In today’s world, the abundance of available data and the strength of computing power are growing exponentially. As both internal and external data become more available, companies increasingly use data to drive business decisions — a process known as quantitative business analytics.
Moving forward, companies will prioritize hiring data-savvy business professionals who can leverage the latest technologies to draw insights from large sets of raw data. If you hope to enter this field, earning a Master of Business Administration (MBA) degree, like that offered online by Pittsburg State University, can give you a professional advantage. This advanced degree communicates to prospective employers that you understand key techniques (like regression analysis) and how data analytics impacts the bigger picture.
What Is Business Analytics?
Quantitative analytics involves using mathematical and statistical techniques to analyze data sets and identify trends. In the past, business leaders would rely on their instincts or the advice of peers to make decisions, but many now rely more on data.
By leveraging internal and external data, business leaders can drive sales growth, improve operational efficiency and anticipate future market trends. The data that quantitative analysts examine depends on what they’re trying to determine and can be almost anything.
It’s important to note that quantitative analysts are typically associated with financial traders. These types of quantitative analysts, often called “quants,” are responsible for creating trading algorithms that can successfully identify and locate profitable stock trades. By creating successful trading algorithms, quants can earn a tremendous amount of money swiftly. However, quantitative analysis also exists outside of the world of trading.
Examples of Analytics in Business
Quantitative business analytics can function in most business verticals that utilize data. Regardless of the vertical, quantitative analysis relies on the same formula: gather as much data as possible, search for trends and report these trends to the leadership team to improve decision-making.
One area where businesses commonly use quantitative business analytics is in advertising and marketing. For example, marketers can use business analytics to examine the success of previous marketing campaigns and look for correlations between which campaigns do well and which ones don’t. This information allows the marketing team to improve their strategies and campaigns.
Business analytics is also commonly used at different points along the supply chain. For example, when it comes to inventory management, business analysts can examine sales data and inventory levels from previous years to identify busy and slow periods. This knowledge allows the companies to better forecast demand and ensure they always have the optimal inventory.
Finally, similar practices occur in project management. Business professionals can analyze past project data to help forecast future needs. This practice ensures that projects receive appropriate funding to ensure the company makes the best use of available resources.
Implementing Quantitative Business Analytics
Quantitative business analytics requires a keen mind that can digest and interpret what a large data set is telling them. According to the Corporate Finance Institute (CFI), analysts use three main techniques when measuring data:
- Regression analysis: This quantitative method uses statistical equations to predict or estimate the impact of one variable on another. For example, a company could use regression analysis to examine how a change in a product’s price impacts its sales.
- Linear programming: This quantitative method helps companies determine how to achieve the most optimal situation when faced with unique scenarios (or when trying to predict the future).
- Data mining: A fairly broad term, data mining involves evaluating a large set of data to find patterns or correlations.
However, it’s not enough to simply understand how quantitative business analytics works. Prospective employers will also want to know that you understand how to use analysis to improve the company’s performance in different scenarios. For this reason, it’s recommended that aspiring business professionals obtain an MBA to make themselves more attractive candidates.
Deepening Your Understanding of Business Analytics
Earning an MBA is perhaps the best way to communicate to employers that you have a core understanding of quantitative business analytics because they offer courses specific to this line of study. For example, Pittsburg State’s online MBA program offers two relevant courses: Quantitative Business Analysis and Financial Strategy.
Quantitative Business Analysis teaches students core techniques necessary for a career in business analytics, like regression analysis, linear programming and decision-making in periods of uncertainty. Meanwhile, Financial Strategy discusses more managerial-level topics such as financial planning, capital costs and budgeting. Upon graduation, aspiring quantitative analysts with an MBA will find themselves in a much better position than those with just an undergraduate degree.
Learn more about Pittsburg State University’s online Master of Business Administration program.