SG Analytics

Life’s Possible

Back to Blogs

Everything You Need to Know About Data Analytics!

Published on Sep 20, 2022

What is Data Analytics? 

Companies that are data-driven are 58% (Pipartners) more likely to make
more money than those that aren't. Data analytics is a very important
part of any business because it helps organizations make informed
decisions. Data-driven decision-making reduces costs, boosts revenue,
improves customer experiences, and boosts operational efficiency. This
resource is typically unused. 

Log files, web servers, transaction data, and other customer-related data
are just a few examples of the massive amounts of data generated every
day by businesses around the world. Even more so, social media
platforms produce vast quantities of information. Every bit of data a
company collects should be mined for insights and used to inform
strategic moves. It is driven by analytics applied to data. The goal of data
analytics is to mine massive amounts of information for previously
overlooked patterns, trends, correlations, and insights so that informed
business decisions may be made. 

Many cutting-edge resources and technology are used by businesses

today for data analysis. Data analytics entails a wide range of methods,
many of which have been transformed into algorithms and other
mechanical processes to expedite the preparation of raw data for human
consumption. 

 
Need for Data Analytics 
Because of problems with the data's quality, businesses lose 20%
(Pipartners) of their revenue. Most businesses are constantly amassing
mountains of data, yet this information is meaningless in its current state.
Here is when analytic data comes in handy. Data analytics is the study of
data with the goal of gaining useful knowledge that can be put to
practical use in running a business. 

A data analyst's job is to take raw data and turn it into meaningful
information by extracting, organizing, and analyzing it. The data analyst's
final deliverable will be a set of recommendations for the company's
future actions based on the insights gleaned from the data. Data
analytics is a type of business information that helps businesses address
operational issues.  

Types of Data Analytics 

There are four main categories of data analysis that are used by
businesses of all sizes. Although we classify them, there is a close
relationship between them and they all contribute to one another.
Performing analytics requires more work and resources as the problem
becomes more complex. The depth of new understanding and value rises
simultaneously. 
 1. Predictive Analytics 
Analyzing data using predictive analytics provides insight and helps make
informed decisions. The goal of predictive analytics is to use historical
data to foretell future events or the likelihood of certain outcomes. 

Predictive analytics is built on a foundation of historical data and a variety

of statistical techniques, including but not limited to modeling, machine
learning, data mining, and even game theory. 

2. Descriptive Analytics 
In descriptive analytics, historical data is analyzed to prepare for future
events. It analyses past results and learns from them by sifting through
data to determine what factors led to success or failure. This kind of
analysis is used in virtually all forms of management reporting. 

In order to categorize consumers or potential customers, the descriptive

model uses quantitative measures of relationships in the data. Descriptive
analytics identifies numerous diverse correlations between customers
and products, as opposed to the singular emphasis of a predictive
model. 

3. Prescriptive Analytics 
Big data, mathematical science, business rules, and machine learning are
automatically synthesized in Prescriptive Analytics, which then predicts an
outcome and recommends a course of action to take advantage of the
prediction. In addition to forecasting future outcomes, prescriptive
analytics suggests actionable benefit from those predictions and displays
the implication of each decision alternative to the decision maker. 

In addition, Prescriptive Analytics can provide guidance on how to make

the most of a future opportunity or how to lessen the impact of a future
risk by presenting a range of potential decisions and showing the
consequences of each. 

4. Diagnostic Analytics 
In diagnostic analytics, historical data is prioritized over new information
when trying to determine the cause of a problem or provide a solution to
one. In looking at the past information on this issue, we seek out any
dependencies and patterns we can. 

Companies, for instance, use this analysis because it provides invaluable

insight into a problem, and they also maintain comprehensive records of
the resources at their disposal, since gathering data for each issue would
be a tedious and time-consuming process otherwise. 

Ways to Use Data Analytics 

After learning what data analytics are, let's explore how they can be
used.  

1. Improved Decision Making: Data analytics reduces uncertainty and

saves time by replacing it with empirical evidence. Whether it's picking the
appropriate content, organizing the proper marketing strategy, or
creating the perfect product. Data analytics allows businesses to get
useful insights that can be used to make better choices. 

