HW1

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School

Hillsborough Community College *

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Course

581

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Information Systems

Date

Dec 6, 2023

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docx

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Uploaded by coreano

In today's world, data analytics has emerged as a vital tool in guiding strategic decision- making processes across various industries, such as healthcare, retail, and finance. The ability to collect and analyze vast amounts of data has changed the way organizations analyze and make decisions. Data analytics can provide an organization with an abundance of opportunities to gain a deeper understanding of their operations, market trends, and customer behaviors. By using detailed information, organizations can understand and determine what happened in the past. For example, retail stores can use historic purchases such as Beats headphones to determine when their product will go on sale, which in this case is once a year during the beginning of the school year. Analyzing data collected from targeted markets can also help companies more swiftly identify trends and patterns and then customize products or services to meet these needs ( 5 key reasons why data analytics is important to business ,2022). An organization such as a financial intuition will use predictive analytics to assess risk factors and predict the probability of loan defaults based on historical patterns. Predictive analytics will also provide the best course of action to detect risks and opportunities, which will allow businesses to better optimize decision-making. process of using data to forecast future outcomes. The process uses data analysis, machine learning, artificial intelligence, and statistical models to find patterns that might predict future behavior (Google,2023) Data analytics can also improve operation efficiency by streaming and optimizing operations. Data analytics can help you identify inefficiencies in your business processes and

operations (Das,2023). Nowadays, businesses are reliant on data analytics applications to enhance efficiency and productivity levels. For example, manufacturing companies can use data collected by sensors and machine learning algorithms to predict machine failures. Which allows for anticipated maintenance that can prevent costly downtimes and provide a competitive edge. Companies such as Amazon are another example of how a company will utilize data analytics to improve operational efficiency. Amazon deliveries utilize route optimization algorithms based on historical traffic data. By utilizing the best routes for the driver, it can also reduce fuel consumption and enhance delivery drop-offs. Data-driven decision making (DDDM) is another way businesses use collected data to support and validate a course of action before committing to it. DDDM is important for companies as it will make decisions based on facts instead of biases and be fair and balanced. Data-driven decision-making is defined as using facts, metrics, and insights to guide strategic business decisions that align with goals, strategies, and initiatives ( What is data-driven decision making? (and why it's so important) ). An example of real-time use of DDDM is professional sports. Professional teams rely heavily on player performance analytics for strategic planning. During a game, coaches can make informed decisions about which players to have on the field and strategic play strategies based on statistical analysis. Data analytics serves as a foundation for modern decision-making processes across various sections. The ability to derive insights from enhanced data insights, improve operation efficiency, and make evidence-based decisions As technology continues to improve and evolve,

the use of data analytics will more than likely continue to play an increasingly vital role in shaping the future of organizational decision-making. References: 5 key reasons why data analytics is important to business . 5 key reasons why data analytics is important to business | Penn LPS Online. (2022, October 20). https://lpsonline.sas.upenn.edu/features/5-key-reasons-why-data-analytics-important- business Das, S. (2023, July 10). Supercharge your operational efficiency with Data Analytics . Rapidops Solutions Pvt. Ltd. https://www.rapidops.com/blog/supercharge-your-operational- efficiency-with-data-analytics/#:~:text=Data%20analytics%20can%20help %20you,improve%20productivity%2C%20and%20increase%20profitability. Google. (2023). What is predictive analytics and how does it work? | google cloud . Google. https://cloud.google.com/learn/what-is-predictive-analytics#:~:text=Predictive %20analytics%20is%20the%20process,that%20might%20predict%20future %20behavior.

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What is data-driven decision making? (and why it’s so important) . Full-Service Market Research Company. (n.d.). https://www.driveresearch.com/market-research-company-blog/data- driven-decision-making-ddm/#:~:text=Data%2Ddriven%20decision%2Dmaking%20is %20defined%20as%20using%20facts%2C,benefit%20a%20business%20or %20organization.

HW1

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