The Importance Of Application Of Business Analytics
Davenport and Harris (2007) definition, which defines BA as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions”. Application of business analytics is not a new concept, but recently it has reemerged with immense development in Big Data. Emerging technologies like cloud services and Hadoop enable business analytics to assist entrepreneurial organizations with descriptive, predictive and prescriptive analysis. Companies are progressively being capable to access huge amount of data and analyze them to make informed decision regarding day to day work, innovation support that can lead to growth and advantage among the competitors. Sharing data internally as well as across the organizational borders drive innovation. This practice might be hard to implement in regulated industries but the capability to innovate using data is highly restricted to data driven organizations. Data with analytical insights has the capability to kickstart innovations to reinvent business models. Organizations with data sharing, data security and data governance form the foundation for innovation processes. Additionally smart machines pave ways to establish innovative ideas by taking inferences from data and study it with the help of specific algorithms and this helps to replace human skills and carry out time taking tasks allowing managers to concentrate more on strategic issues.
Successful innovations are those that carry business processes in par with customer requirements. New innovation can be easily established if it is in orientation to customers. Organizations without customer data know little or nothing about their customers which will eventually make customers feel ignored or less valuable; Hence it is important to have customer data to be retrieved, stored and made available within the company through data warehouses. Integrating Data warehouses and business intelligence for functional purpose serves as the key to successful relationships with customers by providing quality information.
Business intelligence go hand in hand with knowledge management, it is nothing but delivering correct information in the correct format, in the correct time. The major highlight of business intelligence and its relation to customer relation management is personalization. Personalization helps company to understand and redress customer needs the way they expect at the time they want to. Business intelligence support the different methods of communication with clients, such as email, web, phone etc. Customers according to their convenience, choose the channel through which personalized messages and support will be received. In short integrating business intelligence with customer relation management will generate loyal customers.
