Business Analytics focuses on developing new insights and understanding of business performance based on data and statistical methods. We make extensive use of statistical analysis (including explanatory and predictive modeling) and fact-based management to drive decision making.

We use analytics as input for human decisions or may drive fully automated decisions. In other words, querying, reporting, and alert tools can answer questions. These are used to gain insight and drive business planning — in short business analytics (BA).

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Competing on Analytics

Thomas Davenport, professor of information technology and management at Babson College argues that businesses can optimize a distinct business capability via analytics and thus better compete. He identifies these characteristics of an organization that are apt to compete on analytics:

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• One or more senior executives who strongly advocate fact-based decision making and, specifically, analytics

• Widespread use of not only descriptive statistics, but also predictive modeling and optimization techniques

• Substantial use of analytics across multiple business functions or processes

• Movement toward an enterprise level approach to managing analytical tools, data, and organizational skills and capabilities

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