Business Analytics: What is it & Why Study It?

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Introduction

Business analysts have the primary responsibility of evaluating and examining business processes, implementing measures to enhance operational effectiveness, overseeing project teams, and effectively conveying technical knowledge to the business. They mostly operate in the field of information technology, but they can also be found in several other corporate sectors, where they collaborate to identify business requirements.

The field of business analytics holds great potential for career advancement, as there is a growing need for individuals who possess the ability to extract valuable insights from data. Businesses depend on analytics to make well-informed decisions, resulting in a significant increase in employment prospects. The acquisition of a qualification in business analytics provides individuals with enhanced proficiencies in data analysis, statistical modeling, and decision-making, rendering them in high demand across many industries.

This qualification not only enables individuals to enter the sector but also improves their chances of advancing in their careers, providing opportunities for positions such as business analyst, data analyst, or business intelligence manager. Given the increasing importance of data-driven decision-making in achieving success, obtaining a qualification in business analytics provides opportunities for a dynamic and highly profitable professional trajectory.

Due to skill shortages, global organisations are having difficulty capitalising on the growth potential of new technological adoption. Skills shortages in the local labour market, as well as the difficulty of attracting the necessary personnel, continue to be the most significant hurdles to new technology adoption. Employers give reskilling and upskilling opportunities to 62% of their employees, with plans to increase this to 11% by 2025. However, employee participation in these courses is low, with just 42% of employees taking advantage of employer-sponsored reskilling and upskilling possibilities.

Emerging professions like Data Analysts and Scientists, AI and Machine Learning Specialists, and Software and Application Developers face greater skill shortages. When it comes to hiring for these positions, business leaders routinely report challenges according to a report from the “World Economic Forum.”

Who Should Pursue a Business Analytics Career?

Earning a degree or concentrating in business analytics offers numerous advantages. The following 8 clues can help you determine whether or not you are a good fit for this career.

1. You Adore Numbers

Primarily, anyone aspiring to pursue a career in business analytics must possess a strong affinity for numerical data. These professionals primarily rely on empirical evidence and objective data when formulating their recommendations and reports. If one is unable to comprehend numerical concepts, it is advisable to avoid them.

2. Data Doesn't Scare You

It is not solely numerical values, but rather data. The capacity to analyze extensive volumes of unadulterated data and derive significant insights regarding strategic decisions for a firm is vital. However, it should be noted that the data in question may not be considered raw, as it has likely undergone a process of cleansing and presentation by data analysts. Nevertheless, it remains compact and vast, hence you should not be intimidated by it.

3. Proficient in Pattern Recognition

Business analytics is the utilization of data to detect and exploit patterns. Individuals that possess a propensity for perceiving patterns within seemingly random material are likely to excel in this particular profession. Fortunately, a business analytics major encompasses numerous courses that will instruct you in identifying patterns (as elaborated upon below).

4. You Enjoy Leadership Roles

In the role of a business analyst, individuals often seek your expertise and counsel. It is a significant duty to provide guidance to an entire organization on how to enhance its financial performance, create novel products, or form strategic alliances. Achieving success is contingent upon one’s ability to get attention and respect. Individuals that have a preference for maintaining a low profile may find themselves more suitable for a career as a data analyst.

5. Interest in Computers

A practitioner in the field of business analytics engages in activities beyond the mere analysis of company data through written reports or intuition. They heavily depend on numerical data, which is obtained by algorithms or programs, some of which may be obtained from external sources, while others may be developed internally. Due to this rationale, it is common for individuals pursuing a business analytics major to be required to complete coursework in computer science, data science, machine learning, programming, or software engineering.

6. Ready to Collaborate

Once more, this position entails a public function that necessitates leadership. If one possesses a fondness for collaborating with others, then it is an optimal choice. You will engage in everyday interactions with others, seeking their input on decisions, elucidating the significance of the data, and formulating and adjusting courses of action.

