MODULE 2 - Types of Business Analytics
Business analytics is an interactive process of solving a business problem, finding and
analyzing the data required to obtain a solution, and interpreting the results to provide
recommendations for decision making. There are four types of business analytics that involve
from simple reports to the most advanced optimization techniques. These are usually
implemented in stages which are interrelated with each other that offer various insights.
The diagram below was being discussed by the Analytics Association of the Philippines:
Business Analytics used data as the basis for decision making which is often seen as more
objective. Data are being processed scientifically to convert them to insight that can be used for
better planning, quantifying risk and lastly choosing the best course of action from the
developed alternatives.
This lesson will help us to further understand the nature of concepts of analytics that makes it
better alternatives for the traditional decision making strategies.
Acquiring New Knowledge
Advantages of Business Analytics:
1. Eliminate guesswork
2. Get faster answer to your question
3. Get insight into customer behaviour
4. Get key business metrics reports when and where you need them
But for us accountants?
“Why is it important?”
“What does it have to do with accounting?” “What do number tells us?”
“Can we analyse this in real-time?”
Accountants use data analytics to help businesses uncover valuable insights within their
financials, identify process improvements that can increase efficiency, and better manage risk.
―Accountants will be increasingly expected to add value to the business decision making within
their organizations and for their clients,‖