What Is The Scope of Business Analytics?
What comes to mind when you think of business analytics? Is it the analysis of a business? First and foremost, yes! Business analytics was introduced in the 19th century by Fredrick Winslow Taylor, an American mechanical engineer, and Henry Ford, an industrialist and business magnate. At that time, business analytics proved to be a scientific management technique for improving efficiency in the engineering industry.
However, after the advent of computers, it was used in decision support systems as a software application for various management applications in businesses as we know them today. Since then, the scope of business analytics has expanded to a whole new level, opening up endless possibilities.
Is Business Analytics Ushering And Beyond?
Euphorically, business analytics (BA) is an extremely popular topic right now. You’d be surprised to know how the landscape and scope of business analytics are expanding daily as technologies evolve in organizations around the world. Business analytics encompasses a wide range of users and customers, a variety of products, and management service applications across all geographies.
Global Business Trends forecast the market size and scope of business analytics will reach a share value of $60.49 billion by 2027, with a compound annual growth rate (CAGR) of 11.2%, compared to a market size of $27.20 billion in 2019. Cheers to the future! The use of search-based analytics to create business analytics reports is on the rise.
If you can track these numbers, then you have certainly mastered business analytics! But what do these numbers mean to you? What’s in it for you? Is the uptick in the business analytics market impacting your career? Let us dive deeper to learn more about the scope of business analytics.
The Scope Of Business Analytics In The Industry
Human decisions can, in many cases, cause a business to thrive or shrink. However, when human decisions are supplemented with analytics, it leads to fact-based management and supports decision-making. Small and large companies can increase their business planning insight and achieve better financial performance by combining it with analytics.
- According to a study, the increasing need for identifying customer behavior will drive the growth of the global business analytics market, which focuses on predicting future trends and improving operational efficiency and productivity. Also, the scope of business analytics and its future growth determine the business opportunities in various industries and sectors.
- With increasing automation and cloud-based technologies, businesses are looking for a real-time, data-driven solution for decision-making. This type of analytics helps make informed decisions that directly impact the business. Considering these market trends, various global companies are also planning to increase their spending on analytics as using business analytics is a very effective way to make a difference in an organization.
The field of business analytics is quite broad and encompasses a number of activities and applications.
What is Business Analytics?
It refers to a set of capabilities, technologies, practices, and methodologies that transform data into purposeful business insights.” There seems to be a close relationship between business analytics and design thinking in terms of process. It follows a continuous, iterative exploration and investigation of past business performance to gain insights and drive business planning.
How Does Business Analytics Work?
It typically involves the following steps:
1. Defining the problem: The first step is to clearly define the problem or opportunity that the business is trying to address. This can be anything from reducing costs to increasing revenue.
2. Collecting data: The next step is to collect relevant data. This can include data on customer behavior, sales figures, inventory levels, and other relevant metrics.
3. Cleaning and processing the data: Once the data is collected, it needs to be cleaned and processed to remove errors, inconsistencies, or missing values.
4. Analyzing the data: The next step is to analyze the data using statistical methods such as regression analysis, clustering, and decision trees. This allows patterns, trends, and relationships to be identified in the data.
5. Communicating the findings: The insights gained from data analysis must be communicated to decision-makers in a clear and understandable way. This can be done through visualizations, reports, or presentations.
6. Making decisions and taking action: Finally, the insights gained from data analysis are used to make decisions and take action. This may involve implementing new strategies, optimizing existing processes, or making other changes to improve business performance.
The Segmentation of the Global Business Analytics Market
By component:
It is divided into business analytics as a solution or as a service component. Business analytics solutions refer to software and tools that enable organizations to collect, analyze, and visualize data to gain insights into business performance and make more informed decisions.
Business analytics services are professional services provided by analytics experts that help companies use data to gain insights and improve decision-making.
By deployment mode:
A distinction is made between cloud and on-premises deployment. Cloud computing most commonly refers to the ‘traditional’ or ‘public’ cloud, a model in which a third-party service provider makes computing resources available on demand.
‘On-premises’ refers to those companies that house in their own facilities and maintain themselves, also called private data centers. A hybrid deployment is another approach that allows enterprises to bolster on-premises infrastructure with online servers, such as AWS.
By enterprise size:
Small and medium-sized enterprises (SMEs); large enterprises.
By business function:
Human resources; Finance; Operations; Sales; Marketing.
By industry:
Retail; Manufacturing; Government and Public Service; Media and Entertainment; Transportation and Logistics; BFSI; Telecommunications and IT; Healthcare and Life Sciences; Tourism and Hospitality; Other (Real Estate, Education, Energy, and Utilities).
By region:
- North America: United States; Canada; Mexico
- Europe: United Kingdom; Germany; Spain; Italy; France; Rest of Europe
- Asia-Pacific: China; Japan; India; South Korea; Southeast Asia; rest of Asia-Pacific region
- Latin America: Brazil; Argentina; Rest of Latin America
- Middle East and Africa: GCC countries; South Africa; Other MEA countries
The region with the highest growth rate in the business analytics market is Asia Pacific with the highest CAGR during 2018 – 2028. The region with the largest share in the business analytics market is North America with the highest share in 2021.
