Data Mining and Business Analytics
Success business requires more than just knowledge or ways in dealing “big data”. Execution is essential but without a plan and commitment, nothing. Successful companies require an understanding of how business analytics works and how it can be implemented to improve their business.
Business Analytics is a data management solution and business intelligence subset that refers to methodologies such as data mining, predictive analysis, and statistical analysis. Well, before discussing further, business intelligence is a kind of process or services that leverages software to transform the data into actionable insights which inform an organization’s strategic and tactical business decisions. So, what is the difference between BA and BI? To put it simply, Business Intelligence is descriptive, while Business Analytics is predictive and prescriptive. BI leverages past and present data to describe the state of your business today, but BA mines the data to predict where your business is heading and prescribe actions to maximize the beneficial outcomes. Without BI, BA won’t work, unable to collect data and analyze it.
The process of business analytics is not easy either, takes time. The main components of a typical business analytics dashboard include data aggregation, data mining, association and sequence identification, text mining, forecasting, predictive analysis, optimization, and data visualization. Below the flow of business analytics process:Self-service has become a major trend among business intelligence tools that enables organizations to make the company’s internal data reports more readily available to managers and other staff.
In today’s data-driven climate, valuable opportunities might go without using BI and BA.
Business Intelligence can:
- Provide business information quickly and efficiently
- Empower employees through data access
- Come up with performance indicators aligned with the business strategies
- Save time
- Gain more customers insights
- Show important information of sales
- Identify the costs
- Increase employee productivity
- Achieve greater social media intelligence
- Protect business from online threats
Analytics has been the key of success for many companies or industries. Business intelligence is different in business and in government. As for in government, business intelligence being able to deliver better services to citizens in traditional or innovative ways in order to receive reports or information’s as much as possible. For example, by using BI, government can analyze enormous quantities of data to interpret the behavior of citizens through statistical modeling to better understand their needs. Not only that, BI provides solution of transparency problem which benefits for both government and its citizens. It enabled the automatic publishing of reports accessible by the citizens through website which constantly being update on the allocation of public funds, with respect to all acts subject to the obligation of transparency. Furthermore, the solution provides an interactive, multi-dimensional analysis system, which allows officials and entity managers to monitor data relating to expenditure and funds and to perform complex analyzes autonomously on fundamental indicators of effectiveness in the use of funds.
Meanwhile for in companies, business intelligence needed for providing visibility into transactions or different kinds of data in effective and efficient ways. For example, a company wants to have a better management in its supply chain, so it needs BI to determine where and why it’s happening and where variabilities exist within the shipping process. The company could also use its BI capabilities to discover which products are most commonly delayed or which modes of transportation are most often involved in delays.
Business Intelligence should be a stage that enables a company to raise itself more efficiently towards its strategic missions. It encompasses powerful tools the businesses need in order to thrive. Information is power, and BI takes this power and makes it usable. The applications of business analytics as the subset of BI are wide-ranging and the benefits of business analytics are clear for the businesses all over the world.
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