For different stages of business analytics huge amount of data is processed at various steps.
Depending on the stage of the workflow and the requirement of data analysis, there are four main kinds of analytics. These include descriptive, diagnostic, predictive, and prescriptive.
These four types together answer everything a company needs to know; from what’s going on in the company to what solutions to be adopted for optimizing the functions.
The four types of analytics are usually implemented in stages and no one type of analytics is said to be better than the other.
They are interrelated and each of these offers a different insight. With data being important to so many diverse sectors – from manufacturing to staffing, most of the companies rely on one or all of these types of analytics.
With the right choice of analytical techniques, big data can deliver richer insights for companies.
Let’s define the four types of analytics:
- Descriptive Analytics: Describing or summarising the existing data using existing business intelligence tools to better understand what is going on or what has happened.
- Diagnostic Analytics: Focus on past performance to determine what happened and why. The result of the analysis is often an analytic dashboard.
- Predictive Analytics: Emphasizes predicting the possible outcome using statistical models and machine learning techniques.
- Prescriptive Analytics: It is a type of predictive analytics that is used to recommend one or more courses of action on analyzing the data.
The four techniques in analytics may make it seem as if they need to be implemented sequentially. However, in most scenarios, companies can jump directly to prescriptive analytics.
As for most of the companies, they are aware of or are already implementing descriptive analytics but if one has identified the key area that needs to be optimized and worked upon, they must employ prescriptive analytics to reach the desired outcome.
According to research, prescriptive analytics is still at the budding stage and not many firms have completely used its power.
However, the advancements in predictive analytics will surely pave the way for its development.
Chameleon can help with your data analytic needs as well; feel free to check out our website https://chameleonbi.net/data-analytics-business-intelligence/ or request a demo at [email protected] to have better reports to analyze your data!