Did you know
Key market players that vastly expand the scope of business analytics include:
Oracle Corporation, Microsoft Corporation, SAS Institute Inc, Cisco Systems Inc, Information Builders, Tableau Software LLC, SAP SE, IBM Corporation, Sisense Inc, Yellowfin International Pty Ltd, Domo Inc, Infor
Also Check:
The Scope Of Business Analytics Technology
Technology is a constantly evolving process, and so is the use of information and the generation of data. Businesses generate a huge amount of digital data every day. In 2020, people consumed a whopping 64.2 zettabytes of data, and the numbers will continue to skyrocket in the future.
This presents many opportunities for companies to leverage raw data to achieve their business goals, such as reducing costs, improving customer satisfaction, and identifying new opportunities. A broader scope of business analytics technologies forms the base for expanded business opportunities.
Let us understand these technologies:
Search-based discovery: Have you searched Google for a bus, train, or plane ticket from A to B? And did you come across advertisements for the same on the next web page you opened? Well, this is a prime example of search-based discovery tools via the Google search engine that retailers or e-commerce companies which sell you tickets online, use to optimize their product offerings and marketing efforts by understanding what you are looking for.
2. AI and machine learning: Fraud detection in financial institutions is a good example of AI and machine learning. If you are suspicious of a banking transaction through your account, financial institutions can use machine learning algorithms to analyze transaction data and detect anomalies in transaction data to identify potential fraud and prevent fraud in real-time.
3. Cloud computing: If you work for a large enterprise that has to deal with big data, cloud-based business analytics helps you process the data, and generate reports on your company’s key performance indicators (KPIs), such as annual sustainability metrics related to social, environmental and economic indicators, and helps your company make data-driven decisions and improve its overall performance.
4. Predictive analysis: It can be used to optimize inventory levels in a business by predicting future demand based on factors such as past sales, customer behavior, and market trends. In this way, companies can ensure they have the right products in stock at the right time, while minimizing inventory costs.
5. Data automation: Data automation technology automatically collects data from various sources on the Internet and is best suited for data governance, data protection, and compliance.
The shift to these data-driven technologies has proven to be both necessary and possible for business sustainability. During the Covid-19 pandemic, companies that quickly adapted to the evolving technological standards of real-time, fact-based business analytics have proven to be industry leaders in times of change.
The Scope Of Business Analytics Software Tools
Many companies still do not know how to analyze big data, even though the success of these companies depends heavily on these massive amounts of data. Therefore, the data-driven technologies mentioned above are being translated into usable software tools.
Business analytics software tools are a type of application software that retrieves data from one or more enterprise systems and aggregates it into a repository, such as a data warehouse, for review and analysis. These tools are statistical in nature and combine quantitative and qualitative data from various business systems.
These applications are equipped with features that enable efficient data collection, analysis, and presentation in real-time. They also provide organizations with a holistic view of key insights that improve efficiency, productivity, and profitability.
Here’s a List of the Top 5 Business Analytics Tools:
1. Excel: Does Excel sound like a homemade software you have heard about since you were a kid? Well, Excel is the first and most versatile tool used for business analytics. It is one of the easiest and cheapest tools to get. It has features like form building, PivotTable, VBA, etc. that work with both small and large data sets. To learn more, read the article about the benefits of learning advanced Excel skills.
2. SAS: Another robust and easy-to-learn analytics tool is the SAS suite. It is a statistical tool that is best suited for data mining. It uses machine learning, artificial intelligence, and automation technologies to simplify and solve analytics requirements in less time.
3. Microsoft Power BI: One of the most popular tools for business analytics was developed by the tech giant, Microsoft. It is a cloud-based business analytics service known as ‘Power BI Services’ that offers interactive visualizations, data discovery tools, and business intelligence capabilities. It allows its users to identify trends and generate reports in real-time. There is also a desktop-based interface called ‘Power BI Desktop’.
4. Tableau: It is a functional real-time data discovery and data cleansing tool that performs analytics on current and historical data in seconds. Its interface creates customizable data visualizations, maps, and dashboards.
5. Qlik Sense: Qlik Sense, a next-generation analytics tool developed by Qlik, is a cloud-based analytics software. It is a data discovery and visualization tool that enables organizations to create dynamic dashboards and reports.
The Scope Of Business Analytics Training
Do you want to help demystify data and strengthen your analytical skills? With the importance of digitization in every sector, the need for business analytics has multiplied. There are a plethora of institutions offering career-oriented business analytics courses and programs, from beginner to advanced, from wherever you want to start and build your career to expand your business analytics knowledge through education.
- There is no age limit to start your education in business analytics and become a professional. The courses are open to everyone. Whether you are a high school student (grade 12), undergraduate, recent graduate, or graduate student, you have the freedom to attend them.
