Even an emerging field with seemingly no drawbacks has some clear blind spots. Business analytics began as a field which revolutionized the way businesses approach the process of optimizing the way they operated.
Now, it has become a booming field that has seamlessly adapted to new fields like big data and brought companies closer to new emerging technologies like machine learning and AI. Business analytics has also made data-based decision making the gold standard of a modern business. Considering the way things were done in businesses, a more data-based approach is a welcome change.
In this article, we discuss some of the drawbacks of business analytics.
Overall Cost
The cost of acquiring the necessary data, hiring the right analysts to study the data, and getting the right business analytic tools to ensure the success of the effort is very high. Even for a big business, making such a huge investment in business analytics requires some promise of a ROI so that the investment can be made.
Dependence on Historical Data
Historical data is often not a great indicator of how a business is performing at present and how it may perform in the future. Business analysts however depend a lot on historical data to identify underlying patterns and trends. This causes there to be a rift between the predicted analysis and actual outcomes. This rift brings business analytics in general into disrepute. Thus, the dependence of business analytics on historical data is a major disadvantage for the field.
In Conclusion
Business analytics, for all its glory, has some blind spots. Some of these blind spots are down to the nature of the field while others are down to how professionals in the field interpret the concepts and ethos of business analytics. In any case, understanding the drawbacks of business analytics is important to know exactly where the field fails.
In this article, we covered the drawbacks of business analytics as a field, some of them foundational while others made prominent by human error. If you want to learn more about data science, consider taking a trial class at the top business analytics course in Delhi offered at Kapil Heera Academy.
About the Author
Anmol Gupta is a notable blogger and writer. He has a penchant for developing new business models and suggestions for budding businesses. His interests range from marketing to technology and business development