posted on Wednesday, November 4, 2015
I was looking for a reasonable definition of the word "Analytics". This term is used everywhere in business nowadays and having some background in economics and statistical analysis, I am very curious about the new knowledge that it could add to what I do. Particularly, business analytics is increasingly identified by many as a top priority while businesses seek out new areas of competitive advantage.
According to a text book written by James R. Evans (See, Business Analytics: Methods, Models, and Decisions, 1st edition), "analytics is the use of data, information technology, statistical analysis, quantitative methods, and mathematical or computer-based models to help managers gain improved insight about their business operations and make better, fact-based decisions." You will find many definitions and elaborations in a simple google search on curriculums from some elite business schools in the U.S.
Business analytics primarily focuses on three major statistical analysis methods: 1) applied statistics, 2) simulation, and 3) optimization and decision analysis. Overall it's data mining, optimization, and simulation.
The team at DIS would be considered a data miner that examines huge data sets using sophisticated software to identify undiscovered patterns and establish hidden relationships. Our team then uses business analytics to perform statistical inference which points to deriving conclusions based solely on what is already contained within the data. We don't stop there. We use predictive modeling, which is the practice of fitting models primarily for the purpose of predicting out-of-sample outcomes rather than just performing statistical inference.
There are many advanced business applications of analytics. These range from pricing decision-making, supply chain management, human resource planning, financial (or marketing) activities, and management of customer relationships, etc. Our team at DIS can help you gain an understanding of how the use of business analytics will enable you to formulate and solve business problems and to support managerial decision-making.
- analytics
- big data
- dis