investment banking course was helpful in providing you with the information you were looking for.

A Guide To The Data Analytics in Project Management

We live in the 21st century. The world around us is constantly changing and data has become unquestionably the most valuable asset. Data is essentially the information that is stored or transmitted electronically. Everything we see on computers and the web from YouTube to Google searches to emails to Excel sheets is a form of data. It is essential for everyone be it individuals, businesses, or governments and the demand for data is rising exponentially. This article is a guide to data analytics in project management. Must read to gain in-depth knowledge about it.

A guide to data analytics in project management

Most of the Business decisions are taken based on data and we just can’t get enough of it. It is widely believed that future wars will be fought over data and with the help of data, but raw data is like raw food, it’s not of much use unless we perform some actions on it.

In itself is just a set of numbers or words and to make sense of it we need to analyze and evaluate it so that raw data becomes useful and actionable information and this is done with the help of data analytics.

Here is a guide to Data Analytics and Data Science

What is Data Analytics?

Data analytics is the process of collecting, evaluating, processing, and analyzing data to find correlations, trends, and insights that can be translated into informed decisions.

It is important for organizations to understand the effectiveness of their past decisions in terms of measurable or quantifiable indicators as well as help them to understand consumer behavior in a better manner. It essentially provides scientific backing behind a decision. Data Analytics usually involves the following steps:

Define the Question-Defining the questions means deciding on what exactly one wants to know. It is very important as it gives direction to the whole process of data analytics.

Data Collection– Data collection involves gathering data from online platforms, online surveys, Excel sheets, and databases. It is necessary to make sure that data is relevant in relation to the questions the organization aims to explore with the help of data analysis as the kind of data used will have a direct bearing on the conclusions.

Cleaning the Data-Cleaning of data is making data accurate and free from errors. This process involves looking for missing values, removing inconsistent values, getting rid of duplicate values, identifying superfluous data, and deleting it. The Cleaning of data is essential if want to get credible results.

Analyse Data– This step involves the use of various techniques and statistical tools to explore and understand the data in a more cohesive manner.

Data Visualization– After analyzing the data, the data is presented in visual forms such as pie charts, bar graphs, and dashboards. Data visualization helps in sharing large amounts of complex data into easily interpretable information.

Data Interpretation and Decision Making-Data Interpretation involves reviewing the data. It helps in understanding patterns, trends, and inter-relation between different variables so that concrete conclusions can be drawn from the data and effective decisions can be taken.

 

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What is Project Management?

Before we understand the use of data analytics in project management, let us first understand what is meant by project management. Project management is a process through which the project goals are achieved with the available resources.

It involves detailed planning and effective allocation of company resources with the goal of solving the problem within the given deadline. Project Management is done in the following steps.

Project Definition– It defines the scope of the project and determines its objectives and limitations. The project definition should meet the expectations of all the stakeholders such as the client, the company, and the employees.

Project Planning– it involves a wide range of activities such as budgeting, scheduling, organizing, and distributing work. The roles of different individuals are defined and milestones are set.

Resource Management– It involves allocating and managing resources to achieve objectives set in the project definition. It is a very important part of project management as the resources are scarce most of the time and there is a need to make optimum utilization of resources to meet project management goals.

Risk Management– Risk Management deals with figuring out and analyzing the potential risks associated with the project and also providing a roadmap to deal with such risks. There are different types of risks associated with a project such as financial risks, operational risks, or market risks. Risk management helps in developing strategies that will reduce as well as hedge the risks the project is exposed to.

 

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Project Execution– Project execution is the most important step in the project management process. It involves rolling out the project. It involves coordinating the team, monitoring progress, and coming up with solutions to meet the project objectives. Effective planning can help in smooth project execution.

Communication and Stakeholder Management– Communication is the key to the successful implementation of any project. It is necessary to have an unhindered and clear flow of information to team members so that they understand their roles and execute the project properly. Clients should also get timely information about the progress of the project and milestones achieved so that they can suggest changes if they require any.

Quality Management– Quality Management deals with maintaining standards in terms of project delivery. The quality could be assessed in the form of certain predefined criteria and regular quality checks to make sure that the quality of the project is not compromised.

Project Closure-It is associated with the completion of the project which usually aligns with achieving objectives that are set out in the project definition. It also involves the evaluation of problems that were faced during the implementation of the project.

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Data Analytics in Project Management

The project Management process involves interpreting and analyzing data for different objectives such as risk management, project execution, and Quality Management.

