THE NATURE OF ANALYTICS
In today’s time, the needs of all types of endeavors should be based on certain emperical data – be it corporate, agriculture, small and medium enterprises, entertainment, sports, academe, or online engagement. Understanding of patterns is very helpful in keeping track with competition, trends and demands. This is why knowledge in the use of analytics is very advantageous. One may ask about the nature of analytics. It is about gaining insights about the patterns in data to answer certain question or issues. In many businesses, their decision is data-driven, and this ensures the materiality of the outputs. To put into proper perspective, business that uses analytics more efficient and profitable that the one that do not use it.
In analytics, meanings of trends or patterns are dicovered, interpreted and commuincated. This is very true in fields where recorded information is so rich, that is, every single day new data sprout. This is why one needs to know how to take control to quickly answer business questions to promptly find the right decision.
THE TYPES OF ANALYTICS
DESCRIPTIVE ANALYTICS: This type of analytics is used to answer questions about what has happened in a business. Its primodial role is looking into the present situation, specifically the cause and effect of certain trends or patterns. With this, one can gain understanding with what to do with the present based on the past data or experiences. In short, it uses data aggregation and data mining to provide insight into the past and answer: “What has happened?” Use descriptive analytics when you want to understand the overall performance of your business, and when you want to summarize the and describe its different facets.
PREDICTIVE ANALYTICS: In this type of analytics, data are taken and peculiar aspects are weaved to arrive at a common conclusion or inference so as to predict outcomes. Its goal is to provide an educated guess on what will most likely to happen in the future. It is very useful in mitigating risks and eliminating illogical choices. It provides businesses with actionable insights on data. Its foundation is based on probability. It can be used in many aspects of an organization, from forecasting customer behavior and purchasing patterns to identifying trends in sales activities.
PRESCRIPTIVE ANALYTICS: This type of analytics elevates the practical use of analytics because it goes one step higher as it finds the best course of action to take in any given situation. It enhances learning outcomes and decision-making by giving multiple outcomes based on multiple factors. This guides business owners towards certain solutions by giving predictions. It quantifies possible effects of future decisions so as to advise on possible outcomes before they are actually made and/or implemented. So to speak, prescriptive analytics predicts not only what will happen, but also why it will happen by giving recommendations regarding actions that will take advantage of the predictions.