{"id":48,"date":"2026-02-05T19:03:38","date_gmt":"2026-02-05T19:03:38","guid":{"rendered":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/?post_type=chapter&p=48"},"modified":"2026-08-17T16:46:14","modified_gmt":"2026-08-17T16:46:14","slug":"ch-2-business-analytics","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/chapter\/ch-2-business-analytics\/","title":{"rendered":"CH 2 – Business Analytics"},"content":{"raw":"

Introduction to Business Analytics<\/strong><\/h1>\r\nThink about the last time you opened TikTok. Within minutes, sometimes seconds, your For You<\/em> page was already serving up videos that felt hand-picked just for you. Funny enough, they basically were. TikTok's algorithm is constantly analyzing data: what you watch all the way through, what you skip, what you like, what time of day you're scrolling, and hundreds of other signals, all to predict what will keep you on the app longer.\r\n\r\n \r\n

\"Business<\/p>\r\nBut here is the bigger picture. That same process of collecting data, finding patterns, and making smarter decisions is exactly what companies across every industry are doing right now. Nike uses it to decide which products to stock in which cities. Amazon uses it to predict what you will buy before you even search for it. Hospitals use it to improve patient outcomes. This is [pb_glossary id=\"1071\"]business analytics[\/pb_glossary]<\/strong><\/span>, and whether you realized it or not, it has been shaping your daily life for years. By the end of this chapter, you will not just understand what business analytics is. You will start seeing it everywhere.\r\n\r\n \r\n\r\n

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CHAPTER OUTLINE<\/h1>\r\n \r\n

2.1: What is Business Analytics?<\/strong><\/p>\r\n

Definition and scope<\/p>\r\n

The role of data in modern business decision-making<\/p>\r\n

Business Analytics vs. Business Intelligence vs. Data Science<\/p>\r\n \r\n

2.2: The Three Types of Business Analytics<\/strong><\/p>\r\n

Descriptive Analytics - understanding what happened<\/p>\r\n

Predictive Analytics - forecasting what might happen<\/p>\r\n

Prescriptive Analytics - recommending what should be done<\/p>\r\n \r\n

2.3: Why Business Analytics Matters<\/strong><\/p>\r\n

Competitive advantages of data-driven decisions<\/p>\r\n

Real-world impact across industries (retail, finance, healthcare, etc.)<\/p>\r\n

The growing demand for analytics skills in the workforce<\/p>\r\n \r\n

2.4: Key Components of a Business Analytics Framework<\/strong><\/p>\r\n

Data sources and data collection<\/p>\r\n

Data management and storage<\/p>\r\n

Tools and technologies (Excel, SQL, Tableau, Python, etc.)<\/p>\r\n

Communicating insights to stakeholders<\/p>\r\n \r\n

2.5: The Business Analytics Process<\/strong><\/p>\r\n

Define the business problem<\/p>\r\n

Collect and prepare data<\/p>\r\n

Analyze the data<\/p>\r\n

Interpret and visualize results<\/p>\r\n

Make and implement decisions<\/p>\r\n \r\n

2.6: Careers and Roles in Business Analytics<\/strong><\/p>\r\n

Business Analyst<\/p>\r\n

Data Analyst<\/p>\r\n

Analytics Manager<\/p>\r\n

Paths into the field and skills to develop<\/p>\r\n \r\n

2.7: Chapter Summary and Key Takeaways<\/strong><\/p>\r\n\r\n<\/div>\r\n \r\n

2.1: What is Business Analytics<\/strong><\/h1>\r\nEvery day, businesses are faced with thousands of decisions. Should we lower our prices? Which customers are most likely to leave? Where should we open our next location? Not long ago, most of those decisions were made based on experience, intuition, and gut feeling. Today, companies have a better tool: data.\r\n\r\nBusiness analytics is the practice of using data to make smarter business decisions. It involves collecting information, organizing it, analyzing it, and then using what you find to guide strategy and solve problems. In short, it turns raw numbers into useful answers.\r\n
Think of it like this<\/strong>. Imagine you run a small online clothing store. After a few months, you notice sales spike every Friday evening. You do not know why yet, but the data is telling you something. Business analytics is the set of tools and methods you would use to figure out what is happening, why it is happening, and what you should do about it. Maybe your target customers are browsing after their last class of the week. Knowing that, you could schedule your promotional emails for Friday afternoons and watch your revenue grow.<\/div>\r\nYou do not need to be a math genius to understand business analytics. At its core, it is about asking good questions and using available information to answer them. The math and technology are just the tools that help you get there.\r\n\r\n*It is worth noting that business analytics is often confused with a few related terms. Business Intelligence focuses on reporting what has already happened, essentially looking in the rearview mirror. Data Science goes deeper into complex modeling and artificial intelligence. Business Analytics sits in the middle, using data from the past to make informed decisions about the future.<\/em>\r\n\r\n
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2.2: The Three Types of Business Analytics<\/strong><\/h1>\r\n

Not all analytics work the same way.<\/h3>\r\nThere are three main types, and each one answers a different kind of question.\r\n\r\nWHAT HAPPENED?<\/span>\r\n\r\n \r\n\r\n \r\n\r\nDescriptive Analytics<\/strong> looks at what already happened. It summarizes past data to give you a clear picture of where things stand. It\u2019s sometimes called the simplest form of data analysis because it describes trends and relationships but doesn\u2019t dig deeper. If a company pulls up a report showing that sales were down 10% last month, that is descriptive analytics at work. Think of it like checking your bank account balance. You are not predicting anything yet. You are just getting the facts.\r\n
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IRL Example<\/p>\r\n\r\n<\/header>\r\n

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Think about something super relevant: your phone\u2019s screen time report.<\/p>\r\n

Every week, your phone shows you stats like:<\/p>\r\n\r\n