Business Analytics: 5 Practical Applications Unveiled

Business analytics plays a crucial role in shaping up organisations by empowering them to make data-driven decisions. With strategic solutions, business analytics can help improve efficiency within the organisation and gain a competitive advantage as well. Not only business growth, but there’s an increase in revenue as well. A study by McKinsey found that businesses that leverage analytics have seen a 5-15% increase in their revenue. The right use of analytics, thus, can prove quite beneficial for companies. In this blog, we’ll see what, where, and how business analytics can make a difference in various sectors.

5 Practical Applications of Business Analytics: Industries, Sectors, and Case Studies

The practical applications of business analytics are as diverse and rich as the domain itself. Especially in today’s evolving world that is increasingly driven by technology and data, business analytics is bigger than ever. Every other established company leverages business analytics to make decisions based on data, and formulate strategies that can help the organisation grow from within and beyond. Here are some popular sectors within several industries, and where and how business analytics works in action:

Applications Of Business Analytics In Banking and Finance

In a field that is surrounded by numbers, business analytics is naturally an indispensable tool for business enhancements. Banks and financial institutions heavily rely on business analytics to sieve through the large amounts of data, and look for patterns or extract insights that can help the institutions make data-backed decisions and better choices. Following are a few examples where business analytics is most frequently implemented in the industry of finance:

• Risk assessment and management

Business analytics helps identify, evaluate, and mitigate potential risks at an early stage. It plays a significant role in market risk assessment, to gauge the current market stance and understand its potential impact, in compliance risk assessment, to ensure compliance with regulatory requirements, as well as operational risk assessment, to study Key Risk Indicators (KRIs) and Business Impact Analysis (BIA) to identify potential risks and take necessary measures.

• Fraud detection

Unfortunately, fraud occurrences have increased quite a lot in the last few years. To match the rapid speed of frequency of frauds, there is a dire need of advanced tools and technologies to prevent these fraudulent activities. Business analytics uses elaborate approaches such as pattern recognition, artificial intelligence, machine learning, identity verification, etc., to identify anomalies in transaction activities. Furthermore, business analytics is also used to develop models that predict fraudulent behaviour, and preventive measures to reduce the frequency of frauds.

• Performance Analysis

Every new strategy or solution implemented needs to be evaluated. Business analytics helps in monitoring and analysing the performance on various parameters, for example, return on investments (ROI), profit margin, return on assets (ROA), etc. Assessing the company’s long and short-term financial health can provide many insights, which not only show where the company stands but also where it is headed.

Also Read – 4 Types Of Business Analytics: It’s Time To Make Data Work

Business Analytics Applications In Marketing and Sales

Marketing and sales have seen a complete revolution with business analytics in the mix. Leveraging data comes easy to marketing, since a lot of their processes and outcomes involve data. Thus, understanding such data and using it to make existing processes more efficient is the very example of how business analytics can make a difference in the field of marketing. Here are a few ways business analytics helps several aspects of marketing and sales:

• Customer segmentation

While a business can have a set target audience, the individuals within this cluster also differ. The differences of demographics, user behaviour, and preferences, can be segregated and grouped together to bring tailor-made efforts for specific audience groups. Such grouping also sheds light on customer needs, expectations, and preferences, which develop a path to explore new products and services for the users.

• Forecasting demands

Historical data is used to identify trends, patterns, and seasonality in demands for particular products and services. Using statistical methods and leveraging algorithms, it is easier to understand different scenarios and evaluate the potential risks and benefits each scenario holds. The varying nature of demands is better understood with business analytics, and can be further used to forecast demands for any product or service.

• Customer churn analysis

A significant challenge for many businesses is losing customers. Identifying the reasons behind customer churning or at risk of it, is critical. By gathering customer data of how, when and why they engage with a product/service, as well as their satisfaction rates, makes understanding the root cause behind customer churn slightly easier. Business analytics also helps identify customers with a high probability of churning, and comes up with measures to prevent the same.

• Personalised marketing

As mentioned above, grouping customers into umbrella-wide segments can help in many ways, including personalised marketing. By segmenting customers based on behaviour, needs, and preferences, predictive analysis can be used to forecast customer demands. Based on these particular demands, more customer-centric campaigns can be marketed which revolve around the user’s current needs.

Also Read – Here’s your 5 step roadmap to Master Business Analytics in 2025

Applications Of Business Analytics In Operations

Often manual and high-effort in nature, operations can always use some efficiency boost which helps save time and energy, while getting the work done. Thanks to business analytics, this is a reality. In its entirety, business analytics can help reduce cost and improve productivity at operational levels, for many industries. Some key areas of business analytics in practice are as follows:

• Supply chain optimisation

For manufacturing companies, supply chain optimisation is a significant focus area to work on, as it leads to improved efficiency and reduced costs. Supply chain optimisation is a mix of many different things, such as minimal waste, streamlined processes, and optimal flow of goods and services. All these are taken care of, with specific approaches in business analytics like inventory management, demand forecasting, data analytics, etc.

• Quality control

Before pushing the product out in the market, it is essential for it to undergo extensive quality control. It is, thus, equally essential to identify and understand the root causes of defects in products and processes, post which changes can be implemented to improve process quality and efficiency. These suggestions are offered by business analysts, which can help keep a good control over quality on the process as well as product stages.

