UNDERSTANDING

BUSINESS DATA ANALYTICS

SHEDDING LIGHT ON THE FUNDAMENTALS

THE BRIEF
This paper introduces business data analytics
concepts and how they relate to the practice of
business analysis.

Business data analytics has become an area of

great interest for organizations, as it has been
recognized as a means by which organizations can
obtain valuable insights from data; supporting
more informed business decision making.

As a result, more organizations are investing in

business data analytics as a means to deliver on
their strategic imperatives, innovate, and obtain
competitive advantages in their marketplace.

Such investments are driving the demand for more

skilled professionals with business data analytics
knowledge and experience.
WHAT IS BUSINESS DATA ANALYTICS ?
Business data analytics is a practice by which a specific set of
techniques, competencies and procedures are applied to perform the
continuous exploration, iteration, and investigation of past and current
business data, for the purposes of obtaining insights about a business
that can lead to improved decision making.

Business data analytics can be defined more specifically through

several perspectives. These perspectives include, but are not limited
to business data:
• movement,
• capability,
• data-centric activity set,
• decision making paradigm, and
• set of practices and technologies.

Business Data Analytics as a Movement

Business data analytics as a movement involves a
management philosophy or business culture of
evidence-based problem identification and problem-solving.

Evidence through data is the driver of business decisions

and improvement. Evidence is not chosen to support a
preconception or point of view; instead, all available
applicable evidence is used to make informed
business decisions.

Business Data Analytics as a Capability

As a capability, business data analytics includes the
competencies possessed by the organization and its
employees. Business data analytics competency is not
solely limited to the ability of an organization to complete
analytical activities.

It also includes capabilities such as innovation, culture

creation, and process design.
Business Data Analytics as a Set of Practices and Technologies
Business data analytics is also considered a set of practices and technologies required to perform the
analytics work itself. These practices can be discussed in the context of five business data analytics domains:

BUSINESS DATA ANALYTICS DOMAINS RELATIONSHIP

IDENTIFY RESEARCH QUESTIONS SOURCE DATA ANALYZE DATA

USE RESULTS TO INFLUENCE INTERPRET & REPORT DATA

DECISION MAKING

Business Data Analytics as a Data-Centric Activity Set

As an activity set, business data analytics includes the actions required for an organization to use
evidence-based problem identification and problem-solving. Business data analytics involves six core
data-centric activities:

• accessing, • analyzing,
• examining, • interpreting, and
• aggregating, • presenting results.
Business Data Analytics as a
Decision-making Paradigm
As a decision-making paradigm, business data A LinkedIn Report conducted in
analytics is a means for informed decision making.
Through this lens, business data analytics is 2018 ranked Business Analysis
considered the tool of making decisions through amongst the Most In-Demand
the use of evidence-based problem identification
and problem-solving. Hard Skills of 2019 along with
Analytical Reasoning*
Business Data Analytics Objectives * [Link]
blog/trends-and-research/2018/the-most-in-de-
Organizational leaders frequently make business mand-hard-and-soft-skills-of-2018
decisions based on personal expertise and instinct.

Business data analytics removes cognitive and

personal biases from the decision making process by
using data as the primary input for decision
making. When performed well, business data
analytics can create a competitive advantage for the
organization.

For example, algorithms based on weather, soil, and other conditions have been found to be more
accurate in predicting the price and quality of red wine after it has been aged compared to the wine experts who
influence the decision making based on their own cognitive biases as to what they enjoy and do not enjoy
in a wine.

The objective of business data analytics is to explore and investigate business problems or opportunities through a
course of scientific inquiry. The specific objectives of business data analytics are dependent on the type of analysis
that is being performed.
 There are four types of analytics methods
DESCRIPTIVE Provides insight into the past by describing or
summarizing data.

DIAGNOSTIC Explores why an outcome occurred.

PREDICTIVE Analyzes past trends in data to provide future

insights.

PRESCRIPTIVE Utilizes the findings from different forms of

analytics to quantify the anticipated effects
and outcomes of decisions under
consideration.

