Question

In some organizations, business analytics is considered part of IT, and the Business Analytics Competency Center reports to the IT department. What might the advantages and disadvantages of this arrangement? In what kinds of organizations would this be the best choice?

Answer 1

Business analytics is the process in which the business data is being collected, sorted, processed and then further studied to convert into into relevant information and insights to develop the strategies and analytics for the business organisation. On the other hand, IT refers to Information Technology where the use of information through the technology is being conducted and products and services are designed by using the best benefits of the technology that is being provided. Many organisations like Google and Amazon rely solely on the Business Analytics and Information Technology to work together and generate the common result and targets. They use the best technology provided to generate the most effective data analysis techniques and ideas which helps the firm to achieve a higher sustainability level.

Advantages:

1. Lower Cost: As the department of Business analytics and research is combined with the Information Technology department, the most effectuve benefit which is enjoyed by the organisation is high profits and least costs. As the cost of two departments are merged, the risk and other expenses are also shared which helps the organisation to produce better results.

2. Modernised Techniques: By using technology for managing abd capturing the data, the companies have achieved and unlocked the most modernised techniques of dealing with the data and how effectively the data could generate the relevant information the company is seeking for.

Disadvantages:

1. Difficulty to Control: Although the costs are reduced, the task of managing and controlling the department of business analytics and IT becomes even harder. It's hard to set up standards and control and evaluate their performance on the basis of standards allocated.

2. High skills required: One cannot be assigned quickly for the following task. A high skilled worker with a good knowledge about both the IT and business analytics is required to fill the position for the job to be conducted which makes it a big disadvantage.