Businesses are accumulating vast amounts of data. For example, the average company manages 163 terabytes of data. That’s enough to hold the entire printed collection of the Library of Congress. Business analytics is the process of transforming raw data into useful insights that drive strategic and operational decision-making. Business analysts study large datasets and identify trends, patterns and other anomalies. They then provide visualizations to stakeholders that can be used to understand these patterns.

Business analytics can also help organizations develop new products and services that meet the needs of their customers. For example, Netflix analyzes viewer data to recommend content that matches their interests. This helps the company increase customer satisfaction and loyalty while driving revenue growth.

The Power of Data Analytics in Business: Why It Matters

In addition to enhancing marketing and customer service, business analytics can reduce risk. By analyzing historical data, businesses can identify potential risks and develop strategies to mitigate them. A financial institution, for example, might use predictive analytics to detect suspicious transactions. A supply chain company might monitor geopolitical events, weather patterns and supplier performance to anticipate potential disruptions.

Previously, advanced business analytics tools were only available to companies with dedicated data scientists or IT teams. But today, many tools are more user-friendly and accessible to business users without a technical background. For instance, a food truck owner can now visualize daily sales and customer feedback using a simple dashboard without a PhD in data science. This democratization of Data Analytics gives small businesses a competitive advantage by allowing them to stay ahead of their competitors.