2. Better Customer Service: Second, data analytics improves customer

service by letting you cater to each individual's requirements. Besides
providing customization, it also helps to strengthen client relationships.
Information about customers' preferences, problems, and more can be
gleaned by data analysis. It improves your ability to suggest products and
services to others. 

3. Efficient Operations: Data analytics can help you streamline your

operations, save money, and increase output, all while improving
efficiency. By learning more about them, you may save time and energy
producing content and advertisements that are less likely to resonate
with your target demographic. 

4. Effective Marketing: Fourth, data analytics allows for efficient marketing

by providing insight into the success or failure of individual efforts. This
aids in optimizing their performance. In addition, you may zero in on the
types of consumers who will have the highest propensity to respond to a
campaign and eventually become leads. 

Data Analytics Process 

The data analysis process, also known as the data analysis phases,
consists of collecting all relevant data, cleaning and organizing it,
examining it, and drawing conclusions from it. Here's what the procedure
entails: 
1. Understand the problem: The first stage in any analytics process is to
gain a firm grasp of the issue at hand. This includes coming to terms with
the challenges facing the company, outlining its long-term objectives,
and formulating a strategy to turn those goals into reality. Problems with
inventory turnover prediction, personalized product suggestions, order
cancellation, fraud detection, optimal truck routing, and other similar
situations arise frequently in the e-commerce industry. 

2. Gathering Data: The second step in fixing your company's issues is to

compile data on client interactions and business transactions over the
preceding few years. The data may include such things as the quantity of
a product sold, its price, the amount of money made from sales, and the
time at which an order was placed. Information from the past is very
important in determining how a company will develop in the future. 

3. Data Cleaning: Third, clean up the data you've gathered, which is likely
to be disorganized, sloppy, and full of unwelcome missing numbers. No
meaningful analysis can be done with that kind of information. In order to
prepare the data for analysis, it must be cleansed by removing junk,
duplication, and gaps. 

4. Data Exploration and Analysis: After collecting sufficient data, the next
step is exploratory data analysis. With the help of data visualisation and
business intelligence tools, this data can be analysed, interpreted, and
used to make predictions. Using these strategies, you can learn about the
impact of a feature and connect it to other variables. 

5. Interpreting the Results: Once you've analyzed the data and developed
conclusions, it's time to turn that information into a visual representation
by choosing the right charts and graphs to use. 

Although appealing visuals are helpful, they are not sufficient. If you want
your insightful findings to be put into action, you must be able to deliver
them to decision-makers and stakeholders in a way that is both
captivating and easy to understand. Data storytelling, or transforming
your data into an engaging tale, is the most effective method for doing
this. 

Why Is Data Analytics Important? 

Business performance can be greatly improved with the aid of data
analytics. By incorporating technology into the company model, firms can
find methods to save money by being more efficient. Let's dive into the
importance of Data Analytics - 

1. Data
analytics is the primary key to efficient decision making since it
provides crucial insights into whether a firm is headed in the right
direction. 

2. Markettrends can be identified and the mechanisms underlying the

success of one product or service vs another that may not be faring
as well explained with the help of competent data analysts, the
appropriate tools, and the necessary infrastructure. 

3. Using data analytics, companies can learn more about their clientele
 in terms of demographics, interests, and buying habits. Naturally, this
data can be utilized to refine marketing plans and better pitch items
and services to specific audiences. 

4. Productivity, efficiency, and revenue growth can all be fueled by data

analytics. Analysis of data sets can reveal areas for improvement,
procedures that can be improved or automated, opportunities to
increase productivity, and areas where resources would be better
spent elsewhere. 

5. Cost efficiency improves when bottlenecks that waste money are

isolated and eliminated, and when appropriate technological
measures are used to cut down on wasteful spending in key sectors
like operations and manufacturing. 

6. Business problems can be identified and their possible effects on the

company can be predicted with the use of data analytics. Therefore,
those data sets are extremely important when used properly and
driven by competent data analysts to aid in the operation of the
business and the prevention of losses. 

7. Business is bolstered by data analytics because it promotes

methodical thought, helps key decision-makers maintain focus,
enhances processes, and optimizes communication between
business executives and data professionals in order to propel the
proper dialogues. 

Business is bolstered by data analytics because it promotes methodical

thought, helps key decision-makers maintain focus, enhances processes,
and optimizes communication between business executives and data
professionals in order to propel the proper conversations. 

