Business analytics (BA) is a process applied by organizations to manage large sets of data so as to produce useful information for problem solving, and decision making to enhance performance of the business. Business intelligence, data mining and analytic applications are well integrated within transaction systems to facilitate analytics.
The process of analytics involves three major component sequential steps. The first step is descriptive analytic analysis where data is sorted into groups to improve manageability. Predictive analysis uses historical data to determine whether observed trends can be used to predict the future. The final step; prescriptive analysis helps users to come up with different possible outcomes to guide towards solutions and optimal utilization of resources based on the predicted future trends.
Many organizations take up BA as a routine so as to address specific issues, while other firms use it as a guide to planning through exploration and discovery of new knowledge. BA is applied in several aspects of a firm including sales and marketing, fraud detection and supply chain optimization.
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