Organizations often use business analytics to gain insight, that informs them on their decisions. Effective business analytics use statistical data of the organization which acts as a great asset to the organization. This business analytics measure past and present performance, these performances are used to predict the future of the company. This paper discusses disastrous outcomes that organizations face when they fail to use statistics in business analytics, challenges faced when creating business analytics and best statistical practice for proper business analytics.
Disastrous outcomes of not using proper business analytics
Organizations that do not make adequate use of the statistical data are likely to experience huge losses. This is because, statistics research can be used to identify the best markets for a given product(Jank). When companies cannot make the best use of their statistical data, they miss these opportunities and end up making huge losses. These Companies are also prone to business risks, they cannot identify future risks hence, they do not have sufficient measures to prevent themselves .Statistics can be used to determine future bankruptcy or the probability of customers to default on loans or any other risks that may affect the business.
Challenges in performing effective business analytics in the past.
The Economic environment has been changing rapidly; organizations were struggling to understand the market. Due to these changes, organizations could not get useful data to help in performing an effective business analysis. Organizations did not only suffer from environmental changes, but also, they had not developed a culture of managing their data correctly and documentation of every activity in the organizations(Denk and Grossmann). When data is well managed, it is easy for the expert, using proper statistical tools, to come up with an effective business analysis.
Despite these challenges, best statistical practice will help improve the situation. Best statistical methods involve good data management. Good management of information makes it easier for the analyst to find relevant data needed for analysis. Experts have also come up with proper tools for modern data analysis .Organizations do not have to wait for long to get reports on the business analytics.
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