Analytics refers to the interpretation, discovery, and overall communication of data patterns that have meaningful applications those patterns in a business’s decision making. It essentially applies statistics to recorded information to optimize the performance, sales, and operation aspects of a company. Analytics are gaining popularity in the business world with more and more companies using them for performance improvement. Analytics have a variety of special areas that benefit business. When using analytics, you are taking part of a threefold process.
Predictive Analytics uses aspects like data mining, machine learning, and other predictive models to anticipate future events. It can be used to assess trends for retail or predict the function of new ventures. Business use predictive analytics to appropriately plan for the future. As they can be very accurate, they can boost the success of decision making. They take numerous factors into account such as: customers, employees, patients, vehicles, products, machines, and components. Predictive analytics is good for any business practice and can be beneficial to the start of any endeavor. From employee initiatives, to product launches, to consumer service having an accurate outcome already predicted can spell much success.
Descriptive Analytics looks more at the past than the future. They take all the data a business has generated and uses it to look at the changes the company has undergone. Such data is found in year-over-year price changes, month-to-month sales growth, number of users, increase or decrease in growth, and the total revenue of the company year-to-year. This allows companies to measure their performance, pinpoint problems, and log success. A great tool for strategizing optimization.
Prescriptive analytics is the last phase of an analytics program. It prescribes the best course of action a business can take to optimize its performance. This is based off …Continue reading