7. Possess Excellent Communication Skills

Proficient oral and written communication skills are indicative of the potential to excel as a business analyst. It is important to note that this position entails the transmission of information from data analysts and knowledge workers to decision-makers and top-level executives. This necessitates the ability to condense complex concepts and articulate them in a manner that is comprehensible to individuals without expertise.

8. You Prefer Employment Prospects

According to certain estimations, the world is currently facing a deficit of a substantial number of business analysts. Business analytics expertise is in high demand globally, Increased demand leads to elevated salaries and a diverse range of choices. Given the continuous growth of data, it is highly improbable that these positions will become obsolete in the near future.

Key Components of Business Analytics Program

A Business Analytics degree program designed to provide advanced knowledge and abilities in the subject of business analytics. This curriculum is intended to provide students with the tools and methodologies required to evaluate and comprehend complex data sets, allowing them to make data-driven decisions in a variety of business scenarios. The program often includes statistical analysis, data mining, machine learning, predictive modelling, and business intelligence.

Statistical Analysis and Modelling: Teaching students how to evaluate and interpret data to make decisions.

Data Mining and Machine Learning: A look at sophisticated techniques for finding important patterns and information from huge datasets.

Business intelligence: It focuses on tools and tactics for converting raw data into actionable insights to support corporate strategy.

Predictive Analytics: It is the practice of predicting future trends and outcomes using historical data.

Big Data Analytics: Addressing the problems and opportunities that come with analysing huge and complex datasets.

Data Visualisation: Teaching students to show data in a visually appealing and understandable format for effective communication.

Business Strategy and Decision-Making: Including analytics in overall corporate strategy and decision-making processes.

A study program in Business Analytics is extremely valuable in today’s data-driven business world, preparing graduates for positions such as data scientist, business intelligence analyst, analytics manager, and others. The curriculum aims to bridge the gap between business and technology by equipping graduates with the skills required to use data for strategic decision-making in a variety of industries.

Scope of Business Analytics (Based on Data)

Big data, which refers to complicated and very large sets of data that are too big for standard data processing programs to handle, is an important part of the digital world. Companies that do business online use “big data” to get value from collecting and studying online data. To use the power of “big data,” they need advanced analytics skills, processing power that has never been seen before, and large, safe storage spaces.

The global market for big data analytics is projected to bring in $68.09 billion every year by 2025 and $274.3 billion by 2022. As per Statista.com, around the world, 79 zettabytes of data were created in 2021, and 90% of that was duplicate data. There will be more than 150 zettabytes of big data to look at by 2025.

The number of data breaches rose by more than 400% during the COVID-19 pandemic. Analytics and big data application database solutions will be used a lot more by 2027. They will be used for $12 billion. It is thought that the value of the big data market will rise by $30 billion between 2021 and 2022.

The amount of data created, used, copied, and saved will reach 180 zettabytes by 2025, with 90% of that being duplicate data as per Statista.com, and more than 65 billion messages are sent and received every day on WhatsApp as per Mybasis.com. Today, it would take someone 181 million years to download all the information on the web.

Between 2010 and 2020, data interactions went up by 5000%, which led to a big rise in data use, as per Forbes. In 2020, each internet user made 1.7 megabytes of data every second, as per IBM. Eighty to ninety percent of the data created every day is not structured because of the different ways people use the internet, as per CIO.com.

The world market for data analytics is expected to grow a lot over the next few years. By 2024, the market is expected to be worth $17.6 billion, as per Statista.com. Big data analytics are being used more and more in many fields, like business intelligence, healthcare, and analytics, which is driving this growth.

The global market for big data analytics is projected to grow to $68 billion by 2025. In 2019, it is expected to bring in $15 billion, as per Statista.com. Also, the value of healthcare is expected to grow 19.1% per year until 2025, when it will reach $67.82 billion, according to Globenewswire.com.

The Global Analytics as a Service (AaaS) market is estimated to be worth around $101 billion by 2026, as per Statista.com.

