Business Analytics Techniques | Top 10 Business Analytics Techniques | Business Analytics

ByLora Goody

The abilities, methods, and tools for continuously exploring and analysing historical business performance in order to obtain knowledge and inform future planning are collectively referred to as business analytics. In order to analyse, interpret, and provide insights that can guide business decision-making, it entails using data analysis tools and methodologies.

  1. Descriptive Analytics: This involves analyzing historical data to understand what has happened in the past. It includes summary statistics, visualization, and other techniques to describe and summarize data.

  2. Predictive Analytics: This involves using statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data. It helps businesses make predictions and forecasts.

  3. Prescriptive Analytics: This type of analytics goes a step further by suggesting actions to take advantage of the predictions generated by predictive analytics. It provides recommendations on what actions to take to optimize a given outcome.

  4. Diagnostic Analytics: This involves examining data to understand why certain events occurred. It helps businesses identify the root causes of problems or successes.

  5. Big Data Analytics: With the increasing volume and variety of data available to businesses, big data analytics involves the use of advanced analytics techniques to process and analyze large datasets that traditional analytics tools might struggle to handle.