Benefits of data analytics for your business 

Data analytics is the key to unlocking the useful insights hidden in the
enormous diversity of data generated by businesses. Businesses can
benefit from data analytics in a wide variety of ways, including tailoring
their marketing strategies to each individual customer's preferences and
reducing the impact of previously unknown threats. Let's examine five
reasons why data analytics is useful. 

1. Make the Customer Experience Unique 

Businesses gather customer information through a number of distribution
methods, including traditional storefronts, online marketplaces, and social
media. Businesses can learn about their customers' tastes and interests
by using data analytics to compile detailed profiles based on this
information. 

2. Inform Business Decision-Making 

Data analytics can help organizations cut down on losses and make more
informed decisions. Predictive analytics can foresee potential outcomes
in response to business shifts, while prescriptive analytics can advise on
the best course of action for the company. 

3. Simplify Procedures 
Effective use of data analytics can boost a company's productivity. By
collecting and analyzing data from throughout the supply chain, we can
learn the source of any manufacturing delays or bottlenecks and better
anticipate where future issues may arise. Even so, many businesses,
especially in the retail sector, have difficulty finding the optimal balance
between stock and demand. 

4. Reducing Risk and Coping with Setbacks 

There are dangers lurking around every corner while doing business. Theft
by customers or employees, unpaid invoices, unsafe working conditions,
and legal liabilities all fall into this category. A company may be able to
better assess risks and implement preventative actions with the use of
data analytics. The information could help the company decide what kind
of security measures to implement in its stores and whether or not to sell
off any of its real estate. 

5. Enhance Safety 
Threats to data security are a problem for all businesses. Businesses can
utilize data analytics to determine what led to past data breaches by
analyzing and visualizing the pertinent data. The IT department, for
instance, can use data analytics software to read, process, and display
audit logs in order to trace the origins and causes of an incident. 

Also Read - The Biggest Trends in Data Analytics Forecasted for 2022. 

Conclusion 
Only 24.4% (Pipartners) of businesses have established data-driven
cultures in their firms. 

Data analytics aids people and businesses in verifying their data in a

world where reliance on information and statistics is growing. Data is
crucial for any business as it allows them to better understand their
customers, develop more effective marketing strategies, and broaden
their product offerings. As there are many benefits to data, but no way to
access them without the proper tools, data analytics tools and methods
are of the utmost importance. 

Though raw data can be useful in many ways, it can't be put to use for
business expansion until it's been analyzed. As a result, we can conclude
that data analytics is crucial to the growth of any organization, as it helps
to optimize a company's performance. A collection of raw numbers can
be converted into insightful, instructional insights that drive decision-
making and careful management using a range of tools and techniques. 

As a result of using data analytics, you can make sense of the past and
anticipate future patterns and behaviors, allowing you to make educated
decisions and adopt effective tactics rather than relying on guesswork.
Businesses and organizations can learn more about their customers, their
field, and the firm as a whole by analyzing data, giving them a leg up
when making decisions and preparing for the future. 

With a presence in New York, San Francisco, Austin, Seattle, Toronto,

London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer
in Research and Analytics, offers tailor-made services to enterprises
worldwide.                        

A leader in Data & Analytics, SG Analytics focuses on leveraging data

management & analytics and data science to help businesses discover
new insights and build strategies for business growth. Contact us today if
you are an enterprise looking to make critical data-driven decisions to
prompt accelerated growth and breakthrough performance.   
RELATED TAGS

data analytics

What are Data Analytics

Types of Data Analytics

Why Data Analytics

Importance of Data Analytics

Contributors

SGA Knowledge Team

We are a dynamic team of subject matter...

RELATED BLOGS
RELATED BLOG

Modern Data Management & AI: How are they Driving Innovation?

Subscribe to Tattva - ESG Newsletter

Email address*

*By sharing the information you have entered, you give your
express consent to SG Analytics to use the provided information to
contact you with relevant information related to its offerings and
services as and when required. SG Analytics secures all your
personal information from unauthorized access, use or disclosure.
personal information from unauthorized access, use or disclosure.
For more information, please visit our privacy policy.

CONTACT FORM

Say hi!

    

Contact Us FAQs Privacy Policy Cookie Policy

© 2022 SG Analytics Pvt. Ltd. All Rights Reserved.