Big Data Analytics For Financial Decisions

Analysis of data for decision making in organizations

Business data analytics is the buzz word in corporate business for analyzing data and making decisions.

Over the last few years, business is flooded with a volume of data and it is called ‘big data’. This is commonly known as ‘internet of things’. The data analyst has been taken over by the business data analyst.

Data analyst provides raw data and its analysis and the business data analyst takes the decisions. Business data analytics is therefore a concoction of statistical techniques, quantitative analysis, modelling techniques and fact-based management to develop a strategy and optimize solutions in the business. Such analysis is most important for making financial decisions.

Every organization has different kinds of work assigned to people. Does a data-driven organization have to understand different situations such as what happened? Why did it happen? What is likely to happen and what should be done about it?

This can be explained through a story where you are in an elevator and a dangerous person gets in. Then the person waits for you to press the elevator button and after that, he presses the button of the floor right below you.

When you get to that floor the door will open and the dangerous person will go out. As the doors are about to close, he will turn around and in the small opening between the two doors, he will show you his fist. Then you will hear him say “I will box your ears”.

In this story, you do not know why the dangerous person wants to beat you but for a while, you are scared and do not know what to do.

The dangerous person will then go upstairs and wait till you come. When your door opens he will be there to beat you up. This is the scare in business as to what is likely to happen. If you make incorrect and inept decisions in financial matters the business can fail and the organization will become bankrupt.

This is the decision that business data analytics has to take when he is experiencing a lot of problems and how to optimize and succeed by taking the right decision in financial matters to be successful.

Should he be beaten by the dangerous man or should he take some other route through which he can succeed? At this point, business data analytics helps and you take small steps to save your skin by changing your route. This is most important in saving your business by appropriately changing your financials to meet your target and follow the right path.

The major takeaways are the following:

#1. Predictive analytics helps in developing some patterns to identify and assess the financial risks as well as the opportunities in a particular condition.

It captures the different factors, associated with the risk in a particular state and helps to predict through predictive analytics as to what is likely to happen and then to take prescriptive action and make the appropriate financial decisions.

#2. The business analytics which helps in generating meaningful information in anticipating why a particular condition is happening and how to make the most in particular situation goes hand in hand with predictive analytics and is applied through prescriptive analytics.

#3. Business organizations should be encouraged to leverage big data analytics in every field to name a few financial institutions and banking sector, healthcare industry, social media, service industries, exports and food chains.

#4. Financial data can be predicted and this will be useful to plan the finances of all corporate organizations because ‘money makes the mare go’. A company cannot run unless the finances are run properly.

#5. Stock markets behaviour can be analyzed with careful data analytics. So big data is one of the very useful things that has been possible through technology.

Final thoughts: Big data analytics are a great help in predicting financial data and making analysis. It is also helpful in prescriptive analysis. If you happen to make a mistake then a new path can be drawn out rather than losing money and becoming bankrupt.It is useful in all corporate organizations for planning and organizing the finances of the companies. It is also a great option for financial institutions, banks and stock markets.

Technology has brought about great change. Big data analysis through the internet of things is influencing organizations and changing the shape of how the organizations work. In a big way it affects and promotes financial decison making.