The Industrial Revolution has been defined as the transition from creating goods by hand to using machines. It has transformed our societies and the world around us. We have witnessed this transition in terms of the epoch of steam engine, era of science & mass production, and the upsurge of digital technology.
Today every business is using digitised services. The global tech companies, the local grocery shops in your neighbourhood, as well the fruit and vegetable vendors near you are also using digital platforms. Huge data is getting generated with the velocity that we haven’t experienced earlier. The variety of data generated out of these transactions has veracity and finding a value out of that is not only important but challenging too!! Technology and data are considered as the new oil for businesses across sectors. And here comes the term Business Analytics.
Frankly speaking Business Analytics is the process by which businesses use statistical methods and technologies for analysing historical data. This helps them to get new insights and also improves strategic decision-making. Today Business Analytics is emerging as one of the most lucrative career option in terms of the salary and growth. Maybe, one may refer to the Glassdoor, Gartner or McKinsey reports.
Business analytics and Data analytics are the two different functions. While business analytics focuses on the larger business implications of data and the actions resulting from the insights; data analytics combs through huge datasets revealing patterns, trends, helping to draw conclusions supporting the business decisions. Business analytics data sources are defined in advance based on project goals whereas data analytics deals with more ad hoc analysis with underlying data sources being added as the correlations are uncovered. Business analytics is more reflective and descriptive while data analytics attempts to answer precise questions and ascertain new discernments. Data analytics assists the line of business managers and data analysts whereas business analytics serves CXOs, analytics manager, Data Warehouse engineers and business analyst. Although they are different, in practice expert feel that the line between the two is getting faded and the individual who is interested in making a career should look at it more holistically.
According to ‘Analytics India Industry Study 2022, the analytics industry recorded a substantial increase of 34.5% on a year-on-year basis in 2022, with the market value reaching USD 61.1 billion. Various studies suggest that 3.5 quintillion bytes of data is created every day. In addition, the post-pandemic changing business models are also contributing to the data and insights that are required to draw value out of the huge data. The demand for tech-solutions is transforming the industries. While data is growing, demand for business analytics professionals and analysts is also growing, but there is a deficit in supply side. So, this is the right time to get into this domain.
The role of a business analyst is constantly evolving and changing. Identifying and then prioritizing technical and functional requirements tops the business analyst's list of responsibilities. Today companies rely more on data for business operations, and every company has different sets of issues that they expect an analyst can address. So it varies from dealing with outdated legacy systems, to changing technologies, broken processes to poor client and customer satisfaction. Strong understanding of regulatory and reporting requirements as well as skills in analysing, forecasting, budgeting along with the understanding of key performance indicators is the added advantage. So a business analyst needs to have good communication and consulting skills, analytical thinking, problem solving and detail-oriented attitude and technical understanding.