Data analytics as a whole includes the data collection, data cleansing, data analysis, interpretation, and visualization of results.
Business leaders should always look into innovative ways to grow their companies. Getting a step ahead of the competition does not necessarily mean having one of the biggest corporations. This actually means incorporating the right technology that will greatly impact your business’s overall performance.
With tons of available technologies that business owners can utilize nowadays, remember that not all are applicable to your type of business. However, every company should consider making use of data analytics. This practice is another breakthrough in technology that is now slowly becoming known in different types of industry sectors.
Why should you consider data analytics?
Data analytics allows you to have an accurate and definite report in different aspects of your business. It also enables you to streamline your daily operations, as well as boost your business processes. This new emerging technological trend in the business industry is now being used for nearly anything like:
- Identifying new business opportunities.
- Predicting supreme court cases.
- Improving marketing strategies and campaigns.
- Preventing shipping breakdowns for shipping companies.
- Optimizing and enhancing customer service experience.
- Reducing risks in data security and fraud.
These are just a few of the uses of data analytics in different industries. Data analytics is now also being utilized in other sectors like the healthcare, food and beverage, aviation industry and more.
Top data analytics methods used in businesses
The data analytics process makes use of various analytical methods to interpret and analyze different sets of raw data. Below are the leading data analytics methods used in analysis:
Text analysis
Text analysis is also known as data mining. This method is commonly used to determine different sets of patterns in large volumes of data sets. Text analysis involves extracting meaning out of raw data and transforming it into valuable information that can help businesses make informed decisions.
Statistical analysis
Statistical analysis includes the collection, interpretation, and presentation of volumes of data sets to discover trends and patterns. This method answers the question, “What happened?”. Statistical analysis is also divided into two categories: Descriptive and Inferential analysis.
Diagnostic analysis
This method is usually in connection with the results found in Statistical analysis. This analysis answers the question, “Why did it happen?” by determining behavioral patterns found in raw data sets.
Predictive analysis
Predictive analysis, from the word itself, predicts future outcomes based on present or past data sets. This method answers the question, “What is most likely to happen in the future?”. Predictive analysis is often used as a decision making tool for different types of industries.
Prescriptive analysis
Prescriptive analysis is usually used with Descriptive and Predictive analysis. This method combines the results found in both aforementioned methods to determine what actions to make in a current situation or problem.
Data analytics as a whole includes the data collection, data cleansing, data analysis, interpretation, and visualization of results.
