An online MBA program with a concentration in Business Analytics from Carleton University teaches students how to make sense of large amounts of information and turn it into practical plans. With courses like Business Analytics for Managers and Business Analytics Methods, students build an understanding of how data strengthens decision-making across a business.
Business analytics involves using data, statistical methods and quantitative analysis to understand past business performance and make better decisions for the future. Business analytics primarily use the following several kinds of analytics:
- Descriptive analytics: Descriptive analysis looks at past data to figure out what has happened. It involves gathering and studying information to spot trends and patterns. For example, a company might use it to review sales figures from the last quarter to find their best-selling products. This helps in understanding the current state of the business.
- Predictive analytics: This type of analytics goes a step further, using statistical data models and machine learning to forecast what might happen in the future. It evaluates the chances of future events based on historical data. Businesses use this to anticipate sales volume or predict how customers will behave, allowing for more proactive planning.
- Prescriptive analytics: Prescriptive analytics is the most advanced type. It recommends specific actions to achieve desired results. This approach brings together descriptive and predictive analytics with optimization methods to suggest the best course of action. For instance, in supply chain management, prescriptive analytics might suggest ideal inventory levels to cut costs.
Benefits of Prioritizing Data Analytics in Business
Prioritizing data analytics can lead to further product innovation, efficiency, lower risks and more. Making data analytics a priority offers businesses some serious advantages:
- Understand customers better: Data analysis lets businesses understand their customer base. By studying customer data, companies can pinpoint specific demographics, preferences and behaviors, allowing them to tailor products and services more precisely.
- Strengthen how to make choices: Data analysis transforms raw information into clear observations. This lets companies make choices based on reliable evidence instead of just assumptions. By understanding trends and patterns, organizations can plan their strategies with much more confidence.
- Develop focused marketing efforts: With a better grasp of customer data, businesses can develop highly focused marketing efforts. This means creating personalized messages and promotions that resonate directly with specific customers, improving engagement and conversion rates.
- Boost efficiency: Data analysis helps spot operational inefficiencies and potential risks. It can pinpoint bottlenecks in the process, leading to streamlined workflows and identify problems that might indicate fraud or market changes, allowing for proactive adjustments and risk minimization.
- Spot chances for new offerings: Having strong data analytics can spark innovation. It allows businesses to identify unmet market needs or emerging trends, leading to the creation of new product and service opportunities that fit market demands and strengthen a company’s position.
Companies Using Data to Drive Success
When it comes to harnessing the power of data analysis, several well-known companies stand out as examples. The following show how using data leads to better business results:
- Target: They used machine learning models and predictive analytics to determine when customers might run out of an item, and predict when they might need a refill. Target then sent targeted advertisements and coupons for those items to customers, increasing overall company revenue.
- American Express: This company developed an AI model to analyze customer behavior and payment records to predict fraudulent activity. This resulted in a decline in fraud losses for the company and enhanced customer experience.
- Netflix: Netflix uses data algorithms and predictive analytics through its platform to target consumers and make recommendations tailored to each user. Based on this, 75% of viewer activity for Netflix originates from recommendations.
- Uber: Uber used data on driver locations, ride requests, traffic patterns and more to respond faster and more accurately. As a result, 98% of rides are fulfilled within 10 minutes of booking.
Who Benefits from Data Analytics Skills?
Knowing about data analytics benefits a wide range of professionals across various fields. Aspiring data analysts find these programs useful because they teach the fundamental methods needed for the job.
Experienced professionals can update their skills to meet job requirements and move into more analytical roles, where they can develop strategies and contribute to innovation. Managers, executives, individuals in finance, marketing, human resources and operations can all improve their work, ultimately leading to better overall results.
Learn more about the online MBA with a concentration in Business Analytics from Carleton University.