DESCRIPTIVE ANALYTICS
● Process of using current and
historical data to identify trends
and relationships
● Helps your company understand
its market better
● Simplest form of data analytics
● Essential part of data analytics
as a solid understanding of the
past can provide useful insights
“What has happened?”
“What actions are needed?”
“What is the problem?”
Data sources -> convert them into
simple to understand ( drafts or graph
charts ) -> patterns, trends, insights
How it helps organizations:
● Current business performance
● Historical trends
● Strength and weaknesses
Tracking Key Performance Indicators
● Monthly growth, revenue, and
expenses
Track campaign performance
● Social media followers
Manufacturing Metrics
EXAMPLES
1. Customer Understanding
● Shopping history
2. Return on social media
initiatives
● Followers and
engagements
● Help them find out what
content is most popular
and what content the
should share
3. Summarized reports from
Google Analytics
4. Netflix Customer Analysis
● What is trending or
popular.
● E.g. “Trending Now” part
of its recommendation
system
5. Financial Metrics
● Allow you to monitor your
company’s financial health
over time
● E.g. produce financial
reports on
month-over-month sales
growth or year-over-year
product price changes
 ● Summarized data
PROCESS 5. Present Results
- Presented visually like
charts or other
1. Business Understanding
visualizations to form a
● What metrics you want to
data narrative
track
● What question you want to
be answered.
2. Data Understanding
● Identify the data required
from internal/external ADVANTAGES
sources
3. Data extraction & preparation ● Gives precise performance
● Good quality, suitable for picture
analysis ● Not require a deeper knowledge
● Time consuming but most of analysis or statistical methods
crucial ● Lays the foundation for
● ETL ( extract, transform, predictive and prescriptive
load ) analysis
○ extracting data ● Highlights gaps before they turn
from various into problems
different locations
○ transforming it so DISADVANTAGES
that all the relevant
data goes into a
● Touches only the surface of the
single table, view,
data
or dataframe for
● Do not point to “why” something
ease of querying
happened
○ loading it into a
● Cannot be used to make
new location
predictions
(usually inside a
data warehouse)
4. Data Analysis
● Investigating your data
set to look for any useful
information or anomalies
● Uses Excel or advanced
tools
● Uses Basic mathematical
and statistical operations