The Importance of Business Analytics

Business analytics is an essential part of any successful business. It helps companies to increase the revenue of a business, predict and improve its performance, increase return on investment for shareholders of a company; helps to obtain a larger market share and gain a competitive advantage in a related market space.

Business analytics is becoming a widely used tool among many industries such as financial firms, health care, consumer goods companies, e-commerce, government, manufacturing, service industries and others. For example, by utilizing a variety of analytical tools, finance companies that specialize in consumer credit create custom scorecards using credit algorithms, which are continuously adjusted, as new data is received and analyzed. According to the Health Care IT News, hospitals can use data analytics to reduce administrative costs, for clinical decisions support, cut down on fraud and abuse and improve patient wellness. By utilizing Google Analytics, e-commerce companies can monitor their website performance, track how many people visited their website, track how long visitors spent browsing each page and monitor their bounce rate. Also, by gathering more information about customers and their behavior, companies can generate ideas for new product development. Retailers can use business analytics to determine the right price for a product or service. Marketers can utilize analytic techniques such as competitor analysis, demographic segmentation and customer’s profiles in order to increase business for a company.

Therefore, by utilizing business analytics, companies have a better chance to make smart businesses decisions and gain a competitive advantage in the market.