Digital Transformation
You’ve heard the term that data is the new “gold”. Data drives the world and data analytics can assist you in making critical decisions relating to your business. But, where do you get this data? All you’ve got are your business transactions in your accounting software or even Microsoft Excel. Not sure where to start?
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Data analytics is the science of analysing raw data to make conclusions about the information. Data analysis which founds the foundation of data analytics is the process of inspecting, cleansing, transforming, and modeling data to discover useful information, informing conclusions, and supporting decision-making
Data analytics is broken down into four basic types:
Descriptive analytics
Descriptive analytics Describes what has happened over a given period. Have the number of calls gone up? Are sales stronger this month than last?
Diagnostic analytics
Diagnostic analytics focuses more on why something happened. This involves more diverse data inputs and a bit of hypothesizing. Did the weather impact sales? Did that latest marketing campaign impact sales?
Predictive analytics
Predictive analytics moves to what is likely going to happen in the near term. What happened to sales the last time we had inclement weather?
Prescriptive analytics
Prescriptive analytics suggests a course of action. If the likelihood of bad weather is measured as an average of these five weather models is above say 60%, we should take steps to ensure continued output.
Data analytics can assist in determining pricing strategies, financial condition, sensitivities, tax impact assessments and business performance amongst other areas. It goes hand-in-hand with financial modeling and can be set-up to generate information to guide day-to-day business decision making and even long-term strategic planning.
Data analytics is a useful tool in business monitoring as it enables real-time decision making designed to ensure business success.