Basically, analytics is the method of gathering insight by breaking down past performance and data so that an informative next step can be planned and taken. Think of analytics like watching your life play out in a crystal ball, and then seeing what you should do in the future. Analytics employs statistical and data models to investigate performance. Business intelligence, a similar analysis approach, uses metrics as well.
Analytics is the catalyst in the decision-making process. It yields tangible results that can be reviewed. By quantifying what has happened in the past, analytics can uncover problems and provide ample solutions to those problems. This makes it an essential tool for management.Most importantly, analytics plays a role in the budget of a business. If data shows performance problems in one division, a company may turn all of its concentration to that specific area. Or growing performance may be discovered in an operation, prompting an increase in funding for its continued advancement. In other words, analytics is more or less a business compass as well as a problem solver.