Data analytics can be described as the science drawing insights from raw information sources. Today, many of the data analytic processes have been automated to mechanical processes, algorithms that process raw data for human consumption. The results obtained would be lost in the immense mass of information.
Types of Data Analytics in Business
When utilized as it should, storage repositories can be a perfect tool in reaching the set goals in business. So what are storage repositories? This is basically a system of storing data in its natural format. It is normally a single store in the whole enterprise. In order to create a successful functioning data lake, you must be able to come up with effective strategies that will be used in the acquisition of data. Basically, there are four types of data analytics in businesses today. All these four types are tailored to help a business make better decisions and improve on all fronts. They offer facts-based insights and bring more value to the business.
Descriptive, Diagnostic, Predictive, and Prescriptive Analytics
This is a type of analytics that tends to answer the question ‘what happened’. Descriptive analytics tussles raw data coming from different multiple sources to provide valuable insights. In diagnostic analytic, historical data is analyzed against other types of data to try to answer the question of ‘why something happened’. It helps to identify patterns and dependencies. It offers an in-depth in a particular problem facing the business. This type of analytics tells us what is ‘likely to happen’ in the future. It manipulates results from descriptive and diagnostic analytics to come up with results. This includes include detecting tendencies, cluster, and future predictions. The last type of analytic is prescriptive analytics. The sole purpose of this analytics is to provide the course of action to be taken. ‘What action to take’. This is to enable the business to take full advantage of an arising promising new trend or in the elimination of problems that will arise in the future.
Need for Data Analytics in Business.
You can achieve significant values and results when you apply analytics in your business. Monitoring the data streaming into your business could be crucial. In today’s world, businesses can make immediate decisions and draw important insights for the businesses. Data analytics enable businesses to identify new arising opportunities. This in return results in making smarter business moves. This offers happier staff, happier customers and of course increase in profits.
Analytics in business achieve significant cost reduction effects when it is relating to a large amount of data storage. It also helps the business owner come up with a more efficient way of conducting business. This results in more profits from the business venture. When it comes to making important decisions concerning the business, it creates a way of doing it in a faster and better way. The ability to analyze new data sources and immediately analyzing the data results in a better decision for the business. This is because decisions will be made on the basis of what has been learned.