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Business Analytics is the most growing activity and profession in Business Intelligence since the arrival of Big Data. But first, you have to know what is being dealt with here. The definition of Business Analytics provided by Thomas H. Davenport of Competing on Analytics is: “We understand by business analytics the intensive use of data, statistics and quantitative analysis, predictive and explanatory models, and decision-making based on facts and evidence. BA can be an input for decision-making by people or it can be an engine for automated decision-making.”
1. Business Analytics Strategy / Business Analytics
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2. Activities of a Business Analyst / Data Scientist
3. Data, information and knowledge
In Business Analytics, knowledge must constantly iterate with the information that in turn is repeatedly executed with the data, generating a cycle that results in an enrichment of the first.3.1. Data
By definition, data is the minimum semantic unit and corresponds to primary elements of information that alone are irrelevant as support for decision-making. They can also be seen as a discrete set of values, which say nothing about the why of things and are not indicative for action. The data can come from internal or external sources of the organization, of an objective or subjective nature, or of a qualitative or quantitative nature, etc. For example, these can be a person’s phone number, their job title, etc.3.2. Information
Information can be defined as a set of data processed and that have a meaning (relevance, purpose and context), and that, therefore, are useful for those who should make decisions, by reducing their uncertainty. Data can be transformed into information by adding value: • Contextualizing: it is known in what context and for what purpose they were generated. • Categorizing: the units of measurement that help interpret them are known. • Calculating: the data may have been processed mathematically or statistically. • Correcting: errors and inconsistencies have been eliminated from the data. • Condensing: the data has been summarized more concisely (aggregation). The information could be defined with this formula: Information = Data + Context (adding value) + Utility (reducing uncertainty).3.3. Knowledge
Knowledge is a mixture of experience, values, information and know-how that serves as a framework for the incorporation of new experiences and information, and is useful for action. This originates and applies in the minds of connoisseurs. In organizations, it is often not only found within documents or data warehouses, but also in organizational routines, processes, practices, and standards. Knowledge is derived from information, just as information is derived from data. For information to become knowledge, it is necessary to perform actions such as: • Comparison with other elements. • Prediction of consequences. • Search for connections. • Conversation with other knowledge bearers.4. Conclusions
Business Analytics or Business Analytics, is the functional discipline that every business analyst must incorporate as their own skill when working on Business Intelligence and Big Data projects. Business Intelligence and Big Data is the technological substrate that supports the activities of the Data Scientist. However, the line between BI IT expert and Business Analyst is getting thinner, as both have to be increasingly transversal disciplines.Frequently asked questions
What is business analytics in Business Intelligence?
Business analytics in Business Intelligence turns sales, customer, operations and marketing data into useful information for decision-making. Its goal is to detect patterns, opportunities and business risks.
Quick answer: Business Analytics in Business Intelligence should be approached as a practical decision framework: clarify the objective, validate reliable data, prioritize actions with measurable impact and review results regularly. The goal is to connect each recommendation with business context, audience needs and continuous improvement.
| Area | What to review | Useful indicator |
|---|---|---|
| Objective | Define the business goal, audience and expected outcome before applying any tactic. | Qualified traffic, leads, sales or efficiency improvement. |
| Data and measurement | Check that the information used to decide is reliable, comparable and aligned with the channel. | Conversion rate, attribution quality and trend evolution. |
| Optimization | Prioritize actions by impact, effort and learning potential instead of applying isolated changes. | Improvement after implementation and next action identified. |
What is Business Intelligence used for in a company?
It is used to unify data, create indicators, visualize results, monitor objectives, detect deviations and support evidence-based decisions instead of intuition or isolated reports.
What is the difference between business analytics and reporting?
Reporting shows what happened through reports or dashboards. Business analytics interprets causes, segments data, forms hypotheses and proposes decisions to improve results.
Which metrics are used in business analytics?
They depend on the area, but may include revenue, margin, customers, retention, acquisition cost, conversion, operational efficiency, demand forecasting and profitability by channel or product.
