Analytics, in the business world, refers to the science and art of analyzing data to extract insights, patterns and trends that can inform strategic and operational decisions. With the data revolution that has occurred over the past few decades, analytics has gone from being a useful tool to being essential for most businesses.
Companies use analytics for a variety of purposes. In marketing, analytics can help companies understand customer behavior, from which products are the most popular to which advertising tactics are the most effective. In operations, analytics can be used to optimize the supply chain, reduce costs and improve efficiency.
An example might be a retail store that uses analytics to analyze sales. By examining the data, they may discover that certain products sell better at certain times of the year, or that certain promotions have a significant impact on sales. This information can be used to inform the store’s inventory, promotion and pricing strategy.
