4 Types of Business Analytics and How They Are Used
PUBLISHED:
4 Types of Business Analytics and How They Are Used
Business analytics involves using data analysis and statistical methods to make informed decisions. CIAM offers various MBA programs in California, including an MBA in Executive Management with a concentration in Business Analytics. Here are four types of business analytics and how they are used:
Diagnostic Analytics
Diagnostic analytics provides insights into specific trends by uncovering patterns and relationships within data. Retailers might use pattern recognition to analyze sales data and identify seasonal trends or patterns in customer purchasing behavior. In healthcare, diagnostic analytics can explore the correlation between patient demographics, lifestyle factors, and the occurrence of specific medical conditions. Financial institutions can use data mining techniques to analyze customer transactional info to identify irregularities that may indicate fraudulent activities. MBA programs in California include courses in the Management of Information Systems that explore the role of technology in business decision-making. Diagnostic analytics may be integrated into these courses to help students understand how data analysis contributes to managerial decision support.
Predictive Analytics
Predictive analytics uses statistical algorithms and machine learning techniques to identify the probability of future outcomes based on historical data. CIAM offers Applied Probability and Statistics in Data Analytics as one of the courses to help graduates grasp predictive analytics. Credit card companies use predictive analytics to detect potentially fraudulent transactions by analyzing spending patterns and transaction locations. Predictive analytics helps organizations predict which customers will likely churn or discontinue using their products or services. By analyzing customer behavior, engagement, and historical data, businesses can take preventive measures to retain valuable customers. Insurance companies use predictive analytics to assess the risk of policyholders making claims, allowing them to set appropriate premiums.
Big Data Analytics
Big data analytics involves analyzing large and complex datasets beyond the functionalities of traditional data processing methods. CIAM offers an Advanced Analytics for Business course to equip graduates with considerable data skills. Students learn about data cleanup, data exploration analysis, forecasting, classification, and clustering. In the manufacturing sector, experts use sensor data to predict when machinery and equipment are likely to fail, allowing them to perform the correct maintenance. Businesses analyze large datasets on employee performance, engagement, and recruitment to make informed decisions about talent management, workforce planning, and employee satisfaction. Online companies can also analyze customer data to tailor marketing campaigns and advertisements based on individual preferences and behaviors.
Prescriptive Analytics
Prescriptive analytics predicts future outcomes and recommends actions to improve a business process. Airlines use prescriptive analytics to optimize revenue to adjust ticket prices based on demand, time until departure, and competitor pricing. In project management, prescriptive analytics can assist in allocating human resources based on skills and availability, optimizing project timelines and resource utilization.
Pursue MBA Programs in California
CIAM offers master in business administration programs in California focusing on business analytics to help graduates make informed decisions by leveraging data analysis techniques. MBA graduates proficient in analytic tools can adapt easily to the evolving digital landscape, staying relevant in their careers. Register for an MBA program through our website or contact us for more details.
