Analytics is one of the most powerful tools for businesses and organizations, allowing them to make data-driven decisions that allow them to deliver the best possible results. Analytics can be broken down into four main types: descriptive, diagnostic, predictive, and prescriptive. In this blog, we'll review what 4 types of Data analytics is and how they can be used.
Descriptive analytics is a type of data analytics used to review data, summarize trends, and establish baselines. By looking at what has happened in the past, descriptive analytics can provide valuable insight into how to move forward. However, descriptive analytics does not enable predictive or diagnostic capabilities. That’s where other types of data analytics come into play. Read genuine Course Reviews
At its core, Diagnostic Analytics seeks to answer “Why?” by examining the past performance of an organization or system to identify patterns and solve problems. The key takeaway here is that you can use this type of data analysis to make informed decisions about how best to move forward.
In short, diagnostic analytics is all about taking a closer look at a problem or situation so that you can better understand it and then be able to take action towards resolving it. By identifying correlations between variables and reviewing historical trends – as well as tracking errors and abnormalities – companies can be proactive about removing roadblocks that could impede business growth.
Predictive analytics forecasts future outcomes based on historical trends, correlations and regression analysis (finding a correlation between two or more variables). Grouping customers according to their past behaviour is one example of predictive analytics that many businesses use to target promotions they believe will best resonate with those customers. Check out Professional Courses.
Prescriptive analytics is a powerful tool in helping organizations make better decisions with their data. It looks at several different key factors such as past patterns, current trends, customer feedback, available resources and more to provide specific solutions that can be used to improve overall performance and results.
The insights gained from prescriptive analytics enable businesses to take an informed approach when making decisions as they can better understand potential risks as well as opportunities associated with their actions.
