Raghu was discussing with his friend Feroz about his startup venture and how he was progressing in it. He wanted Feroz to give some insights that would be helpful in his startup. That is when Feroz suggested him to hire a data scientist for this new venture. Raghu was quite ignorant about this and was perplexed at his suggestion.
“What are you talking about Feroz? What is a data scientist and why do we need one?”
“Raghu, why’re you so ignorant about current trends? You should know the need of the hour today. You know in my company data scientists play a pivotal role in decision making. We have data scientists at managerial levels. They help in making appropriate and strategic business decisions.”
“All right, if I am ignorant, please do explain me the need of business analytics and how it can help managers. I would also like to know that. Please enlighten me.”
Feroz’s suggestion to Raghu was apt in this modern business scenario.
Let’s understand why business analytics has become a must-know skill these days.
- Statistics can be converted into ‘insights’
Data Analysis has become of prime importance these days. Everyone wants to harness the potential of data. Statistics can help come to a conclusion which an individual cannot. Today, the importance of data has increased by leaps and bounds. Pattern of behaviours can be predicted by the management. For example, as a marketing manager, you come to know what is working effectively, what is creating ripples in the market, which strategy is yielding positive results, etc. In business Analytics, management can capitalize them and use them for making strategic, tactical and operational decisions.
- Applications in Various Areas
Business Analytics can see their applications in various areas such as risk management, marketing, supply chain management, customer analysis, web analytics, human resources, etc.
1. In Marketing, the manager can predict the consumer spending pattern, study seasonal changes by using business analytics. This can help them to strategically market their products in the economy, targeting the right audience.
2. HR Manager can use business analytics to understand the retention trends.
3. In CRM, it can be used to determine the preferences and likings of the customers.
4. In Pharma and Life Science sector, data analytics is useful in R & D of pharma sector, help in determining potential candidates for clinical tests, study the trends of the effects of a drug, etc.
5. In telecom industry, BA can be used to determine the advertising efficiency, optimum usage of fixed assets and infrastructure, labour, etc.
- Leverage information in managing the business
With the emerging trend of ‘Big Data’, it has become easier to gather information. However, mere availability of data is not enough. It is equally important to know what you do with that data. With Business Analytics, one can employ tactics that can be used to make smart business decisions, cost-reductions, etc.
- Lucrative Career Path
Data Scientists are in high demand these days, and have a highly lucrative career path. At an entry level, a junior analyst on an average level earns INR 5,00,000. On the other hand, at mid-management level, data scientists earn around INR 14,00,000 p.a and at leadership levels, senior/lead data scientist earn around 25,00,000 p.a.
Smart technology and Internet of things have ensured ease of collection of data, and predictions. Analysts make use of this data to help the business grow. Raghu was impressed with Feroz’s idea. In fact, instead, he has decided to even learn Business Analytics, which will be beneficial for his business. It’s time that young professionals realize the need of business analytics. If you’ve a fascination for numbers and statistics, with business analytics you can work out wonders for your business. Moreover, a person from any background can learn business analytics. It simply boils down to the fact whether you’re willing to be a part of the change.
India has a huge potential for growth of business analytics, and with the IT sector, India has already proved that it has a huge talent pool that can help businesses grow even from overseas origin. In the end, every data has a story to tell, and the past data can help make better decisions about the future.