Research findings by Andrew McAfee and Erik Brynjolfsson of MIT show that companies that inject big data and analytics into their operations show productivity and profitability that are 5% to 6% higher than those of their peers.
That’s the secret of Netflix’s success. Using business analytics has saved them a whopping $1 billion a year!
In this article, we’ll venture into the world of business analytics and try to uncover the secret recipe for building a successful business.
What does an MBA in business analytics do?
There is an enormous amount of data generated through various sources including websites, social media platforms, transactions, mobile apps to name a few.
This data can be tapped into to extract valuable information that can used to make recommendations to help businesses increase their efficiency, improve business operations, understand customer behaviour, cut costs or increase business revenue.
Business analytics is the process of gathering and analysing this data to provide insights that can assist in making data-based, informed business decisions or devise business strategies.
With an MBA in business analytics, you can find job positions that require quantitative and analytical skills as well as business acumen. Such job opportunities exist across industries and various functions including marketing, sales, finance, operations and human resources (HR).
MBA graduates, with their knowledge across functions and industries, strategic decision-making ability, leadership and people skills are in a good position to make key data-driven decisions that can help organisations solve their business problems or meet their business objectives.
The breadth and depth coverage of MBA programs equips MBA graduates with skills and expertise to see the big picture, thus putting them in a better position to handle senior roles in this field. It’s not just the technical aspect (getting insights from data) that needs to be handled rather there’s a much bigger responsibility of being able to gauge and foresee how the actions or decisions taken may affect the business or those concerned.
Dokyun Lee, assistant professor of business analytics at CMU Tepper explains the value MBA grads bring to the table. He feels that software programs tend to overlook the nuances and amplify trends from small datasets. This can paint an incorrect picture when it comes to representing gender or racial attributes.
In contrast, a well-trained MBA who has a better understanding of multiple disciplines including consumer psychology, ethics and organizational behavior, would be better positioned to pre-empt or plan for the unintended and potentially damaging consequences of powerful tech (such as AI) that drives business decisions.
What is business analytics? What are the steps involved in business analytics process?
Here’s an outline on how the business analytics process works:
1. Identifying business needs
Firstly, you need to be able to define the objective or end goal – is the business trying to improve customer reach, is it trying to optimise supply chain management; what is the problem area or objective that the company is trying to address? Is there enough information/data available?
2. Exploring the data
The data that is gathered needs to be cleansed so as to eliminate replication, errors or other inconsistencies.
3. Analysing the data
This is done using various statistical methods. The data is sliced and diced in order to understand and compare it to obtain useful actionable insights.
4.Prediction
Various prediction techniques like neural networks, decision trees will be used. This will help in establishing trends, patterns and relationship between variables.
5. Optimisation
To validate your analysis, run the ‘what-if’ scenarios to figure out the best possible solution in line with the business goals.
6. Decision making and measuring outcome
Based on the insights obtained, the required action would be taken to meet the company’s objective and its outcome would be evaluated after a specified period of time.
The results of the action (how effective was it?) as well as new insights gained thereof are then recorded. The return on investment (ROI) is also evaluated.
According to Zippia.com, private sector retail companies can increase their operating margins by 60% by making full use of big data. This would require analysing their gathered data in an efficient manner and making use of the insights gained to put systems in place and thus reduce costs by at least 60%.
Application of business analytics example
To understand this concept, let’s look at an example of how to leverage data insights to improve customer targeting.
By dividing the customer base into groups based on gender, age, demographics, buying behaviour, interests, the marketing campaign can be customised based on its relevance to the customers and in line with their preferences.
This helps increase its effectiveness, increases the company’s profitability and reduces marketing expenses by reaching out only to targeted customers, improves customer experience, increases the chances of cross-selling and up-selling, also improves customer retention.
Data analytics was the key factor behind Netflix’s success in becoming the top digital streaming platform. The algorithms and critical insights gained helped them understand user preferences so that they could tailor the content based on user expectations, thus improving customer experience and retention.
Quoting Netflix CEO Reed Hastings – “If the Starbucks secret is a smile when you get your latte… ours is that the Web site adapts to the individual’s taste.”
MBA in Business Analytics top universities & fees
These are the best universities for MBA in business analytics in the USA
| Business school | Tuition and fees (for 2 years) |
| Carnegie Mellon – Tepper | $147,456 |
| Georgia Tech Scheller | $62,016 (Georgia resident) $84,504 (Non-resident) |
| Wharton | $167,748 |
| NYU Stern | $168,000 |
| UC Berkeley Haas | $134,848 (CA resident) $152,866 (non-resident) |
| McCombs | $105,100 (Texas resident) $117,440 (non-resident) |
| Chicago Booth | $155,682 |
| Duke Fuqua | $150,000 |
| Harvard | $146,880 |
| Columbia | $169,150 |
Source: 2023 Best Business Analytics MBA Programs by U.S. News
MBA in business analytics UK
If you intend to study MBA in business analytics in the UK, there are MBA programs offered by London Business School (LBS), Imperial College Business School, Bayes Business School that include courses in business analytics. LBS has a duration of 15-21 months while the others have a one-year duration.
