Question

Why is there an explosion in the usage of analytic techniques in business?

Answer 1

Data Analytics refers to qualitative and quantitative techniques and processes used to enhance productivity and business gain.

Any business requires to see insight of the data tha affects it in real time to make proper changes into it.

In the highly competitive financial sector, where data volumes are exploding exponentially, optimising business performance through more agile decision-making is vital for business success. The relational database approach is not well suited for the purpose of analytics for many organisations due to growing volumes of data and user numbers.

The explosion in usage of analytical techniques in business is by and large due to following factors:

1) Reduce time complexity

Data for any company has increased by factor of more than 1000 and hence it need proper analytical tool to solve such large number of data.

2) Reduce space complexity

Analytical tools helps in reducing space by only storing data that are useful for future and creates space for temporary data and permanent data.

3) Increased accuracy

Analysing huge data with 0% error is important for a company and analytical techniques helps to do that.

4) Analytical techniques helps in profitability analysis, generating reports for legislative compliance, analysing sales and marketing campaigns and predicting buying trends.

5) Help us in detecting fraud data

Analytical tools helps in detecting the pattern of original data and eliminate fraud data from server.

6) Analysis of bussines value chain.

These are a few reasons, why a company should go for analytical tools to enhance Business to consumer (B2C) application.