Business analytics has the capability to enable business owners, strategic marketing professionals and even business managers to analyze and simply understand business opportunities. These assets play a very instrumental role in the production process of the organization. Capital budgeting is planning where the money of the organization will be invested, and what assets will the organization acquire in a particular year. Business analytics is a wide area that covers the analysis of data using operations research and statistical analysis.
For example: By analyzing the historic data (say for 6 months) and building a data model on the basis of various parameters of a voice usage customer, the potential customers for data usage and other value added services provided by the telco can be identified, who can be targeted by product bundled promotions.
There is business analytical software available that allows a business to gather essential data, analyze the information in order to best use the results to streamline operations and gain a new insight into the business operation and market. That is why studying gross sales and net sales of your organization is of importance before coming to a conclusion of profitability of your business.
Initiating from the data gathering stage, the whole process requires performance indicators or performance evaluation metrics that could measure the steps time to time that will stop the issue at an early stage. Young businesses especially spend most of their early stage time probing the market and looking for the right product offering to execute upon.
Capex, on the other hand, includes all the money that is spent on buying assets that will be for the future of the company. Companies are finally realizing the value of their accumulated customer data and are hiring data analytics professionals to tease out the trends in their data.