Data Analytics for Everyone
Data-driven decision-making
“All models are wrong, but some are useful.” This mantra, introduced early in the course, reminded us that no predictive model perfectly represents reality. Yet, even imperfect models can provide actionable insights if applied thoughtfully.
Take customer retention as an example. A quick analysis might reveal that customers who receive more discounts are happier and stay longer. But is the discount driving loyalty? Or could it be that loyal customers naturally take advantage of discounts more often? Confusing correlation with causation could lead to wasted resources on unnecessary discounts, while the real key to retention might lie in better customer service or faster deliveries. By leveraging analytics, we learn to ask the right questions before investing in costly initiatives.
The business analytics course taught us to design experiments and use statistical models like logistic regression to uncover true causal relationships. A structured approach ensures we’re not just chasing misleading correlations but identifying actionable strategies.
AI – The great democratizer
One of the most exciting aspects of the course was seeing how AI is transforming business analytics. What once took weeks can now be completed in hours. For example, building a model to predict churn or optimize marketing spend – an effort that previously required specialized teams – is now accessible to a wider range of professionals. Generative AI tools simplify data preparation, automate model selection, and even visualize insights, breaking down technical barriers.
This democratization of analytics means businesses of all sizes can now harness the power of data. We explored how AI is making business analytics more efficient, accessible, and even transformative. Whether it’s gaining insights into competitors1 or optimizing operations, AI is reshaping how we work and compete in today’s fast-changing landscape.
Keep up, don’t catch up
AI is happening and it’s creating opportunities for those ready to act. What once required vast time and resources becomes accessible to a wider range of people and business. Early adopters will set the pace, while others scramble to catch up. We can harness the power of AI today, or risk falling behind tomorrow.
1 Use GenAI to Uncover New Insights into Your Competitors, Thomas H. Davenport, José Parra-Moyano, Karl Schmedders, and Stephan Schulte, November 17, 2023.
