What is business analytics?
Updated March 25, 2025
Written by Michael Feder
Reviewed by聽Kathryn Uhles, MIS, MSP,聽Dean, College of Business and IT
Business analytics involves using statistics and data to gain insights about operations and strategies. Business analysts are experts who gather, organize and interpret data. The overall goal of this analysis is to improve business operations and decision-making.
Business analysts can use four different approaches to their work. If you are interested in this field, it is important to understand these IT terms and the methods they describe.
- Descriptive analysis involves looking at past data to find trends and patterns that provide insight into performance and define areas for improvement.
- Diagnostic analysis looks at the same data as descriptive analysis, but the goal is to discover why something happened.
- Predictive analysis uses historical patterns and statistics to make forecasts about trends and events.
- Prescriptive analysis uses mathematical models to test different methods and practices to see which one is most likely to bring the best results.
A career in business analytics is an attractive option for someone with math and computer skills, or for people who are interested in business and are pursuing a degree in IT. Business analytics is currently a growing field and qualified IT professionals are in high demand.听
Business analytics involves using statistics and data to gain insights about operations and strategies. Business analysts are experts who gather, organize and interpret data. The overall goal of this analysis is to improve business operations and decision-making.
Business analysis can use four different approaches:
- Descriptive analysis involves looking at past data to find trends and patterns that provide insight into performance and define areas for improvement.
- Diagnostic analysis looks at the same data as descriptive analysis, but the goal is to discover why something happened.
- Predictive analysis uses historical patterns and statistics to make forecasts about trends and events.
- Prescriptive analysis uses mathematical models to test different methods and practices to see which one is most likely to bring the best results.
What does business analytics involve?
A professional working in business analytics works with data related to their employer鈥檚 industry, operations and finances. In this career, duties may vary from employer to employer. Some professionals focus on one specific area, while others have a broader focus. Here are some typical tasks:
- Establish data mining and organization applications with the help of other IT staff
- Analyze data and visualize it or create reports for company decision-makers
- Apply statistical analysis or mathematical models to data sets to help predict trends, manage risk or forecast performance
- Analyze price data to help come up with accurate pricing for products and services
- Assess the structure of a business and its operations to improve efficiency and cut costs
- Create simulations to test different methods and find which are most effective or efficient
- Analyze budgets to find ways to optimize spending
- Present findings to company executives and stakeholders
Who needs business analytics?
Businesses in a variety of industries utilize analytics information.听
- Large corporations聽typically hire in-house business analysts regardless of their industry.
- Consulting firms聽hire business analysts to work with companies of all sizes on a per-project or contract basis.
- E-commerce companies and online services, such as video streaming firms, often favor data-driven decision-making and rely heavily on business analysts.
- Tech industry companies聽rely on business analysts to streamline operations and make predictions.
- Insurance companies聽rely on business analysts to focus on pricing and risk management.
- Retail companies聽and other businesses with tight profit margins work with business analysts to streamline all aspects of their operation to increase revenue.
- Finance companies, lenders and banks聽rely heavily on data analytics and mathematical modeling to manage investments, mitigate risk, define financial trends and make forecasts.
Skills business analytics professionals need
Business analysts need both technical and soft skills to succeed. Someone who has chosen this professional path can develop their abilities during their undergraduate studies and hone them during internships or in an entry-level analytics position.
Here is a list at some of the skills needed:
- Communication skills are essential for this career. You will need to work on projects alongside other IT professionals. Furthermore, business analysts need to present findings to executives and stakeholders in an easy-to-understand, non-technical way.
- Problem-solving abilities are also essential because you need to come up with ways to find, organize and analyze data to solve specific issues or answer particular questions.
- Critical-thinking skills can help you look at data and mathematical models and develop insights that solve specific problems or provide answers.
- Goal-visualizing is an important ability in the field of business analytics. It helps you think creatively and persistently to find ways to reach the end goal of each analytics project, whether that is solving a complex problem, finding ways to improve operations, or making accurate forecasts about pricing and budgetary needs.
- Technical skills are necessary to run business analytics software, such as SAP BusinessObjects, datapine and IBM庐 Cognos庐. You also need to be familiar with statistical analysis and mathematical modeling. Though many business analysts will work with statisticians, they still need to understand the basics to correctly plan projects.
Business analysts need technical skills and the ability to apply them to solve real-world problems. You need a solid foundation and, in some cases, professional certification to qualify for entry-level jobs.听
Careers in business analytics
Here is a typical career path for those interested in a business analytics career:
Education
You can start on the career path of a business analyst by earning an undergraduate degree. Several options can enhance your preparation for this career. One of the most common is a Bachelor of Science in Business. You can also earn a Bachelor of Science in Management. Both these options will give you a strong base for developing your analytical skills.
In general, business-related bachelor鈥檚 degrees provide the basic knowledge necessary to move into a variety of business careers, including analytics.
You can start specializing during your undergraduate studies by taking courses in project management. At some universities, you can even earn a professional certificate in project management.
Finally, success in exams can help you advance your studies and qualify for important internships or analytics-related master鈥檚 degree programs. Therefore, preparing for tests is essential regardless of your chosen degree program.听
Certifications and licensure
Certifications and licenses are not necessary to get an entry-level position in business analytics. However, getting a certification can help you show your expertise in a specific area or show a general commitment to this career path.
Here are some common certifications for business analysts.
- from the International Institute of Business Analysis (IIBA) could be a logical first step for entry-level professionals.
- accreditation is a more advanced offering from the IIBA. It can help professionals who want to advance to a more specialized or more senior position.
- , from the Project Management Institute庐, can help you develop and show useful skills in developing plans for an analytics project.
Some employers may offer you a chance at certifications as part of their career development offerings.听
Interested in learning more about business analytics?
If you have an analytical mind and enjoy working with data, mathematics and numbers, business analytics could be a good career for you. It would also help if you had an interest in business and knowledge of the industry in which your company operates.
There are many online business degrees that can help you as you prepare for your professional future, including a Bachelor of Science in Business or a Bachelor of Science in Management.
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ABOUT THE AUTHOR
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at 爱污传媒 where he covers a variety of topics ranging from healthcare to IT.
This article has been vetted by 爱污传媒's editorial advisory committee.听
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