Managers have to ensure that their business analysis points them in the right direction.
They have to know what they are looking for, draw the right the conclusions from what they find and take the appropriate action.
The ability to use analysis to spot errors and correct them is invaluable. For example, there was a company that had invested in a new product that ended up making heavy losses because a typical error had been made: historical data had been extrapolated into the future. They had misread their sales and demand.
The company then embarked on more relevant analysis, scaled down production and attacked the market from a different segment. The product then went on to dominate its market sector and became a highly profitable market leader.
You can find out more about business analysis in the articles below.