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Data Analytics - Definition Uses Examples Process

Data analytics is the science of analyzing raw datasets to derive conclusions and discover patterns, often utilizing machine learning and automated systems. The process includes steps such as determining criteria, collecting, organizing, and cleaning data, and encompasses four types: descriptive, diagnostic, predictive, and prescriptive analytics. Benefits of data analytics include improved decision-making, more effective marketing, and enhanced customer service.

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11 views

Data Analytics - Definition Uses Examples Process

Data analytics is the science of analyzing raw datasets to derive conclusions and discover patterns, often utilizing machine learning and automated systems. The process includes steps such as determining criteria, collecting, organizing, and cleaning data, and encompasses four types: descriptive, diagnostic, predictive, and prescriptive analytics. Benefits of data analytics include improved decision-making, more effective marketing, and enhanced customer service.

Uploaded by

SACHIN VERMA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Data Analytics - Definition, Uses, Examples, Process

corporatefinanceinstitute.com/resources/data-science/data-analytics

Data Analytics

What is Data Analytics?


Data analytics is the science of analyzing raw datasets in order to derive a conclusion
regarding the information they hold. It enables us to discover patterns in the raw data and
draw valuable information from them.

Data analytics processes and techniques may use applications incorporating machine
learning algorithms, simulation, and automated systems. The systems and algorithms
work on the unstructured data for human use.

These findings are interpreted and used to help organizations understand their clients
better, analyze their promotional campaigns, customize content, create content
strategies, and develop products. Data analytics help organizations to maximize market
efficiency and improve their earnings.

Summary

Data analytics is a process of analyzing raw datasets in order to derive a


conclusion regarding the information they hold.
Data analytics processes and techniques may use applications operating on
machine learning algorithms, simulation, and automated systems.
They help organizations understand their clients better, analyze their
promotional campaigns, customize content, create content strategies, and
develop products.

Process of Data Analytics

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Below are the common steps involved in the data analytics method:

Step 1: Determine the criteria for grouping the data

Data can be divided by a range of different criteria such as age, population, income, or
sex. The values of the data can be numerical or categorical data.

Step 2: Collecting the data

Data can be collected through several sources, including online sources, computers,
personnel, and sources from the community.

Step 3: Organizing the data

The data must be organized after it is collected so that it can be examined. Data
organization can take place on a spreadsheet or other type of software that is capable of
taking statistical data.

Step 4: Cleaning the data

The data is first cleaned up to ensure that there is no overlap or mistake. Then, it is
reviewed to make sure that it is not incomplete. Cleaning the data helps to fix or eliminate
any mistakes before the data goes to a data analyst for analysis.

Data Analytics Types

The following are the four fundamental types of data analytics:

4. Descriptive Analytics describes the happenings over time, such as whether the
number of views increased or decreased and whether the current month’s sales are
better than the last one.
5. Diagnostic Analytics focuses on the reason for the occurrence of any event. It
requires hypothesizing and involves a much diverse dataset. It examines data to
answer questions, such as “Did the weather impact the selling of beer?” or “Did the
new ad strategy affect sales?”

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6. Predictive Analytics focuses on the events that are expected to occur in the
immediate future. Predictive analytics tries to find answers to questions like, what
happened to the sales in the last hot summer season? How many weather forecasts
expect this year’s hot summer?
7. Prescriptive Analytics indicates a plan of action. If the chance of a hot summer
calculated as the average of the five weather models is above 58%, an evening shift
can be added to the brewery, and an additional tank can be rented to maximize the
production.

Benefits of Data Analytics

1. Decision making improves

Companies may use the information they obtain from data analytics to guide their
decisions, leading to improved results. Data analytics removes a lot of guesswork from
preparing marketing plans, deciding what material to make, creating goods, and more.
With advanced data analytics technologies, new data can be constantly gathered and
analyzed to enhance your understanding of changing circumstances.

2. Marketing becomes more effective

When businesses understand their customers better, they will be able to sell to them
more efficiently. Data analytics also gives businesses invaluable insights into how their
marketing campaigns work so that they can fine-tune them for better results.

3. Customer service improves

Data analytics provides businesses with deeper insight into their clients, helping them to
customize customer experience to their needs, offer more customization, and create
better relationships with them.

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