Written By
GCE Editorial Team
Business analytics is the practice of using data, statistical methods and technology to analyze business performance. It helps organizations identify trends, solve problems and create strategies to drive growth and efficiency.
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Approved and verified accurate by the Program Manager of the Colangelo College of Business on June 23, 2025.
The views and opinions expressed in this article are those of the author’s and do not necessarily reflect the official policy or position of Grand Canyon University. Any sources cited were accurate as of the publish date.
Business analytics refers to the methodology and practice of compiling, analyzing and interpreting data in order to develop data-driven insights that can then be used to make smarter, more impactful business decisions. All sorts of organizations across industries and sectors can benefit from making decisions informed by hard data.
Business analytics is also a field of study. You can major in this field as an undergraduate business student or continue your education in business analytics with a graduate business degree.
All types of organizations can benefit from making smarter decisions informed by data. Take the hypothetical example of a toy company. The executives at the toy company want to expand their product line and make new toys available in time for the holiday shopping season.
They could take one of the following actions:
The toy company executives might get lucky with the former route, but they’re more likely to achieve stronger sales with the latter strategy. In order to use the second strategy, the toy company executives need the insights produced by business analytics.
In short, business analytics can allow an organization to increase revenue and cut costs by making smarter decisions that are aligned with the organization’s strategic objectives.
In the field of business analytics, professionals rely on four primary types of analytics to interpret data and guide decision-making. The four main types of business analytics are:1
When comparing the main types of business analytics, it’s important to note that one type isn’t “better” than the others. Rather, all four are used together at varying times to generate robust business insights that fuel informed decision-making.
Business analytics and data analytics are similar and overlapping areas. Both areas focus on data cleansing and data visualization, along with tools and techniques related to data mining and machine learning. Business analytics primarily focuses on solving business problems and gaining insights on business performance, beyond traditional accounting and finance techniques. Data analytics is a broader discipline that can encompass multiple areas including business performance, healthcare, sciences and more.
Business analytics can be useful across all departments of a company. From finance, operations, human resources and beyond, business analytics can help companies run more smoothly, reduce inefficiencies and improve their impact. For example, marketing executives can use business analytics-derived insights to better understand their target demographics and, consequently, develop more effective marketing campaigns.
There are many potential benefits of incorporating business analytics into a company's decision-making. These can include:
In short, business analytics can help companies reduce costs, boost revenue, make better strategic decisions and build a loyal customer base.
Business analysts rely on sophisticated tools and techniques — far beyond simple data review — to transform raw information into strategic insights. Some of the commonly used tools, approaches and techniques include the following:
The field and practice of business analytics can be supported by several hard and soft skills. Some of the most important skills used in business analytics include the following:2
These skills are critical for thriving in business analytics roles in industries like finance, marketing and technology.
Grand Canyon University offers bachelor’s and master’s degrees teaching a wide range of business competencies, including business analytics. Enroll in the Bachelor of Science in Business Analytics degree or the Master of Science in Business Analytics degree and examine both foundational and advanced topics in data mining, data visualization and more. Fill out the form on this page to request a consultation with a university counselor who can help you plan your future at our private Christian college.
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