Introduction to Business Analytics

Business Analytics refers to the statistical and IT techniques that are used to analyse data for the purpose of organisational(mostly) decision making. Proper analysis of quality data(which is subject to availability)helps in coping up with the competitive world of business. The three types or levels of analysis include descriptive, predictive and prescriptive.

Descriptive analytics: It is the ‘mining’ of data as to find out what happened in the past. Here the data available is interpreted in a human comprehensible form describing the past events which paves way to the next level. An example would be the repayment history of the customers who has taken loans from a bank.

Predictive analytics: It is the forecasting of the future events based on the descriptive data available. As a continuation to the above example, determination of credit scores to the borrowing customers in a bank which helps in knowing who all are without any default making the repayments.

Prescriptive analytics: This is a complex level analysis as it involves such models and techniques in finding a solution or suggestions for a future course of action. It helps the bank in determining what all measures are to be taken to make the loan repayments to happen without default and also to lend more loans to the customers with good credit scores.

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