Data is the future and the future is data. We are living through a digital revolution and traditional business is being disrupted by the use of data.

It is difficult to overstate the impact that “big data” has already had on the world of business. Although the internet began to transform business in the 1990s, one of the growing factors in this Information Age is the role of data. Every modern corporation is analyzing their own data to improve business decision-making.

Data analytics is the analysis of data for the purpose of answering questions and revealing questions that are not yet being asked. It is “number crunching” that goes well beyond the aggregated information in economic data releases and quarterly corporate financial statements. Data analytics is evolving into transaction-level analysis that can examine millions (billions) of individual clicks or transactions to look for patterns and behaviors.

The goal of data analytics is to provide actionable insights. Recommendation systems are a great example of the insights provided by data analytics (e.g., Netflix, Amazon, Spotify). Sophisticated mathematical models known as algorithms are processing data to look for meaningful patterns that can be used to improve outcomes. The growth of data analytics is transforming the world of business.

Business analytics is the application of data analytics to business. It is about using data to help businesses make quicker and better decisions. Data analytics is the future of business, because it creates a foundation of information and insights for business managers. That’s why I think this is such an important topic for people to learn who are interested in business.

Business analytics is becoming a competitive advantage. Firms with better data and better analytics can outperform other firms by optimizing every business decision. Consider a marketing campaign – how can its effectiveness be measured? In the world of digital marketing, every view, click, and purchase can be tracked back to the source. This helps business managers know what’s working and what’s not.

Business analytics also helps prevent common challenges in human decision-making. Humans are known to have biases (personal/cultural/racial) that can lead to suboptimal outcomes. Data can help create a fact set for countering these biases. For instance, humans are susceptible to relying on personal anecdote (small data sample) rather than looking at all available information (representative data sample). The modern world of business is also incredibly complex. It can be difficult to consider all the factors in a situation that has so many moving parts. Analytics can help identify primary drivers of certain outcomes.

Think about the recent developments in semi-autonomous and autonomous vehicles. The technology behind self-driving cars is rapidly advancing, especially for unmanned vehicles used for delivery purposes. The basis of this technology is data analytics. The vehicle has sensors to collect data about its environment and it then makes decisions based on that data. What might this type of technology mean for the future of business decision-making? As business becomes more data driven, businesses will develop ways of monitoring their performance and adjusting their operations automatically.

Data analytics is transforming all of the major business disciplines: marketing, finance, management & entrepreneurship, accounting, and economics. It is also transforming the more focused disciplines like hospitality and real estate. There is no area of business that has not been impacted by the use of data.

These developments in data analytics raise interesting questions about the future. In particular, what is the role of the human vs. the machine? Students in todays market must consider the skills that will be needed as their career develops. One choice is to emphasize the uniquely human traits. The other choice is to emphasize the technical skills. The future of the work force will likely have unique paths for these different attributes.

Ultimately, data is powerful because it grounds us in facts. I like to think of data as the raw material of knowledge. It is the foundation of evidence-based thinking and even truth itself.