Making Sense of Data

What is Analytics?

• Analytics is based on the direct application of computer programming, statistics, and research. It is also an essential element that transforms data into decision making. Patterns in data are discovered, interpreted, and communicated using analytic tools and these patterns are then translated into essential insights that lead to conscious decision making for businesses and industries.

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Types of Analytics

 

There are three levels of analytics and they are used to learn about the past, future, and different future outcomes.

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• Descriptive Analytics: provides insights into the past, basing itself on the question "what has happened?". This question is answered using data aggregation and data mining. This type of analytics is essential because it summarizes raw data and transforms it into information that is understandable and valuable to businesses, allowing the companies to learn from past behaviors.

• Predictive Analytics: This type of analytics answers the question "what could happen?" by using statistical models and forecasts techniques in order to better understand the future. Predictive analytics provides businesses with insights based on data and with estimates about the probability of future outcomes. 

• Prescriptive Analytics: it gives advice on possible outcomes by answering the question "what should we do?". This type of analytics uses optimization and simulation algorithms in order to guide future decisions and foresee its effects on businesses.

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