Data analytics involves the analysis of several data sets to get valuable information from those data sets which help to solve the problems in statistics, programming, and mathematics and help businesses to grow and optimize their performance by decision making, improve risk management, and enhance customer experiences. Data analysis is done by first collecting the raw data, cleaning the data, and interpreting and visualizing it.
In this article, we will be discussing several types of Data Analytics, Methods of Data Analytics also the what are the different jobs related to Data Analytics as well as the importance of Data Analytics before all that Let’s explore a bit of What Data Analytics is.
What is Data Analytics?
Data Analytics is a process of converting raw data into useful insights. It includes a set of tools and technology that helps in the process of data collection, cleaning, transforming, and modelling data to achieve useful information, and with the support of that information, it helps in decision-making. Data analysis helps businesses to grow and optimize their performance through decision-making, improve risk management, and enhance customer experiences. By presenting the statistics it helps to summarise the quantitative data. It is mostly used in the finance industry. It is also used in agriculture, banking, retail, government, and so on.
Process of Data Analytics
Data analysts, data scientists, and data engineers together create data pipelines which helps to set up the model and do further analysis. Data Analytics can be done in the following steps which are mentioned below:
- Data Collection : It is the first step where raw data needs to be collected for analysis purposes. It consists of two steps in which data collection can be done. If the data are from different source systems then using data integration routines the data analysts have to combine the different data whereas sometimes the data are the subset of the data set. In this case, the data analyst would perform some steps to extract the useful subset and transfer it to the other compartment in the system.
- Data Cleansing : After collecting the data the next step is to clean the quality of the data as the collected data consists of a lot of quality problems such as errors, duplicate entries and white spaces which need to be corrected before moving to the next step. By running data profiling and data cleansing tasks these errors can be corrected. These data are organised according to the needs of the analytical model by the analysts.
- Data Analysis and Data Interpretation: Analytical models are created using software and other tools which interpret the data and understand it. The tools include Python, Excel, R, Scala and SQL. Lastly this model is tested again and again until the model works as it needs to be then in production mode the data set is run against the model.
- Data Visualisation: Data visualisation is the process of creating visual representation of data using the plots, charts and graphs which helps to analyse the patterns, trends and get the valuable insights of the data. By comparing the datasets and analysing it data analysts find the useful data from the raw data.
Types of Data Analytics
There are different types of data analysis in which raw data is converted into valuable insights. Some of the types of data analysis are mentioned below:
- Descriptive Data Analytics : Descriptive data Analytics is a type of data analysis which summarises the data set and it is used to compare the past results, differentiate between the weakness and strength, and identify the anomalies. Descriptive data analysis is used by the companies to identify the problems in the data set as it helps in identifying the patterns.
- Real-time Data Analytics: Real time data Analytics doesn’t use data from past events. It is a type of data analysis which involves using the data when the data is immediately entered in the database. This type of analysis is used by the companies to identify the trends and track the competitors’ operations.
- Diagnostic Data Analytics: Diagnostic Data Analytics uses past data sets to analyse the cause of an anomaly. Some of the techniques used in diagnostic analysis are correlation analysis, regression analysis and analysis of variance.The results which are provided by diagnostic analysis help the companies to give accurate solutions to the problems.
- Predictive Data Analytics: This type of Analytics is done in the current data to predict future outcomes. To build the predictive models it uses machine learning algorithms, statistical model techniques to identify the trends and patterns. Predictive data analysis is also used in sales forecasting, to estimate the risk and to predict customer behaviour.
- Prescriptive Data Analytics: Prescriptive data Analytics is an analysis of selecting best solutions to problems. This type of data analysis is used in loan approval, pricing models, machine repair scheduling, analysing the decisions and so on. To automate decision making companies use prescriptive data analysis.
Methods of Data Analytics
There are two types of methods in data analysis which are mentioned below:
1. Qualitative Data Analytics
Qualitative data analysis doesn’t use statistics and derives data from the words, pictures and symbols. Some common qualitative methods are:
- Narrative Analytics is used for working with data acquired from diaries, interviews and so on.
- Content Analytics is used for Analytics of verbal data and behaviour.
- Grounded theory is used to explain some given event by studying.
2. Quantitative Data Analysis
Quantitative data Analytics is used to collect data and then process it into the numerical data. Some of the quantitative methods are mentioned below:
- Hypothesis testing assesses the given hypothesis of the data set.
- Sample size determination is the method of taking a small sample from a large group of people and then analysing it.
- Average or mean of a subject is dividing the sum total numbers in the list by the number of items present in that list.
Skills Required for Data Analytics
There are multiple skills which are required to be a Data analyst. Some of the main skills are mentioned below:
Data Analytics Jobs
In Data Analytics For Entry level these job roles are available:
- Junior Data Analyst
- Junior Data Scientist
- Associate Data Analyst
In Data Analytics For Experienced level these mentioned job roles are available:
Importance and Usage of Data Analytics
Data analytics consists of many uses in the finance industry. It is also used in agriculture, banking, retail, government and so on. Some of the main importance of data analysis are mentioned below:
- Data Analytics targets the main audience of the business by identifying the trends and patterns from the data sets. Thus, it can improve the businesses to grow and optimise its performance.
- By doing data analysis it shows the areas where business needs more resources, products and money and where the right amount of interaction with the customer is not happening in the business. Thus by identifying the problems then working on those problems to grow in the business.
- Data analysis also helps in the marketing and advertising of the business to make it popular and thus more customers will know about the business.
- The valuable information which is taken out from the raw data can bring advantage to the organisation by examining present situations and predicting future outcomes.
- From data Analytics the business can get better by targeting the right audience, disposable outcomes and audience spending habits which helps the business to set prices according to the interest and budget of customers.
Therefore, Data Analytics can improve the businesses to grow and optimise its performance by decision making, improve risk management and enhance customer experiences by analysing raw data to make useful conclusions from the data by identifying the trends and patterns from the data sets. Data Analysis is mostly used in the finance industry. It is also used in agriculture, banking, retail, government and so on. Above are the mentioned processes of data analysis, types, methods and importance of data analysis.
FAQs on Data Analytics
1. What are the main components of Data Analytics?
The main components of data analytics include data collection, data cleaning, data transformation, data analysis, data visualization, data interpretation, predictive analytics, and prescriptive analytics.
2. What are some common techniques used in Data Analysis?
Common techniques in data analysis include regression analysis, clustering, classification, machine learning, statistical analysis, and natural language processing, among others.
3. What is the Use of Data Analytics in various industreis?
Data analytics is used across various industries, including business, healthcare, finance, marketing, sports, and more. It helps organizations gain insights, improve efficiency, reduce costs, and make informed decisions.
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