What it is, why you need it, how it works and what you can do with data analytics.
What is it?
Basically, it’s when we take raw data and analyze it so that we can use the information.
Why do we need it?
Being able to analyze data gives us the power to improve the quality of service we give our customers. It helps us improve things, from how machines operate, to the order that posts are displayed on a social media feed, and so much more.
By optimizing systems and processes, we are able to lower costs for us and the customer and find better ways of doing things and storing data.
Data analytics also gives us insight into customer trends and satisfaction. This means that we may just be able to give them what they want in terms of service, and even with new products.
How does data analytics work?
There are a few steps to data analysis, so let’s break it down:
- Grouping: Data can be grouped according to age, demographics, income, or gender.
- Collecting: Data is collected through various means, including staff, online, computers, cameras, and environmental sources.
- Organizing: Once the raw data has been collected, it needs to be organized and then analyzed. The data can be organized on a spreadsheet or other software that is good with stats.
- Cleaning: Before being used, the data is scrubbed clean of any errors, like duplication, incomplete data, etc.
What can be done with data analytics?
Data analytics helps us reach conclusions, based on what the analyst already knows.
Here are some of the conclusions we can reach based on data analytics:
- Descriptive: this gives us an overview of what has happened over time. g. Number of likes, shares, sales, etc.
- Diagnostic: here, we look at why something happened.
- Predictive: based on models, what do we think will happen in the future?
- Prescriptive: this shows us the suggested course of action, based on all of the above.
If you are wondering if you should be making use of data analytics, it may help to know who is already using it to the max. The travel and hospitality industry uses it to analyze problems and fix them quickly. The healthcare sector is able to make quick decisions based on structured and unstructured data analytics. And, of course, the retail industry uses data analytics by the truckload. They use it to assess customer trends and needs, analyze the constantly changing demands of shoppers, recommend products and increase profits.
Data analytics is like that high school project many of us had to do. It’s all about asking a bunch of questions to a bunch of people about a specific topic and using that data to draw conclusions. From those conclusions, we can make predictions and recommendations to help improve their lives, or ours, or both.
Data analytics are used to streamline everything, from production to marketing and everything in between. Because without effective analytics, you’re shooting in the dark.
How do you get started?
So, how do we help you leverage complex structured and unstructured data in order to find new ways to accelerate innovation and solve your business challenges? Have a look here to find out more!