Data AnalyticsMaking better business decisions using Data

Data Analytics

Data analytics is the science of analyzing raw data to make conclusions about that information, thus helping businesses to optimize their performance. A company can use data analytics to make better business decisions, analyze customer trends and satisfaction, thus leading to new and better products and services.

Data analytics is a broad field that encompasses many diverse types of data analysis. However, the four primary types are:

  1. Descriptive
  2. Diagnostic
  3. Predictive
  4. Prescriptive

Each type of data analytics has a distinct goal and unique place in the process of analyzing data.

Descriptive Analytics

  • Descriptive Analytics answers the question about what happened. Descriptive Analytics interprets the historical data to understand the changes that have occurred, obtaining a view of performance and trends that decision-makers can base their business strategy on. Businesses can also use this information to identify the areas of strength and weaknesses in their organization.

Diagnostic Analytics

  • Diagnostic Analytics involves Data Discovery, Drill-down, Data Mining, and Correlations.
  • Businesses can perform this analysis to get more value out of data for their organization by asking the right questions and getting answers
  • specific to their challenges.

Predictive Analytics

  • Predictive Analytics answers the questions about future prediction. These techniques and tools involved use historical data to identify trends and provide valuable insight into what may happen in the future. Its techniques include various statistical and machine learning techniques, such as neural networks, decision trees, and regression.
  • Businesses can apply predictive analytics to interpret data for their benefits.

Prescriptive Analytics

  • Prescriptive Analytics answers the question about what should be done. Insights from predictive analytics help make data-driven decisions. Businesses can use this to make informed decisions based on optimizing the result of future events. Prescriptive analytics techniques rely on machine learning strategies that can find patterns in large datasets. Analyzing past decisions and events helps estimate the likelihood of different outcomes.

These various types of data analytics help businesses to optimize their operations and organization. Businesses can make improved decisions and make their operations more efficient.

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