ERP Add on Products – SCM, SRM and WMS
Supply Chain Management (SCM): Improvement of supply chain is one of the last frontiers for improving productivity and supply chain visibility is the most important challenge faced by supply chain professionals. This is more relevant in the context of retail, consumer electrical and electronics industries where organizations are challenged by an environment of distributed operations, […]
Control Based Processes
To function efficiently any organization has to achieve “homeostasis”. This word is used to describe the state of affairs wherein an organization adapts to its environment and continues its normal operational activities. At a human level, our ability to adapt to hot or cold weather and continue living is an example of “homeostasis”. At an […]
Secondary Metric(s) – Meaning, Purpose and its Identification
A process driven by primary metric alone is not fool proof. Operations managers always know that they face trade-offs. With everything that is desired, there is a chance that something that is not desired will come in too. Hence to prevent these secondary metrics are required. Here is how to use secondary metrics to ensure […]
Historical Origins of the Present Global Economic Crisis
The Roots of the Present Economic Crisis The global economic crisis that started in 2008 has its origins in the events of the 1970s. That was the time when the United States reneged on its commitment to work under the Bretton Woods Agreement, which stipulated that countries must peg their currencies to gold and must […]
How Not to Put All Eggs in One Basket – De-Risking Strategies for Outsourcers
What is De-Risking ? Outsourcing is a process that involves selection of vendors who would then do the necessary work for their clients regarding handling such work that the clients deem can be done by Third Party Vendors. What this means is that the clients first narrow down the list of outsourcers that can be […]
The word analytics has come into the foreground in last decade or so. The proliferation of the internet and information technology has made analytics very relevant in the current age.
Analytics is a field which combines data, information technology, statistical analysis, quantitative methods and computer-based models into one. This all are combined to provide decision makers all the possible scenarios to make a well thought and researched decision. The computer-based model ensures that decision makers are able to see performance of decision under various scenarios.
Business analytics has a wide range of application from customer relationship management, financial management, and marketing, supply-chain management, human-resource management, pricing and even in sports through team game strategies.
Business analytics has been existence since very long time and has evolved with availability of newer and better technologies. It has its roots in operations research, which was extensively used during World War II. Operations research was an analytical way to look at data to conduct military operations. Over a period of time, this technique started getting utilized for business. Here operation’s research evolved into management science. Again, basis for management science remained same as operation research in data, decision making models, etc.
As the economies started developing and companies became more and more competitive, management science evolved into business intelligence, decision support systems and into PC software.
Business analytics has a wide range of application and usages. It can be used for descriptive analysis in which data is utilized to understand past and present situation. This kind of descriptive analysis is used to asses’ current market position of the company and effectiveness of previous business decision.
It is used for predictive analysis, which is typical used to asses’ previous business performance.
Business analytics is also used for prescriptive analysis, which is utilized to formulate optimization techniques for stronger business performance.
For example, business analytics is used to determine pricing of various products in a departmental store based past and present set of information.
Business analytics uses data from three sources for construction of the business model. It uses business data such as annual reports, financial ratios, marketing research, etc. It uses the database which contains various computer files and information coming from data analysis.
Business analytics can be possible only on large volume of data. It is sometime difficult obtain large volume of data and not question its integrity.
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Communication Systems and Groupware – Information System Concepts that Apply in All Functional Areas of Business
February 12, 2025