If you’re looking for more options, you also have business schools with one year Master’s / MSc in Business Analytics offered by Warwick Business School, Durham University Business School, Alliance Manchester Business School.
MBA in business analytics syllabus
If you’re interested in a career in business analytics, choose an MBA program which includes business analytics in its curriculum. The format may vary with schools offering business analytics track, major or concentration/specialisation.
Here are some of the sample courses that business schools may offer:
- Applied business analytics and decisions
- Data science
- Big data management: tools and techniques
- Artificial intelligence for business
- Project management
- Marketing analytics
- Customer analytics
- Operations planning and execution
MBA in business analytics jobs
In 2017, the annual revenue generated by global big data market was valued at $35 billion which jumped to around $56 billion in 2020 and is forecasted to generate $103 billion in revenue by 2027.
Here’s the estimated projection of how various jobs in business analytics are expected to grow over the next decade:
According to the U.S. Bureau of Labor Statistics, employment of operations research analysts is projected to grow 23% from 2021 to 2031, that of data scientists, the growth is projected at 36% during the same period while that of market research analysts, it is projected at 19%.
The expected growth rate is much faster than the average for all occupations.
Here are some of the business analytics job positions:
- Market research analyst
- Big data analyst
- Marketing analyst
- Data scientist
- Operations analyst
- Business intelligence manager
- Business systems analyst
- Chief data officer
- Supply chain analyst
- Financial analyst
- Vice president of data analytics
- Business analytics manager
- Business analytics director
- Revenue management analyst
Also read: MS in Business Analytics (MSBA) vs MBA: Pros and Cons
Rebecca: Managerial analytics is attractive because of the pivotal role these skills play in today’s data-driven business environment. Students are drawn to the potential career advancement opportunities, as proficiency in data analytics is often linked to more favorable job prospects and higher earning potential.
Courses within the specialization equip students with analytical competencies crucial for effective decision-making and enable them to address complex business challenges using data. In an era where businesses are heavily reliant on technology and data, knowledge in analytics ensures students stay relevant and adaptable. Moreover, these courses are integral for strategic decision-making, shifting the focus from intuition-based to data-driven approaches, a fundamental aspect of contemporary management.
MCB: What roles / industries have students who’ve taken this specialization got into?
Rebecca: Managerial analytics have become a business essential and have relevance to all business functions, from those that have been historically data-driven – operations and finance – through to marketing and HR. There is no single track or path that our students embrace.
Furthermore, in an international educational setting, students gain insights into the global application of analytics, resonating with the diverse and global nature of MBA programs. This holistic approach makes managerial analytics courses a key attraction for MBA students.
MCB: Are students expected to have any prior technical knowledge (such as SQL, coding skills in languages like R)?
Rebecca: The key technical skills required for the Managerial Analytics specialization are grounded in common tools. They include proficiency in Microsoft Excel and a basic understanding of data analytics principles, the latter developed during the core of the MBA program. Mastering R is not a primary objective and basic familiarity with the software is sufficient.
MBA in business analytics salary
| Job designation | Median salary range with a Master’s Degree or MBA |
|---|---|
| Business Intelligence Manager | $134,749 – $144,195 |
| Business Analytics Manager | $129,190 – $137,515 |
| VP of Data Analytics | $215,618 – $236,347 |
| Business Analytics Services Director | $176,869 – $185,385 |
| Business Analytics Director | $200,328 – $219,141 |
Source: salary.com
Companies employing MBA in business analytics
Some of the top employing companies at various business schools include Amazon, Apple, Microsoft, Facebook, Google, McKinsey & Co, PayPal, Uber, A.T. Kearney, Walmart, Gap, Inc, Deloitte, General Motors Co., EY, Flipkart, Black Rock, Johnson & Johnson, Bank of America, IBM, Citi, Pepsi.
Is an MBA in business analytics worth it?
Yes, considering that the business analytics field shows promising future prospects and is growing at a fast pace with more and more organisation making use of it. With an MBA from a reputed business school, you’ll have an edge over others and be able to aim for senior positions in this field.
While shortlisting the MBA programs you’re planning to apply to, make it a point to check their previous employment statistics to know how many MBA grads found a job in business analytics field and figure out the average salaries.
For example, at MIT Sloan, the mean base salary in business analytics for the MBA class of 2022 was $154,300, which was at par with salaries in other sectors.
Heading to a good business school can help you build a strong network and industry connections. The various events as well as the mentoring and support from alumni and the careers team can be a valuable resource in helping you get closer to your dream job.
Shoot us an email if you’d like some professional help with your applications to the top MBA in business analytics programs:
info [at] mbacrystalball [dot] com
Related posts:
– Masters in management analytics in Canada (Rotman, McGill) and USA (Duke) with scholarship
– Jobs after MS in Business Analytics: Salary statistics and career opportunities
– Master’s in Analytics: Best colleges and top programs
– Masters degrees in Big Data Analytics: Hot new trend in Business Schools
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