Data Analytics can be used to break down complex data with the help of charts and graphs and uncover new patterns that can help in understanding the behavior of different variables thus data analytics becomes the bedrock of project management. Data Analytics is used in project management in the following ways:

 

Visualization-Data Analytics is of great use to project managers as it helps in simplifying complex and large amounts of data into easily understandable visual representations. It becomes easier to identify patterns with the help of visual representation as compared to identifying them on data tables.

Different types of visual representation tools are used for different types of data for example, Bar charts are used for discrete values such as expenditure by customers whereas line charts are usually used for showing data over a period of time.

Performance Monitoring-Data Analytics plays a key role in enabling the stakeholders to monitor the performance of the project. Data analytics helps in figuring out the key variables that are essential in meeting the goals set in terms of Key Performance Indicators (KPIs) so the performance can be measured in a quantifiable manner and corrective action can be taken in the areas the performance is lagging.

Risk Management– Data Analytics has a special role when it comes to assessing and mitigating risks. Data analytics can be used for risk identification, risk assessment, risk mitigation, and risk monitoring by analyzing large sets of historical data and identifying patterns that are leading to an increase in risks.

For example, In the financial industry Income data of past customers could be analyzed to identify the customers who could default on their loans.

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Resource Optimization– Data Analytics plays a key part in resource optimization as resource optimization is one of the most important goals for any project manager. Data Analytics can be used to find out the areas where resources are not fully utilized and any bottlenecks that are occurring such data can be used for making more efficient policies.

It can also be used for predicting demand so that inventory and working capital are managed accordingly. For example, Bar charts are used for representing discrete values whereas.

 

Forecasting and Planning-Forecasting is one area where data analytics plays a key role with the use of tools such as Time series analysis. Time series analysis to find out patterns in historical data about sales or inventory and thus make informed decisions. Machine learning algorithms could be used to identify patterns in data and identifying such patterns will provide vital information in planning.

Tracking Progress– Data analytics is very important in tracking the progress of the project by using the data analytics to identify the main milestones and Key performance indicators (KPIs), Continuous tracking of these milestones will give insights that could be vital inputs in taking corrective action if required.

Stakeholder Management– For any type of project there are different kinds of stakeholders such as customers/clients, the company’s management, and the team members.

Data Analytics makes it easier for each one of them to track timely developments in the project and take a logical course of action. For Example, Data regarding the performance of team members could be analyzed and tasks could be given according to their efficiency in different areas.

Prescriptive Analysis-Descriptive analysis uses past data to identify recurring patterns and general trends whereas predictive analysis is used to predict future performance with the help of data.

Prescriptive analysis uses both descriptive and predictive analysis and goes beyond just finding trends and aims to suggest the best course of action for the project manager thus making the decision-making process a lot less complex.

Managing Project Portfolios-Data Analytics can be very useful for project managers when they are dealing with multiple projects at the same time. Data analytics will make it easier for the managers to identify the projects that are lagging behind in deliverables so a project manager can divert more resources and time to such projects analyzing data from the different projects will also help in identifying trends and the kinds of project that require any special attention and resources.

 

Project Integration across various disciplines– Data Analytics could guide project managers with the help of Project integration as most of the modern-day projects are not department-specific and require the expertise of various departments. By integrating data from various departments, a project manager can get a more holistic view of the project and make more efficient decisions.

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Quality Control-Use of Data Analytics is of great significance when it comes to Quality control as providing top-notch quality is the main priority for every project manager. Data Analytics could be used to identify key variables that could measure quality and could be used to track any improvement or decline in quality over time and take necessary steps to address any issues related to the decline in quality thereby optimizing the quality control process.

Measuring the Success of the Project-Data analytics provide clear quantifiable answers about the success of the project. Data indicators related to costs, logistics, and different sub-areas could be analyzed furthermore customer satisfaction levels could also be ascertained with the help of data collected from surveys thus giving the project manager a clear idea about the level of success of the project.

Thus, we can say that data analytics is one of the most integral parts of project management as it plays a key role in a whole array of areas ranging from project planning to measuring customer satisfaction. It will become very difficult for project managers to deliver on project milestones without the use of data analytics in project management.  The comprehensive application of data analytics makes it an indispensable resource for project managers.

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Tools Used for Data Analytics in Project Management

There are a lot of tools of different kinds that are used for data analytics in project management. Such tools simplify the process of data analytics. Some of the most popular tools for data analytics are-

Spreadsheet Software-Spreadsheet software is one of the widely used and easy-to-understand project management. Software such as Google Sheets, Microsoft Excel, Apache OpenOffice, Apple Numbers, and LibreOffice are a few of the popular tools used for data analytics.

Spreadsheet tools help in breaking down data in the form of pivot charts, bar graphs, and pie charts. It also allows the users to apply different kinds of formulas to data so that they can make more sense of the raw data.

