What is Analytics and its types?

What is Analytics?

Analytics is the systematic examination of data to reveal important insights and trends that might influence decision-making and drive shifts. It entails acquiring, organizing, analysing, and visualising data to better understand many elements of a business, organisation, or system.

In other words, Analytics is the discovery, interpretation, and communication of meaningful patterns in data. It focuses on transforming raw data into insight to make better decisions. Analytics integrates statistics, computer programming, and operation research to measure and acquire insight into the importance of data. It is especially beneficial in fields that collect a large amount of data or information.

What are the types of Analytics?

There are four types of analytics, each with a particular aim and way of operation. Here's a quick rundown of forms of analytics:

Descriptive Analytics 

Descriptive analytics is concerned with summarising historical data to obtain insights from past occurrences and figure out what occurred. Basic statistical metrics, data visualisation tools, and reporting are used to create a clear picture of trends, patterns, and key performance indicators (KPIs). Descriptive analytics may assist in answering queries such as "What happened?" and "How did it happen?" or is happening by summarising previous or present data using charts, tables, or dashboards. It aids in comprehending the current status of a situation or problem.

Diagnostic Analytics

Diagnostic analytics seeks to determine the causes and explanations for past occurrences by examining data linkages. It entails delving deeper into historical data and employing various statistical approaches to identify patterns and relationships. Diagnostic analytics investigates "What factors contributed to the outcome?" and  "Why did it happen?"  or is happening in the past or present utilising techniques such as drill-down, data mining, or correlation analysis. It aids in determining the underlying causes or elements that impact a situation or problem.

Predictive Analytics

Predictive analytics makes accurate projections or forecasts about future events or outcomes using historical data by statistical models. It entails identifying patterns and trends that may be utilised to produce trustworthy forecasts using algorithms, machine learning techniques, and statistical modelling. Predictive analytics assists in answering questions such as "What is likely to happen?" and "What could happen in the future?". It aids in anticipating and planning for future scenarios or events.

Prescriptive Analytics

Rather than forecasting future outcomes, prescriptive analytics focuses on proposing actions or techniques to improve decision-making. It integrates historical data, prediction models, optimisation algorithms, decision analysis, game theory and business rules to deliver actionable insights and aid in the decision-making process. Prescriptive analytics assists in answering issues such as "What should we do?" and "How can we achieve the best outcome?". It aids in decision-making and achieving desired goals or objectives.

Summary

Analytics helps organizations gain a better understanding of their data, make informed decisions, and achieve desired outcomes. By leveraging statistical techniques, data visualization, and advanced algorithms, analytics enables businesses to uncover valuable insights, improve processes, and stay competitive in today's data-driven world.