LACOPIA, Roseberry L Nov.

11,2023
2A10 IT APP

Answer the following questions:

1. How does data analytics contribute to improving decision-making processes within organizations,
ultimately leading to increased business success?
Through the help of data analytics, the organizations’ problems are being identified and solved
immediately which is necessary for a business to prevent further harm or loss in profit. With the detailed
data analytics process using the IMPACT Cycle, organizations are able to look at the root cause of the
problem, find the data that is relevant to formulate a solution, find the relationship between the variables,
ask for second opinions, and finally communicate it to the interested parties to help in decision making
and these decisions would be evaluated after some time. Data analytics also helps estimates and
valuations that is important in preparations of financial statements that organizations use to evaluate their
past performance as a company.
2. Provide examples of industries or fields where predictive analytics has had a significant impact. How
does it enhance forecasting and planning?
Predictive analysis would have a significant influence in merchandising industries as they would need to
know what products to sell. There are some factors that would have to be considered in formulating
forecast such as weather or season, customer preference, age, sex, geographic, and prices. Therefore,
predictive analysis is necessary is this field so that they would be able to avoid loss and have better sales.
Another example would be in the food industry such as restaurants as they face seasonal patterns in
everyday basis. Restaurants are usually busy during dinner time, thus, they must forecast when it would
optimal to prepare food, the number of employees needed in for the day or night, and their best sellers.
3. Explain how data analytics techniques are employed in the analysis of financial statements. What
insights can be gained through data-driven financial analysis, and how do these insights benefit
stakeholders?
In using data analytics in the analysis of financial statements, it makes it more credible and error-free. As
through data analytics, there is a thorough process or steps of identifying which data to include for the
preparation of the financial statement. A data-driven analysis is based on values to reflect the performance
of the organization. This is very important as this is the real value of the organization though, some would
be overwhelmed by it but it is the most helpful in decision making. Therefore, through this, shareholders
would be able to picture out the actual gain or losses of the organization and decide based on what is
faithfully represented to them.