Business Intelligence Tools-Business Intelligence tools play a key role in collecting, analyzing, identifying patterns, and visualizing with the help of data. They also provide interactive Dashboards that make it more convenient for the user to understand and use the data. Business intelligence tools also provide comprehensive reports that can give a vital grasp of data.

The tools also allow you to run different kinds of queries for more customized needs. Some of the most popular business intelligence tools are Microsoft Business IB, Tableau, SAP Business Objects, IBM Congo Analytics, and Qilk Sense.

Statistical Analysis Software- These are specialized programs that are meant for users who want to do an in-depth and more complex statistical analysis. They have very powerful libraries which help in dealing with large data sets.

Since they are capable of working on large data sets, they can also be used for financial Modelling and building predictive models. Such tools are used by Business Intelligence Unit departments of various corporations. Some of the most popular statistical analysis software are SAS, Minitab, SPSS, R, and JMP.

Data Visualization Tools-Data visualization tools present data in a  visually appealing and in a more interactive manner thus helping the project managers to comprehend complex data easily and making data more usable.

They provide data in interactive visual formats such as tables, pie- charts, Bar Graphs, Histograms, and Infographics. The engaging nature of the data in the form of highly interactive visuals thus helps in better communication and decision-making. Popular data Visualization tools are Tableau, Fusion Charts, QlikView, Highcharts, plotty, and D3js.

 

Machine Learning Framework-Machine learning frameworks are highly sophisticated and the most advanced tools of data analytics in project management. Machine learning models are advanced in the sense that the algorithm is trained in a manner that it can identify trends based on past data and build the model.

The model is not static but dynamic since it can reflect and adapt to the changes in data thus making a more precise predictive analysis along with optimizing project schedules. Some of the most popular machine learning frameworks are Py torch, Tensor Flow, Theano, Keras, Scikit learn caffe, and Mx Net.

Text Analytic Tools-Text Analytic tools are a unique kind of application that is used for non-numeric text data. Text Analytic tools are used to make sense of unstructured data. These tools make use of the technique of Natural Language Processing (NLP).

These tools can be used to extract meaningful information from the text data such as identifying the sentiment of the text, i.e. whether the text is written in a positive, negative, or in objective manner in addition to the sentiment analysis these tools can also identify the key highlight or the main theme of the text. Such tools are also capable of extracting vital information from the text such as names or addresses.

These types of tools are mainly used for customer feedback analysis and social media monitoring. Some of the commonly used text analytic tools are Google Cloud Natural, Language API, General Architecture for Text Engineering, -GATE, Datum Box, KH Coder, ODA Miner Lite, and Text Minning extension.

Data Integration and ETL (Extract, Transform, and load) Tools-Data Integration Tools help in extracting data from various different sources and place the combined data in a single place. These tools usually follow a three-step process which consists of extracting the data from different sources, then sanitizing the data and removing irrelevant and superfluous data, and finally loading the sanitized data at the preferred location.

 

Data integration is a very important part of data analytics since there are vast amounts of data available to any organization but such data is usually scattered over different documents, Data Integration Tools help in getting all the appropriate and workable data in one place thus providing the project managers the right kind of inputs to base their decision making on. Some of the popular Data Integration Tools are Hero Data Matillion, SAS, IBM Infoshare Datastage, Oracle Data Integrator, and Informatica Power Center.

Though, a lot of Data Analytics tools are available in the market for applying data analytics in project management the right tool for any company or user will depend on a variety of factors such scale of the organization, the complexity of data, and the objective of the organization thus depending upon the requirements a project manager can use any single tool or a combination of above-mentioned tools to achieve his goals.

FAQs

How much of a project efficiency could be improved by applying data analytics in project management?

The use of Data analytics in project management can improve project efficiency by many folds but extra care should be taken in choosing the right kind of data analytics tool or a set of tools. Such tools should be chosen which are tailored according to the project.

Data Analytics is performed on past data but the business environment is changing every day so can we completely rely on the use of data analytics in project management to achieve project objectives?

There are various tools such as machine learning tools which not only detect past trends but also make dynamic models that can adapt to changes in data and identify the most subtle trends However, data analytics has some limitations as data analytics tools and their analysis do not take into account extreme events such as natural disasters and political turmoil which can affect the project.

Is it viable for a small business to use data analytics as small data sets are available?

Data analytics is a scientific way of analyzing trends and risks associated with a project it will be equally imperative for a small business to use data analytics in project management to get better at decision making however small business would not need very expensive sophisticated data analytics tools for small business basic data management tool will be enough.