Business Analytics Flashcards
is the use of data, information technology, statistical analysis, quantitative methods, and mathematical or computer based models to help managers gain improved insight about their business operations and make better, fact based decisions.
Business Analytics
often used interchangeably with Business Intelligence
Business Analytics
is used to refer to the overall practice of data analysis in a business context
Business Intelligence
refer to the deeper, more advanced methods of analyzing data
Analytics
it is the process that involves data, the tools to gather and interpret it
Analytics
is primarily a decision making tool
Business Analytics
Some common decisions include in Business Analytics
Pricing Decisions
Decisions to target consumer segments
Merchandising Decisions
Location Decisions
is used to gather data and turn it into actionable items to create strategic and tactical decisions
Business Analytics
are measures of quantitative assessment commonly used for assessing, comparing, and tracking performance or production
Metrics
it takes whatever measure in the organizations data and applies calculations and comparisons to them
Metrics
are the raw numerical data
Measures
any data item that can be subject to the four basic arithmetic operations
Measures
these are specific metrics that help measure a company’s success
Key Performance Indicators
this helps simplify analysis and opens up discussions in strategy meetings by having a single interactive page displaying all the relevant metrics
Key Performance Indicators
Examples of Commonly Used Metrics
Sales vs. Targets
Current Period Sales vs. Previous Period Sales
Sales vs. Returns
Sales vs. Invoice
Truck Utilization
Customer Segmentation
Hiring Rates
Occupancy Rate
Service Level Agreement
Lead Summary
one of the most universal basic metrics
Sales vs. Targets
it simply shows the difference between actual sales numbers against the target figure
Sales vs. Targets
used as a measure of sales over various periods of time
Current Period Sales vs. Previous Period Sales
when a product that has been sold is returned at an unsellable state, it will automatically count as a loss to the company
Sales vs. Returns
this metric will allow the company to monitor how much of the products sold actually get delivered without issue to its customers
Sales vs. Returns
sales numbers as the “unexpected sales” value, while the invoice numbers are the “actual sales” value that will count towards the company’s profits
Sales vs. Invoice
distribution companies deliver products from their warehouse to their clients
Truck Utilization
this metric will help maximize how each truck is used making sure that it is close to full capacity and have routes that will serve the most customers coming to and from the distribution center
Truck Utilization
knowing the customer is one of the quickest ways to expand a business earning potential
Customer Segmentation
this metric will enable the business to know which of their customers make up the bulk of sales
Customer Segmentation
this metric will help them monitor applicants and how they get past each stage of hiring to figure out if new hiring practices should be relaxed or be more stringent
Hiring Rates
measures the rate at which rooms are reserved in Hotels
Occupancy Rate
it gives an idea of how effective the organization is by getting the number and kind of tickets and the average response time
Service Level Agreement
a marketing campaign will have different ways to generate leads when trying to drum up interest on a product and/or brand awareness
Lead Summary
