When it comes to developing new ways to enhance decision-making processes, data is one of your most valuable assets. However, you also need to leverage carefully selected data analysis techniques in order to derive the most value from your data.
Descriptive Analytics
Descriptive data focuses on looking at historical data in order to develop an understanding of what has occurred in the past. The idea here is that by looking at past events, you will be better equipped to look towards the future.
Descriptive analytics can allow you to both visualise and succinctly summarise past data trends. This will offer important context that you can then use as a starting point to identify everything from new opportunities to areas of concern.
Diagnostic Analytics
If you want to delve into the reasons behind certain trends or events, diagnostic analytics can enable you to find the root cause. Using a selection of techniques including data mining and hypothesis testing, diagnostic analytics can identify the events that prompted past events, such as customer behaviours, market demand, and company culture.
When you have the answers to your questions, you will be in a much better position to avoid making the same mistakes in the future and better placed to make decisions that will drive more positive outcomes.
Predictive Analytics
Predictive analytics can help you forecast future trends and events through the creation of data models that leverage historical data. This can be an invaluable tool to support proactive decision making, particularly if you’re in a very fast-paced sector.
A data analysis company, such as //shepper.com, will often use statistical modelling and machine learning algorithms with this type of data analysis which can be used in a number of ways, including detecting fraud and predicting churn.
Prescriptive Analytics
Prescriptive analytics can provide recommendations that may help you achieve specific goals, which is why it plays such a significant role in improving the overall operational efficiency of a business. Using simulation models and optimisation algorithms, prescriptive analytics evaluates scenarios and enables businesses to make more informed decisions efficiently.
