COMPETITIVE ADVENTAGES

OF BUSINESS ANALYTICS
BUSINESS ANALYTICS:
From manual effort to machines,
there has been no looking back for humans. In
came the digital age and out went the last iota of
doubt anyone had regarding the future of mankind.
Business Analytics, Machine Learning, AI, Deep
Learning, Robotics, and Cloud have
revolutionized the way we look, absorb, and
process information. While there are still ongoing
developments happening in several of these
advanced fields, business analytics has gained the
status of being all-pervasive across functions and
domains. There is no aspect of our lives untouched
by Analytics.
COMPETITIVE ADVANTAGE:
Competitive advantage refers to
factors that allow a company to produce goods or
services better or more cheaply than its rivals.
These factors allow the productive entity to
generate more sales or superior margins
compared to its market rivals. Competitive
advantages are attributed to a variety of factors
including cost structure, branding, the quality of
product offerings, the distribution network,
intellectual property, and customer service.
COMPETITIVE ADVENTAGES OF
BUSINESS ANALYTICS:
• Business analytics for organizations is becoming a competitive advantage and is now
necessary to apply business analytics, particularly its subset of predictive business
analytics. When business analytics initiatives are adopted correctly businesses are
guaranteed success. The use of business analytics is a skill that is gaining mainstream
value due to the increasingly thinner margin for decision error. It is there to provide
insights, predict the future of the business, and inferences from the treasure chest of raw
transactional data, that is internal and external data that many organizations now store
(and will continue to store) as soft copy. Hence, businesses should priorities analytics
efforts to differentiate themselves from their competition to gain a bigger market share
through high-value opportunities.

• Some organizations are willing to take this leap of faith. Through experience or
experimentation, they succeed. Through a combination of time, trial, and error, they
develop an awareness of what works.
• It’s pithy, but it’s true: Making better decisions leads to better results, and
business analytics helps organizations make better decisions. Counterintuitively,
however, the specifics behind why this is so are harder to explain. Even those
with extensive experience in the field often struggle to explain how business
analytics supports competitive advantage beyond saying that “it creates better
outcomes.” Although true, it lacks clarity, and the link between being smarter
and achieving success remains vague.
• Business analytics enables differentiation through the
various analytics models. It is primarily about driving
change through analytics priorities. Business
analytics drives competitive advantage by generating
economies of scale, economies of scope, and quality
improvement. Taking advantage of economies of
scale is the first way organizations achieve
comparative cost efficiencies and drive competitive
advantage against their peers.
Wrapping it up:
For any company to survive, it must have a competitive
advantage. To be competitive, businesses must find new ways to
minimize expenses, better allocate resources, and devise ways to reach
out to each of their clients personally. All of this is possible thanks to
data analytics. Data analytics delivers unique insights that are not
available through other methods. These are the kinds of information that
can help other companies make better use of their resources, decrease
expenses, and personalize their offerings to gain a competitive
advantage.
THANK YOU