What Is Business Analytics Software?

Business analytics software is any application that stores and processes data to help companies better understand their operations and find solutions to organizational challenges. It can go beyond basic statistical analysis and provide new perspectives regarding past trends, current performance, and future insights, helping to drive informed decision-making. Various platforms include built-in features to prepare and analyze data, create reports, and provide predictive modeling.

The right business analytics tools can help you accurately analyze business information by managing and processing data points across everything from customer profiles to internal finances. Learning about different business analytics software available and how to use it in your organization can help you make more informed data-driven decisions.

Types of business analytics software

You can choose from a number of business analytics software options designed to meet distinct data processing, storage, and reporting needs. You might want to consider the numerous approaches required to work with the data you have. The five main categories of business analytics methods can work separately or together depending on your data processing goals. These categories include:

• Descriptive: Takes historical data and tells a story about past performance to explain what happened in a particular scenario

• Diagnostic: Uses historical data to explain why a particular outcome occurred, often by looking at behavior patterns

• Predictive: Sources existing data to create models that anticipate future activity or performance

• Prescriptive: Recommends specific actions based on data predictions correlated across data sets

• Cognitive: Simulates human data analysis by using artificial intelligence and machine learning to guide decision-making

With a methodology in mind, you may also want to meet with leaders in your company to assess what software features are most important. For example, some may prioritize visualization tools, while others may think data source integration is critical. Factors that can differentiate business analytics software include:

• Sources: Can the software input or process data from multiple third-party systems at the same time?

• Training: Does the provider offer live or ongoing resources to help team members get the most out of the software?

• Access: Does the software require local installation or is the application and its data accessible via the cloud?

• Security: Can an admin establish permissions levels based on user profiles to ensure data security compliance?

• Scalability: Is the platform flexible enough to add more users and more data as the company grows?

Popular business analytics software

You’ll have dozens of business analytics software options to choose from. You can use the criteria you have already established to narrow the field. You might also consider some of the popular options available from these name brands.

1. Tableau

Tableau is a data-driven business analytics platform that presents data visualizations with simple drag-and-drop actions. This reduces the need for users to have an analytics or programming background to create reports. Tableau also integrates directly with Salesforce, making it easier for existing customer relationship management (CRM) users to work with their data without complicated integrations.

2. Google Analytics

Google Analytics helps users explore their website performance data to guide decision-making around marketing. Once integrated with an existing website, Google Analytics automatically tracks visitor data and creates reports to help you understand how website visitors interact with your content to optimize digital marketing campaigns.

3. Microsoft Power BI

Microsoft Power BI is a set of individual tools designed to connect data from different sources. This might be helpful if you are trying to draw conclusions from data spread across several platforms or managed by independent teams. Microsoft Power BI is also designed for users with varying levels of programming knowledge and more complex data analysis.

4. SAP Analytics Cloud

SAP Analytics Cloud incorporates artificial intelligence and machine learning models into a cloud-based platform that can be accessed anywhere. You can use SAP Analytics Cloud to understand historic data patterns while also forecasting future behaviors with augmented analytics.

What is business analytics software used for?

Business analytics software takes unprocessed data and organizes the information to help you make guided decisions. You might use these tools to prove assumptions regarding customer behavior or uncover new insights into revenue generation.

In addition to data-driven decision-making, business analytics software can also serve as centralized storage for all of your data. This can make it easier for you to maintain and update business information. It can also provide structure to data so the information you collect from potential and current customers can be easily analyzed.

Beyond decision-making, business analytics software can:

• Measure performance: You can assess existing operations, including individuals, teams, and campaigns, to uncover areas of high or underperformance.

• Improve security: You can establish security protocols and backups to ensure business data protection and access.

• Streamline operations: You can discover operational redundancies or challenges and optimize internal processes in response.

• Drive growth: You might use business intelligence to better understand market trends to determine new revenue opportunities.

Who uses business analytics software?

While business analytics software is traditionally used by operations teams, different departments across an organization can use these tools to improve their processes and output.

• Finance teams can forecast trends, create reports, and track essential revenue and income figures.

• Marketers can better understand customer behaviors and develop campaigns that target key audiences.

• Supply chain managers can spotlight inefficiencies and manage relationships with suppliers to reduce costs.

• C-suite executives in marketing, sales, human resources, and product development can also benefit from using these tools to guide decision-making and provide insights.

• Health care providers can collect and process patient data to improve care plans while optimizing revenue.

• E-commerce sites can use website analytics to understand consumer behaviors and create content that can boost conversions.

• In the manufacturing industry, business analysis software can monitor processes to improve quality, reduce waste, and enhance efficiency.

Business analysis is not specific to a single industry. No matter the industry, you can use business analytics to enhance operations, customer experiences, and revenue streams.

Pros and cons of using business analytics software

Business analytics software presents many advantages to organizations looking to improve their operations. Data-driven decision-making can help you make fact-based choices rather than relying on guesswork or opinions. By identifying trends, you can maximize opportunities to increase revenue while also mitigating risk. While implementing software solutions may be expensive these tools can provide tangible cost savings by optimizing operations and eliminating waste.

When choosing business analytics software, you might want to research how complex the system is to implement. Some platforms require advanced programming skills to integrate with data warehouses or produce reports. Another obstacle can be data quality. If your data is poorly organized or missing details, business analytics software may not be able to produce the reports you want.

How to get started in business analytics software

Starting a career in business analytics can require an understanding of how to work with complex data and the industry tools that help process that information. Business analytics software can provide insights to help direct decision-making across teams and strategies across industries.

With this widespread relevance, many different roles can use this software to bring value to an organization. One career is a business analyst, whose job is to use data to improve processes and business outcomes. Some other entry-level careers that can use business analytics software include:

• Project manager: Creates plans, schedules, budgets, and reports for task management

• Statistician: Uses numerical data to understand business operations and results

• Quality assurance specialist: Monitors the condition and standards of products

• Systems analyst: Researches and test software solutions to overcome business challenges

• Market researcher: Analyzes customer and competitor data to better position products

• Data architect: Manages data security, storage, and access to protect business intelligence

Education

The pathway to a job that uses business analytics software can look different depending on your career goals. Typically, these roles often require a bachelor’s degree in a related field, such as business. Related studies can include finance and information technology.

Experience

Boosting your knowledge through coursework is just one way to start. Internships and entry-level jobs can also give you experience that can prepare you for a career. Identifying a mentor to learn from can provide additional insight not only into a subject area but also into a specific company’s operations. Consider developing skills helpful to business analysis roles, such as problem solving, project management, and communication.

You might want to list out your education, on-the-job experience, and acquired skills on your resume to showcase to potential employers. This can help demonstrate your qualifications for the next step in your career.

Certifications

Earning additional certifications can demonstrate your proficiency in business analysis, enhance your resume and advance your career. These programs often provide insights into using data-driven decision-making and business analysis software to inform corporate decision-making.

Getting started with business analytics software on Coursera

Business analytics software can be a vital component of operational strategies for businesses. Learning how to use these tools might help you embark on a career in business analytics.

Learn more about analyzing and visualizing data with the Business Analytics Specialization by the University of Illinois on Coursera. For web-based analytics, explore the beginner-friendly Google Data Analytics Professional Certificate, also on Coursera. Upon completing either program gain a shareable certificate to include in your resume, CV, or LinkedIn profile.