Future Scope of Business Analytics
- The Evolution of Business Analytics
- Applications and Scope of Business Analytics
- Talent Pool of Business Analysts
- Future Scope for Business Analysts
- Promising Business Analytics Future Trends
It’s time to put ‘Business Analytics’ at the core of businesses.
When we think about analytics in the business, what comes to our minds is how it helps us in decision-making. We consider it as a technology that assists us in analysing past information and drawing conclusions that help us make better and informed decisions for the future. But that was not always the case.
As per McKinsey, AI will contribute an $9.5 trillion to $15.4 trillion annual impact across nineteen industries worldwide. (Source)
Today, the world is changing and so do businesses. So here comes a need to address several aspects of business challenges differently than it was done previously. Analytics has become a core part of customer relationship management (CRM), sales forecasting, risk assessment, etc.
In fact, no big decision should be taken without analysing data first nowadays. It is not a surprise that almost all businesses from small to large are using analytics in their decision-making process nowadays. However, with the growing interest and awareness about business analytics worldwide, there have also been some misconceptions about the future scope of business analytics.
According to some analysts and expert blogs across the Internet, businesses today are interested in business analytics for reporting purposes only. Businesses still have little or no interest in implementing an advanced business analytics framework for future use.
With the rising trends toward big data technology and techniques, companies will be able to predict customer’s behavior before it even happens. It means that organisations will now be required to put together the right expertise and technology in order to bring analytics from a descriptive mode into an analytical mode.
The Evolution of Business Analytics
In recent years, the role of business analytics has evolved from being a mere precursor to decision-making to that of playing an active role in shaping market trends and behaviours. By knowing consumer behaviors, businesses are able to work strategically in their respective industries. Let’s take an example for it:
Most organisations today have implemented CRM systems that allow them to know their customers’ purchasing patterns, interests, etc. By knowing the customer purchase history, businesses can offer tailored products and services to their customers that suit them well.
The one-customer approach has now given way to a CRM environment that allows businesses to track information about multiple customers at one time. The business processes have therefore changed from a manual to an automated system.
With a better understanding of customer trends, businesses are able to set their business strategies more strategically than before and make appropriate decisions about where to invest the resources. Using such strategic decision-making techniques has helped many companies give their customers a personalised shopping experience.
Businesses that fail to adopt such trends will find it extremely difficult to survive in the market. So, it is important for businesses today to have a clear understanding about how analytics can impact their key performance indicators (KPIs) and bring them closer to success.
Applications and Scope of Business Analytics
Today, organisations use business analytics for multiple purposes, including:
- Customer Engagement
- Better Decision-Making
- Business Development
- Expanding Portfolio of Products and Services
- Cost Management
- Risk Management
- Employee Benefits (Bonus, etc.)
- Improving Workforce Productivity
Businesses today are using analytics for developing better products and marketing them in the correct manner.
For instance, companies can use data mining techniques to find more about their customers’ behavioral patterns within a database and develop highly personalised approaches toward targeting consumers with a given product or service.
Some businesses have used Big Data technology to analyse consumer data and generate results on various segments of the market.
Big data analytics is also used to find connections among various markets and their business strategies, helping organisations in developing a better understanding of the industry dynamics.
With business analytics, organisations can use data to analyse trends and generate reports; however, it is imperative that these results be used for strategic decision-making purposes. Organisations should avoid using these results for mere reporting purposes only and rather use them to develop better strategies and achieve success in their respective industries.
Talent Pool of Business Analysts
India is one of the world’s leaders at providing talent for analytics.
Improvements in India have led to it being more successful than China and Eastern Europe in this field.
The success in India with the IT sector, a great entrepreneurial culture, and their proficiency with English have also played a large part in India being an early leader in Analytics.
Outsourcing is a common business strategy in India, as many companies from abroad use Indian organisations to carry out their analytical requirements.
Future Scope for Business Analysts
Business analysts do not require a specific degree to enter the profession. Many organisations today look for people with good knowledge of computer languages and analytical skills. Having a degree in Statistics or Economics will definitely help; however, it is not mandatory to have one.
The Bureau of Labor Statistics estimates a 14% increase in the need for business analysts, which is one of the highest average percentages among growing occupations. (Source: https://www.collabera.com/find-a-job/career-resources/5-in-demand-career-paths-for-business-analysts/)
A large part of this growth is attributed to the increased use of cloud computing, mobility, and social connections by businesses.
The future scope for analytics in India is expected to grow. This will undoubtedly help companies improve their bottom lines and also aid them in making better decisions.
Analytics will be used to develop and run highly customised marketing strategies that can help in achieving competitive advantages. It can also be used for Big Data purposes and can be applied directly on mobile devices to create a better consumer experience.
Highly competitive industries such as retail are expected to contribute greatly toward the future scope of business analytics.
Business analytics can also be used to improve employee productivity coupled with a reduction in costs, which is essential for businesses operating in a highly competitive environment.
The scope of business analytics is expected to grow further as the growing demand for more innovative and cost-effective products by companies will aid in exploring new frontiers that can potentially transform the industry dynamics.
Promising Business Analytics Future Trends
Experts predict that the following trends will dominate.
Analytics is transforming digital security. They have been used to detect intrusions, encode private data, and design countermeasures against malware.
- The Internet of Things (IoT) will continue to grow rapidly. This is both a benefit and curse for people implementing IoT solutions because they are forced to deal with the additional data generated by devices that cannot be collected automatically.
- Companies will use data to make money.
- The growth of Cognitive Analytics
- The relevance of open-source solutions will increase as demand for them increases.
- Focus on tax analytics to simplify the process of recovering overpaid transactions and help prevent future charges.
- In recent years, data scientists have been in high demand and are becoming challenging to find because they know how to do both qualitative and quantitative analysis.
- Companies would be overly concerned about the accuracy of their data.
Basis the aforementioned points, Business Analytics will be in high demand in the coming years.
Business analytics has continued to evolve over the years. With the pervasive nature of this profession, there are growing options like becoming a data scientist or analytics professional.
So, a course in Business Analytics that holistically covers the learning curve for you is a great place to start for aspirants who want to make it big in the Business Analytics field.
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