DATA ANALYTICS
Data analytics is a discipline focused on extracting insights from data. It comprises the processes, tools and techniques of data analysis and management, including the collection, organization, and storage of data. The chief aim of data analytics is to apply statistical analysis and technologies on data to find trends and solve problems. Data analytics has become increasingly important in the enterprise as a means for analyzing and shaping business processes and improving decision-making and business results.
Data analytics draws from a range of disciplines including computer programming, mathematics, and statistics to perform analysis on data in an effort to describe, predict, and improve performance. To ensure robust analysis, data analytics teams leverage a range of data management techniques, including data mining, data cleansing, data transformation, data modeling, and more.
Types of Data Analytics
Data analytics is broken down into four basic types.
- Descriptive analytics: This describes what has happened over a given period of time. Have the number of views gone up? Are sales stronger this month than last?
- Diagnostic analytics: This focuses more on why something happened. This involves more diverse data inputs and a bit of hypothesizing. Did the weather affect beer sales? Did that latest marketing campaign impact sales?
- Predictive analytics: This moves to what is likely going to happen in the near term. What happened to sales the last time we had a hot summer? How many weather models predict a hot summer this year?
- Prescriptive analytics: This suggests a course of action. If the likelihood of a hot summer is measured as an average of these five weather models is above 58%, we should add an evening shift to the brewery and rent an additional tank to increase output.
Why Is Data Analytics Important?
Data analytics is important because it helps businesses optimize their performances. Implementing it into the business model means companies can help reduce costs by identifying more efficient ways of doing business. A company can also use data analytics to make better business decisions and help analyze customer trends and satisfaction, which can lead to new and better products and services.