As a person who works as a Business Development Expert in an Agile environment, listening to the presentation about the challenges of Business Analytics was quite attractive. Before starting the blog post, let me start with the definition, what is Business Analytics?
Business Analytics is the art and science of discovering new insights for your business by applying statistical and artificial methods. It can help the company leaders in decision-making and problem solving, providing customer-based campaigns, segmentation and so many more. However, as the advantages of Business Analytics increasing, it becomes more challenging.
In the real world, generated data is dirty, incomplete, incompatible. If one manages to clean it and make an output out of it, that unused data will come as valuable as gold. If we get into the business analytics lifecycle, the first and important phase is reliable data collection. If the company is using data that is not reliable or not related to the issue, no matter how effective you apply machine learning algorithms - the output will be not useful. The next phase is data processing - converting it into needed files, cleaning unnecessary details, and make it stable. The following phase is about data mining and model development. It is considered as the main stage as the quality of applied algorithms affects the quality of output. The next phase is extracting insights of which quality fully depends on the previous stages. In this stage, the plan is developed, findings are reported, the final refinements are done. In the end, the developed model is implemented in a real-world environment.
Despite the fact that the process seems very easygoing, the business data presents challenges at this moment. The first challenge - poor quality data. As stated in one of my favorite quotes - garbage in, garbage out - data highly affects the output of all the development. In other words, even if the most effective machine learning algorithm is applied to the garbage, the result still will be garbage no matter what. The next challenge is the visual representation of data. The case is if you have brilliant data and model applied, in case you can not present and visualize it graphically, it can not be sold and get its value. Another important challenge is collecting real-time and meaningful data. Outdated data can have significant negative impacts on decision-making. With real-time reports and alerts, decision-makers can be confident they are basing any choices on complete and accurate information.
As stated clearly - data is the new oil 🙂 If you have the ability and analytical skills to process it, it will become as valuable as oil.