- It is more lucrative and beneficial to your career as a working professional who wants to further your professional education to expand your opportunities in this field.
- If you are self-employed, an entrepreneur, a business owner, or a startup aspirant who wants to use data analytics in your business, training in this field is desirable.
- Certification courses are preferred by most professionals, regardless of their area of expertise, sector, field, or years of experience. Short-term certification courses add value to senior-level professionals by helping them keep up with ever-evolving trends and technologies, and can increase their salaries.
- You can also learn this subject as a specialization course in BBA/Bachelor of Business Administration and MBA/Master of Business Administration.
- Part-time certificate and diploma programs can also help you expand your knowledge in this area.
To become a successful business analytics professional and compete in the world of Big Data, you need to learn some technical and non-technical skills. Learning these basic analytic skills will provide you with a solid foundation for your career.
Core Skills
- Inquisition: You have to stay current and in touch with changes in the industry and be naturally curious to learn and figure out how things fit together.
- Critical thinking: The ability to filter the necessary data is a skill in itself. As a critical thinker, you will be able to analyze and highlight the data that can have a positive impact on an organization.
- Problem-Solving: If you are able to connect the dots of problem findings, you are a problem solver.
- Visualization: To create value from obscure data, data visualization is an important skill.
- Communication: It’s a fundamental skill for presenting results clearly and concisely and ensuring your clients understand your recommendations at work.
- A big-picture thinker: You need to be able to handle complex data, dig into the details and use them to develop strategies and tactics to improve your business.
Technical Skills
It is important to have both a conceptual and practical understanding of programming languages and tools to turn data sources into concrete solutions.
The most important tools for business analysts are:
- SQL: This is a programming language for databases and one of the most important tools in an analyst’s toolbox.
- Statistical languages: R and Python are two programming languages widely used in analytics for statistical analysis and general programming, respectively. Knowledge of either of these languages can be beneficial when analyzing large amounts of data but is not essential.
- Statistical software: Although the ability to program is helpful for a career in analytics, one does not necessarily need to be able to write code to work as an analytics professional. Aside from the languages mentioned above, statistical software such as SPSS, SAS, Sage, Mathematica, and even Excel can be used in managing and analyzing data.
Proper business analyst training helps in learning these tools with the help of cloud-based software, hands-on training, and online mentors from all over the world.
The Scope Of Business Analytics Career
Business analytics is undoubtedly a good career to choose. According to LinkedIn, there are 23.3 million people pursuing this career, 9.8 million ‘Business Analysts and 4.4 million ‘Senior Business Analysts. The market is expected to grow to 14.3% by the end of 2026. A Business Analyst with 4-5 years of experience can expect an average salary of 8.7 Lakh Per Annum, while a Senior Business Analyst with 10-20 years of experience can expect a salary of 12.5 Lakh Per Annum.
Getting Started in a Business Analytics Job
Over half of the business analytics job ads seek candidates with less than five years of experience. Meanwhile, demand for experienced analysts is also growing significantly. The scope of business analytics is expanding, and both large and small companies are desperately seeking qualified individuals with the right data skills. Now is the time to take advantage of rewarding career opportunities in business analytics and other types of analytics jobs.
These Are the 6 Most in-demand Career Paths for Business Analysts:
Business Analyst Manager: They lead and manage a team of business analysts and support them in their professional development through coaching and mentoring.
Data Business Analyst: They are responsible for collecting and analyzing data from various sources such as databases, spreadsheets, and other data sets; conducting market and competitive analysis to determine business strategies and opportunities.
Data Analytics Scientist: They are responsible for collecting data that enables organizations to make informed decisions using advanced analytics and machine learning.
Information Security Analyst: They protect and preserve organizations from unauthorized access by evaluating security data. They monitor IT networks and systems for cyberattacks and other security incidents.
IT Business Analyst: They act as a liaison between various departments and IT teams to ensure that technology solutions are designed and implemented in a way that meets the organization’s business needs.
Quantitative Analyst: A specialist who builds mathematical models to represent and support risk assessments and financial investments.
The scope of business analytics is enhanced by data literacy in the form of data visualization, which promotes data analysis and implements business intelligence by stimulating your creative mind and storytelling skills. So, if you can back up your arguments and recommendations with data, you will become influential in your workplace and can advance your career.
Frequently Asked Questions (FAQ)
1. How do I avoid pitfalls on my business analytics career path?
Combine your technical knowledge with non-technical skills to enhance your opportunities. And as you move up, try to specialize in a particular role as a business analyst rather than being a generalist.
2. Do you need to be data savvy?
To distinguish yourself as a business analyst, it’s a great advantage to demonstrate your data skills. Invest wisely by taking time to develop your data skills, volunteering to work on projects where you work with data and data teams, or enrolling in a self-study course in data science or analytics that will teach you basic skills. If you want to incorporate business analytics and intelligence into your skill set, you can gain an undeniable competitive advantage that will benefit both your business and your career.
3. Is there any scope for business analytics?
There is a huge scope for business analytics.