• Process improvement

Operationally speaking, process improvement alone can make a whole lot of difference in the way a manufacturing company functions. Business analytics is used to identify and remove waste and any unnecessary steps in processes. It can further be used to understand the root causes behind these problems, and to redesign and implement suggestions for much more efficient processes.

Also Read – Top 10 Business Analytics Courses | Online & Offline

Business Analytics Applications In Human Resources

The department of human resources essentially runs on two things: humans and data. While businesses take care of the first one, business analytics takes care of the second. Human resource professionals deal with a lot of data for many different purposes, as we will see below, with processes enhanced with business analytics:

• Talent acquisition

Talent acquisition and management is an integral part of the workings in human resources. In order to save time and extra effort, the processes need to be as efficient and smooth as possible. Business analytics helps analyse recruitment data to find effective sourcing channels which can further improve the hiring process. It also speeds up the candidate screening process, at initial levels and more, by evaluating people based on skills and experience.

• Performance management

To ensure efficiency on both ends, employees are evaluated based on their performance and engagement with the company. Employees are evaluated against key performance indicators (KPIs), and the data collected can then be analysed to study it further. It provides a clear understanding of an employee’s work performance, highlighting their strengths, weaknesses, and room for improvements.

• Employee attrition analysis

Employee attrition is of much significance in the realm of human resources. It is, thus, equally important to map out the factors contributing to employee turnover. Using data from employee satisfaction or employee engagement surveys, business analytics is used to implement strategies to retain employees, which can help them in their personal as well as professional growth.

Also Read – Top 8 Tools Every Business Analyst Should Use To Solve Problems

Applications Of Business Analytics In Healthcare

Healthcare is an industry where everyone is a customer. To continue providing the best suggestions and treatments to the patients, healthcare organisations are always looking for ways to improve their outcomes and enhance operational processes. Mentioned below are some key areas where business analytics is playing a major role:

• Disease prediction

Individual data as well as population data with demographics, medical histories, genetic information can all simultaneously be evaluated with the use of business analytics. The resulting data insights can identify individuals at risk of any disease, and implement preventive measures right away. Not only does this help retain the patient’s current health without any change, but also prevent them from any discomfort brought by the disease, big or small.

• Outcome analysis

While the likelihood of patients developing or catching a certain disease can be analysed, it is equally important to study and analyse the potential outcomes in both cases. Followed by identifying the most effective treatments needed for the patient, based on their individual medical history. Such quick implementation of strategies saves a lot of time, energy and effort, for all the parties involved. This application of business analytics is quite crucial, since it can be useful not only for individuals, but the population at large.

• Healthcare resource optimisation

The industry of healthcare is quite advanced, not only in medical terms but also at operational levels. With all the necessary data available at the fingertips, it is easy to clean, organise and evaluate data effortlessly. Operations can be fully optimised with proper resource allocation, such as beds, staff, and equipment, to meet demand efficiently with all available resources. It also helps cut down on extra costs, which is always a bonus.

Also Read – Top 12 Skills Every Business Analyst Should Possess

Some More Applications Of Business Applications

The beauty of business analytics is how widespread it is. It can touch almost any industry, do its data-driven magic, and make a good difference. Adding more to the list of industries we discussed, business analytics is actively used in digital marketing, transportation, government, retail, and many others.

Business analytics is, thus, effective in practice, across many companies and industries. Its wide range of offerings and meaningful impact marks the beginning of a data-driven future. Of course, to drive the data and find strategic solutions, the market needs business analysts who are thinkers and problem-solvers. In a world that is running on data, it sure is a good day to become a business analyst!

Become a Business Analyst with Proschool

For aspiring business analysts, we understand the confusion, fear, and the need to find the right course which can help you understand business analytics in all its entirety. At Proschool, a reputed institute that is ranked among the top 10 analytics institutes of India, you don’t just understand business analytics but fall in love with it!

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• Comprehensive Curriculum: Learn and understand business analytics in theory and action, with a well-curated curriculum designed to cover all the important topics.
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• Interactive Classes: Learning with Proschool is quite engaging and interactive, where experienced professors guide you every step of the way.
• Problem-Solving Skills: Business analysts should be problem-solvers—a skill that Proschool highly emphasizes in the business analytics course.
• Real-World Projects: Dive deeper into the practical applications of business analytics in the real world, by learning from 15+ case studies and projects.
• Placement Support: Proschool prepares you for the next steps, with an extensive placement program that connects students with leading companies hiring for business analysts across various industries.

FAQs

What is the scope of business analytics?

The scope of business analytics is vast, with practical applications across many industries. Business analytics works internally, to improve operational and functional processes, and externally, to improve the brand’s customer-facing side as well. Its applications range from industries like finance and healthcare to marketing, human resources, retail, and many more.

What is business analytics with examples?

Business analytics is the practical use of data and statistical analysis to help design and implement actionable strategies that can help businesses make more informed decisions. For example, in finance, business analytics can be used for risk management and fraud detection, and in marketing, it can be used to group customers into segments based on their behaviour and preferences.

What is the process of business analytics?

The process of business analytics is quite elaborate. It involves business understanding, data collection and analysis, statistical modelling, evaluation, implementation, and final operationalisation. Each step involves many important activities that make the process of business analytics thorough and complete.

What is the future of business analytics?

The future of business analytics is as bright as the sun. With artificial intelligence, advanced tools, and techniques in data mining and visualisation, there’s constant innovation. The space is consistently growing, making way for new trends and a promising tomorrow ahead.