Monday, June 11, 2012

From Henry Ford To Facebook: Business Data Analytics

In the global economy of the 21st century, business data analytics are an integral tool for encouraging prosperity within the global marketplace. Initially developed by Frederick Taylor during the 19th century, and then appropriately made use of by Henry Ford within the early 20th century, business analytics include the group of technologies that study a firm's prior performance in order to more strategically and efficiently prepare for the future. Ford and Taylor made use of business intelligence data to improve production and assembly lines. By the end of the millennium, however, with the introduction of computers and decision support systems in the 1960s, business intelligence data, especially data analytics, took the forefront as the most useful of analytics tools.

What are data analytics? Business data analytics are the statistical and quantitative analyses, including explanatory and predictive models, that are utilized by a business analyst to deduce fact-based decisions that will benefit a firm in some fashion. Data analysis for business may be used only for decisions made by humans, but it might just as easily be utilized to impel entirely automated decisions.

Business intelligence refers to a variety of useful tools, such as reporting, online analytical processing, querying, and other categories of alerts. Together or individually, these types of data assist in data analysis for business. Usually, this is a matter of answering important business questions concerning why something is occurring, what will happen if it continues, fortelling what will happen afterward, and what is the best possible outcome?

In today's world, data mining is utilized to obtain the majority of the data that delivers valuable business data analytics. While the phrase 'data mining' has a variety of definitions, it is most frequently considered any kind of large-scale collection, extraction, and/or analysis of data. Regardless of definition, data mining is a sampling technique used to identify some kind of trend for a larger population in an endeavor to understand behavior, dependency, and other things of the target population. After the results have been amassed, they are heavily reviewed by business data analytics in an attempt to help make well informed business decisions.

Business data analytics are utilized by well-known banks and creditors such as Capital One and Wells Fargo in an effort to rank consume
rs according to credit usage and risk. In this manner, analytics are very important to today's corporations, from evaluating financial services and retail sales, to identifying prices and marketing processes, to optimizing telecommunications, and much more, and thus, data analytics have caused every business to become increasingly more reliant on them. Additionally, a lot of larger companies make use of meta-analytical systems identified as enterprise resource planning systems that are huge analytics systems constructed from smaller ones. They draw tremendous amounts of data and host advanced software, both of which work together in unison.

Clearly, business data analytics are here to stay. With the introduction of social networking sites including Twitter and Facebook, and the many different marketing tools created by Google, data mining has become more personalized than ever before. This, in turn, will continue to facilitate significantly more useful results from business analytics, regardless of the specific industry of a given business.

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