The market for marketing-related data is estimated to be worth $52.62 billion by 2021. By 2023, the global DaaS (Data as a Service) market is expected to be worth $10.7 billion, and sales are expected to grow to become worth that much, as per Statista.com.

The market share for companies like Microsoft, Informatica, and SAS in the world market for big data and analytics software is huge. Microsoft has 12.8% of the global market for big data and analytics software. Informatica, on the other hand, has the largest market share in the global market for big data analytics and integration software, according to Statista.com.

Conclusion

In conclusion, the market for data analytics is likely to keep growing over the next several years. In the years 2012–2020, the amount of useful data that was analysed from a variety of industries, including social media, entertainment, and surveillance, rose from 22% to 37%. The market for big data is worth $138.9 billion and growing, according to some recent statistics.

In the future, Industry 4.0 will place even greater emphasis on big data and analytics, cloud infrastructure, artificial intelligence, machine learning, and the Internet of Things (IoT), called the “big four” technologies.

The big four technologies are the driving force behind industry 4.0, with about 72% of digital enterprises utilising at least one, if not all four, to achieve their objectives.

In 2020, the digital business landscape saw a change, with 48% of big data and analytics leaders undertaking several digital transformation projects. According to reports, 72% of modern firms are leading or participating in digital transformation activities, as per Statista.com. Data sharing, ROI on data and analytics efforts, and data quality are the top considerations.

In the year 2020, numerous industries successfully employed data to enhance their decision-making processes, with a significant majority of enterprises (65%) identifying the banking sector as the frontrunner in data-driven decision-making, as per a report by Statista.com. Additional industries encompass insurance and telecommunications.

38% of businesses around the world invested in smart analytics in April 2021. Investments are expected to slightly rise over the next 12 to 18 months, as per the report by Statista.com. Smart analytics make it easy for businesses to look at huge amounts of data quickly and find insights that they can use to make better decisions.

Big data and its technologies are the keys to unlocking the vast potential of the internet. They help modern businesses predict changes in the market, find more profitable business opportunities, become more efficient, beat competitors, and give customers a better service and experience.

FAQs

What is Business Analytics & Why is it Important?

Analysing data for the purpose of making wise judgements in a variety of corporate settings is known as business analytics. It is essential for improving operating efficiency, seeing opportunities, and forecasting trends. Companies use analytics to boost productivity and obtain a competitive advantage in the marketplace.

What career opportunities are available in Business Analytics?

A business analytics qualification provides access to a wide range of employment opportunities, including business analyst, data analyst, business intelligence manager, and more. These positions entail carrying out data analysis, formulating suggestions based on data, and participating in organizational strategy decision-making.

Who should consider pursuing a career in Business Analytics?

A job in business analytics is ideal for those with a strong passion for statistics, a love of data analysis, the ability to recognize patterns, an aptitude for leadership, an interest in computers, teamwork, and exceptional communication skills.

What are the key components of a Business Analytics program?

Statistical analysis, data mining, machine learning, predictive modeling, business intelligence, data visualization, and business strategy are frequently covered in business analytics degree programs. These elements give students the knowledge and abilities needed to assess large, complicated data sets and make informed decisions in a range of business contexts.

What is the scope of Business Analytics & what evidence supports its growth?

Business analytics has a wide range of applications, and it is expected that its global market will expand dramatically over the next few years. Research points to a growing need for analytics expertise across businesses, which is fueled by the desire to derive relevant insights from the growing amount of data created. Business Analytics is especially well suited for use in the healthcare, marketing, finance, and technology sectors.

What are some statistics regarding the growth and adoption of Business Analytics globally?

Data show that business analytics is expected to grow significantly on a global scale, with expectations for higher market prospects, increasing investment in analytics technologies, and a rise in the need for personnel with expertise in these fields. The significance of Business Analytics in the contemporary business environment is highlighted by the growing dependence on data-driven decision-making in various industries.

Business Analytics: What is it & Why Study It?

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Table of Contents

Introduction