What Is Business Analytics? | Business: Explained

Summary

This video script highlights the importance of business analytics in today's market, outlining four key types: descriptive, diagnostic, predictive, and prescriptive. Descriptive analytics uses historical data to explain what happened, while diagnostic analytics identifies the causes behind trends. Predictive analytics forecasts future scenarios, and prescriptive analytics recommends optimal actions. The script encourages viewers to explore further through a business insights blog and an online course in Business Analytics.

Takeaways

• 📈 Data is a crucial resource for decision-making and performance in various industries.
• 🔍 Business analytics involves collecting, analyzing, and interpreting data to inform decisions.
• 📊 There are four types of business analytics: descriptive, diagnostic, predictive, and prescriptive.
• 📋 Descriptive analytics provides a historical view of what happened using current and past data.
• 🔎 Diagnostic analytics helps understand why something happened by identifying root causes and variable correlations.
• 🔮 Predictive analytics uses historical data to forecast future scenarios, trends, and events.
• 📚 Prescriptive analytics suggests the best course of action based on all relevant data.
• 💡 Descriptive analytics is useful for tracking changes over time, like website traffic.
• 🛠️ Diagnostic analytics can improve products and services by analyzing reasons for customer churn.
• 📈 Predictive analytics assists marketers in planning campaigns based on sales trend forecasts.
• 📝 Prescriptive analytics helps product managers optimize user experience by deciding feature inclusions or exclusions.

Q & A

What is the significance of data in the modern business landscape?

Data is a valuable resource that professionals across industries use to collect, analyze, and interpret information to inform decisions and drive organizational performance.

What is the process of using data to inform decisions and drive performance known as?

The process is known as business analytics.

How many types of business analytics are mentioned in the script?

There are four types of business analytics mentioned: descriptive, diagnostic, predictive, and prescriptive.

What does descriptive analytics answer and how does it use data?

Descriptive analytics answers the question 'what happened?' by using current and historical data to describe trends and relationships.

In what way is descriptive analytics effective for communicating change over time?

Descriptive analytics is effective for communicating change over time, such as tracking and reporting a business's website traffic.

What question does diagnostic analytics address and how does it help?

Diagnostic analytics addresses the question 'why did this happen?' by helping determine the root cause of trends and correlations between variables.

Can you provide an example of how a company might use diagnostic analytics?

A meal kit delivery company can gather data on why people cancel subscriptions to improve its products and services and retain customers.

What does predictive analytics predict and how does it use past data?

Predictive analytics answers 'what might happen in the future?' by utilizing past data to forecast scenarios, trends, and events to inform business strategies.

How can marketers use predictive analytics to plan campaigns?

Marketers can use prior years' data to forecast sales trends and plan campaigns accordingly.

What does prescriptive analytics answer and what does it involve?

Prescriptive analytics answers 'what should we do next?' by involving the consideration of all relevant data to chart an optimal path forward.

How can product managers of a new mobile app use prescriptive analytics?

Product managers can employ beta testing to determine which features to include or exclude to optimize the user experience using prescriptive analytics.

How can leveraging different types of business analytics together benefit an organization?

Leveraging these business analytics types in tandem can provide a full picture of the story data tells and lead to more informed decision making.

What resource is suggested to learn more about data analysis for business success?

The video description provides links to a business insights blog and an online course called 'Business Analytics' for further learning.