Business Analytics > Foundations of Business Analytics > What Is Business Analytics?

What Is Business Analytics?

Business analytics means using data, computers, and simple math and statistics to understand how a business is working. It helps managers see what is really happening in their business and make better decisions based on facts, not guesses.

Core Components

• Define objectives: This is the first and most important step. If business goals, key questions, and problems are not clearly defined, the later steps will not be effective.

• Data Aggregation: Collect data from different sources into one place. Filter, combine, and sometimes change the format so it works with analytics tools.
• Data Cleaning: Prepare data for analysis by removing errors, missing values, duplicates, and outliers. Ensure data is in the correct format for math, statistics, or programming.
• Analytical Methodology: Choose the right method based on the goal: understand the present, learn from the past, or predict the future. Know which tools and techniques to use.
• Evaluation and Validation: Check if the results are reliable. Test models, run simulations, and improve methods to ensure insights are accurate and useful.
• Reporting and Data Visualization: Present results clearly using tables, charts, and visuals. Make insights easy to understand and help decision-makers see trends and take action.

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Scope of Business Analytics

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