Principles of Business Analytics - Assignment

Added on - 11 Nov 2020

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PRINCIPLES OF BUSINESSANALYTICS
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1TASK 2............................................................................................................................................52.1 Calculation using Ms-Excel.............................................................................................52.2 Regression Model.............................................................................................................62.3 Key contributing factors for property price based on results...........................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness analytics is a skill, practices, technology which is used by mangers to exploreand investigate theprevious performance of business in order to gain the insight and drive thatanalysed data for business planning (Chen, Chiang and Storey, 2012). It focuses basically ondeveloping a new understanding and new insights to improve its business performance which isbased on various statistical and data methods. The following report contains the detail analysis ofpurpose, role and importance of business analytics in order to create the strategic value andcompetitive advantages. It also defines the analytics ecosystem and their adoption in variousindustries. It also explains the process involved in data mining and their implications.TASK 1Business analytics:Business analytics is a considered as a practice, technology and skills usedby managers to investigate and explore the past performance of business to take strategicdecisions (Hofmann and Klinkenberg, 2013). Business intelligence mainly focuses on the use ofconsistence metrics to measure the previous performance and make strategic business decisionsin order to achieve its organisational goal. It makes extensive uses of various statistical analyseswhich includes predictive and explanatory models and fact based management in order tosupport decision making process.Following are the various importances of Business analytics:It is a methodology which is used by managers to make strategic and sound commercialdecisions to gain competitive advantages and create strategic value. It basically impactsthe complete functioning of an organisation.It also helps the mangers to improve the profitability of a business and increase its marketshare and revenue which help companies to provide higher return to its variousshareholders.It also facilitates complete understanding of various available data through primary andsecondary sources. Mangers analyse these data in order to improve its businessoperational efficiency of various departments to reduce its cost and gain competitiveadvantages over its competitors.Mangers use these data and combine it with various well though available models toimprove its business decision making process.1
It also converts the various available data into valuable information which is used bymangers to take effective decisions in order to gain the competitive advantages. Thisinformation is provided into required given format which is comfortable to decisionmakers.Business analytics is an important aspect of any business as it provides a deep understandingabout the business and industry in which a business is established (Schläfke, Silvi and Möller,2012). The main role of business analytics is to provide comprehensive data about business andidentify the problems and improve its business operational efficiency to reduce the cost andincrease the quality of product delivered by company to gain competitive advantage over itscompetitors and capture market share and increase its financial position. Business analytics alsoprovides the deep information about the technological enhancement in industries and adopt thelatest technology to capture the market share by improving its product quality and financialposition. The main purpose of using business analytics is to gain the insight knowledge and datato provide the better and effective decisions to create a strategic value and gain competitiveadvantages.Analytics eco system si a system in which companies and business analyst uses variousanalytics tools to determine the need of its customers and create value. It also help companies toimprove its business performance by optimizing its cost and increasing its market share there arevarious methods of analytics used by companies such as follows:Descriptive Analytics:Descriptive analytics is used by analyst to describe and summarize thevarious raw data available through various sources and makes it easy to interpret by top level ofmanagements to understand the needs of its consumers and deliver effective products to satisfytheir needs and improve its business performance and its financial position (De Oliveira,McCormack and Trkman, 2012). It is an analytics which describe the past, past include the datawhich occurred in one year or in one minute. It underlies the data count, aggregate of a variousfiltered column in which basic maths are applied.Predictive Analytics:Predictive analytics is a root which has an ability to predict that whichmay happen. In this type of analytic managers make prediction in order to understand the future.It provides the estimates of the likely hood of the outcome which can incur in future. Thefoundations of predictive analytic is completely based upon the probabilities, companies usesthese statistics to make forecast the future sales while preparing budget for the company.2
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