Business Analysis and Business Data Analytics

The terms business data analytics and business analysis are frequently used interchangeably. However, there are
significant differences between the two terms. Business analysis is the practice of enabling change in an enterprise
by defining needs and recommending solutions that deliver value to stakeholders. Comparatively, business data
analytics is focused on the process of data analysis.

Business analysis provides the business context for business data analytics. Business analysis defines the focus for
the research questions being asked and sets the scope before data is collected. Business analysis also aids in the
collection of data and the implementation of the data collection processes.

Business data analytics is used to sort, process, and analyze the data once assembled.

Once the analysis of the collected data is complete, business analysis activities are performed to interpret the
results obtained from analytics; transforming information into business decisions.

Business analysis activities are performed to communicate the results of business data analytics and facilitate the
implementation of informed business decisions made as a result of what is learned from analyzing the data
collected.
 How Business Analysis and Business Data Analytics Intersect

BUSINESS ANALYSIS DATA ANALYTICS

• Enabling change by defining needs • Data analysis
FOCUS

and recommending solutions that • Gleaning insights from data

MAIN

deliver value to stakeholders • Reporting

• Provides context for the

research question Business
analysis
• Sorts, processes, and analyzes
• Sets the scope for the data collected to answer the
analytics initiative facilitates
RELATIONSHIP

research question
the process of
BETWEEN

• Aids in the collection of the data • Turns raw data into information
turning raw data
• Communicates the results into information to help decision makers make
• Facilitates informed needed to guide better informed decisions
decision-making informed
business
decision
making.
• Enterprise architecture • Data architecture
ARCHITECTURAL

• Organization architecture
DOMAIN

• Information architecture
• Process architecture • Technology architecture
• Technology architecture
REQUIREMENTS

• Features and functions • Reports, Dashboards, KPIs

FOCUS

BUSINESS ANALYSIS IN THE DATA SCIENCE AGE

Driving Industry Transformation
The first paper of the series focuses on how with the advent of data
okscience, several unexplored avenues could be experimented with,
to fuel drug discovery, prevent hospital readmission rates, and drive
better patient outcomes.

To support this, BA professionals need a paradigm shift in the

way they approach requirements management and view almost
everything with a “data” angle.

They should know the possibilities offered by technology; be able to

evaluate its utility, applicability, and the benefits in specific business
situations; and elicit and communicate requirements in a very creative
manner to implement a solution for a business problem.

DEVELOPED IN COLLABORATION WITH

In the data-driven economy, providing value means, being able to translate data rapidly into valuable
insights, and to communicate this information effectively, and with relevance.
DO YOU HAVE WHAT IT TAKES?

To learn more, visit: [Link]/bda

WANT TO READ MORE ABOUT IT?

We have selected our top 5 and most relevant
publications on the subject:

• Harvard Business Review. HBR Guide to Data Analytics Basics for Managers.
Harvard Review Press. 2019. Provost, Foster and Tome Fawcett.

• Data Science for Business: What You Need to Know about Data Mining and Data-
Analytic Thinking. O’Reilly. 2013. Holsapple, C., A. Lee-Post, and R. Pakath.

• A unified foundation for business analytics. Decision Support Systems Volume 64

Issue C. 2014. 130-141. Hubbard, D.W.

• How to Measure Anything: Finding the Value of Intangibles in Business. Wiley. 2014.
Davenport, T. H., Harris, J. G., and R. Morison.

• Analytics at Work: Smarter decisions, better results. Harvard Business Press. 2010.
In the data-driven economy, organizations are
looking to drive greater value from the
immense data they have access to individuals who
have the skills and knowledge to source, interpret
and translate data into valuable insights can
support more effective decision making.

To learn more about Business Data Analytics,

visit [Link]/bda

About IIBA®
International Institute of Business Analysis™ (IIBA®) is a non-profit
professional association founded in 2003 to support the
recognition and advancement of the business analysis profession
and discipline.

Through a global network, IIBA connects Members, Chapters,

Corporations and Partners around the world. As the voice of the
profession, IIBA works to maintain global standards of practice,
certifications, professional development and networking
opportunities.

 
Join us, become a member today. For more information
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