Data creation and consumption continues massive growth in the business world, and companies are continuing to pour billions of dollars into business analytics workers, hardware, software and services.
At the same time, the global business market is getting more competitive by the day, and the amount of data that businesses have to sort through to make critical business decisions to stay on top is also growing. Therefore the field of business analytics is becoming very important for businesses to keep their edge and expand their market share.
Business analytics is used today to gather new insights that can be used to make good business decisions, and to fully optimize complex business processes.
Business analytics involves two basic methods: business intelligence and statistical analysis. Business intelligence involves the review of historical data to get a good idea of how a department, team or company performed over a certain time period. Statistical analysis applies algorithms to historical data to make predictions about how a product or service may perform in the future.
Business Analytics Degree Opportunity
Business technology is becoming more and more advanced. This is causing growth trend for business analytics in making business decisions to explode. How much is business analytics use growing in global companies? Consider:
- The worldwide business analytics software market is poised to grow by 9.7% through 2017, according to International Data Corporation.
- In 2012, the global business analytics software market grew 8.7% year over year; revenues were $35 billion.
- Forbes magazine reports that by the end of 2017, revenue growth from products based upon information will double the remaining product and service portfolio for 33% of Fortune 500 companies. Data monetization will continue to be a major revenue source, and the world will create 180 trillion gigabytes of data by 2025.
- McKinsey Global Institute reported that by next year, the US alone could have a shortage of 190,000 people with deep business analytic skills. That organization also predicted a 1.5 million shortfall of managers and analysts with the skills to mine big data to make effective decisions.
- International Data Corporation also reported in 2015 that worldwide revenues for business analytics and big data will increase from $130 billion in 2016 to more than $203 billion in 2020.
Experts are predicting that business analytics professionals with cutting edge big data skills will be in big demand for many years to come.
Business Analytics Career Paths
There are a high number of excellent career options in the business analytics field today. The Bureau of Labor Statistics or BLS reports that there will be at least 8% growth in all business and financial jobs in the US by 2024. However, there is little doubt that business and technical professionals with business analytic and big data mining skills will be in greater demand in the coming years.
Some of the common career paths in America today, where business analytics skills are extremely useful, include these:
- Operations research analysts: These business analyst professionals must be highly skilled in mathematical, analytical and business analytical methods to assist companies in solving their problems and increasing their market share. They play vital roles in helping companies deciding how to better allocate their resources and to manage their supply chain better. This field will grow by an explosive 30% by 2024, and those with strong business analytical skills will be in great demand.
- Market research analysts: These marketing and business experts must analyze market conditions to determine what the potential sales could be of a new product or service. They are used to help corporations to understand the types of products and features that people want. Marketing research analysts use business analytics and data mining to understand who will buy new products and at what price. The job outlook in this field is excellent with 19% growth predicted in the next few years. The huge increase in data availability and market research will really drive demand in this role.
- Management analysts: These business analysts may be called management consultants in some roles. They study and propose efficient ways for organizations to boost their profits and to streamline their operations. Collecting data about past sales, available inventory and current corporate structure are important parts of providing recommendations to the company. Job growth will grow at a healthy 14% clip by 2024.
- Financial analysts: These finance and business analysts offer detailed guidance to both companies and people who are making critical investment decisions. They focus their work on providing analysis of potential investment opportunities. They often use business analytics and data analysis skills as they work in pension funds, banks, securities firms, insurance companies and other financial related companies. This field will see a strong 12% increase in job demand by 2024.
Business Analytics Salaries
Many business professionals opt to focus their careers on business analytics because the high job demand in so many different jobs usually means a good salary. Below are the median salaries according to BLS for some of the common business analytics-related careers:
- Operations research analysts earn a median salary of $78,630 per year, and the top 10% earn over $132,000 per year.
- Management analysts earn a median salary of $81,320 per year, and the top 10% earn more than $150,000 per year.
- Financial analysts earn a median salary of $80,300 with the top 10% earnings more than $160,000 per year.
- Market research analysts earn a median salary of $62,150 per year, and the top 10% earn $120,460 per year.
The part of the country in which you live also will affect your earning potential in business analytics. Business analytic professionals in these cities have the greatest salary potential:
- Raleigh, North Carolina
- Boston, Massachusetts
- Portland, Oregon
- San Diego, California
- Dallas, Texas
- Denver, Colorado
- Hartford, Connecticut
- Atlanta, Georgia
- Louis, Missouri
Business Analytics Employers
The business analytics and big data field is growing very rapidly, as technology and competition increases across the world. According to Forbes, some of the best big data and business analytics companies to work for in 2016 were:
- Kyvos Insights