The theory of bounded rationality proposed by Nobel Laureate Herbert Simon is evermore significant today with increasing complexity of the business problems; limited ability of the human mind to analyze the alternative solutions and the limited time available for decision making. Introduction of enterprise resource planning (ERP) systems has ensured availability of data in many organizations; however, traditional ERP systems lacked data analysis capabilities that can assist the management in decision making. Business Analytics is a set of techniques and processes that can be used to analyse data to improve business performance through fact-based decision-making. Business Analytics and Business Intelligence create capabilities for companies to compete in the market effectively. Business Analytics and Big Data has become one of the main functional areas in most companies. Analytics companies develop the ability to support their decisions through analytic reasoning using variety of statistical and mathematical techniques. Thomas Devonport in his book titled, “Competing on analytics: The new science of winning”, claims that a significant proportion of high-performance companies have high analytical skills among their personnel. On the other hand, a recent study has also revealed that more than 59% of the organizations do not have information required for decision making.
In a recent article based on a survey of nearly 3000 executives, MIT Sloan Management Review reported that there is striking correlation between an organization’s analytics sophistication and its competitive performance. The biggest obstacle to adopting analytics is the lack of knowhow about using it to improve business performance. Business Analytics uses statistical, operations research and management tools to drive business performance. Many companies offer similar kind of products and services to customers based on similar design and technology and find it difficult to differentiate their product/service from their competitors. However, companies such as Amazon, Google, HP, Netflix, Proctor and Gamble and Capital One use analytics as competitive strategy. Business Analytics helps companies to find the most profitable customer and allows them to justify their marketing effort, especially when the competition is very high. For instance Capital One has managed a profit of close to $1 billion in their credit card business in the recent past, where as many of their competitors have shown a loss of several millions in credit card business. There is significant evidence from the corporate world that the ability to make better decisions improves with analytical skills. This course is designed to provide in-depth knowledge of business analytic techniques and their applications in improving business processes and decision making.
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