What Is Data Analysis?ĭata analysis is the process of studying what has happened in the past in a dataset. They are similar because they aid in the decision making process. Others would use them interchangeably.Īlthough, they are closely related, these terms have slightly different meanings. Some sources would define data analytics and data analysis as the same. You'll come across different definitions of data analytics and data analysis. What Is the Difference Between Data Analysis and Data Analytics?

Prescriptive analytics: In prescriptive analytics, the results from data analysis is used to make recommendations on what to do next.

Predictive analytics: The goal here is to foretell what is expected to happen in the future based on the outcomes of analyzed data over time.

This involves having a deeper look into why certain patterns were present in the data.

Diagnostic analytics: Diagnostic data analytics shows the ' why' in a data trend.Descriptive analytics: This type of analytics has to do with what happened with analyzed data over a specified period of time.There are mainly four different types of data analytics: You can see data analytics being used in healthcare, education, agriculture, and so on. This will enable them make important decisions for the future of the organization.Īlthough the points listed above seem to be from the business point of view, that's not the only industry where data analytics is important. Performance evaluation: Data analytics can help organizations evaluate how well or badly they've performed over a specified period. Improved business strategy: Data analytics helps organizations channel their resources towards the most efficient strategies. Insights gotten from data analytics can help you understand exactly what your customers want and when to act.ĭata analytics also enables businesses to identify their target audience easily. Improved customer satisfaction: When you're able to serve customers, you retain them and keep business going. This will enable them boost production of such products at the required time.Ī better decision making process will eliminate the need for guess work, and minimize losses and avoidable risks.

More precise decision making process: Data analytics helps organizations make more accurate decisions based on the insights gotten from data trends over time.įor example, a company selling different products can figure out what time of the year different products sell higher. You can then gain insights that'll help organizations make important predictions and decisions.ĭata analytics mostly involves studying data trends over a given period, and then extracting useful information from these trends.

Data analytics is the process of collecting, organizing, and analyzing raw data from different sources.

Data analysis in simple words