Data analysis refers to qualitative and quantitative techniques and processes used to enhance productivity and business gain. Data is extracted and categorized to identify and analyze behavioral data and patterns, and techniques vary according to organizational requirements.

Types of Data Analysis

Data analytics is broken down into four basic types.

  1. Descriptive analysis describes what has happened over a given period of time. Have the number of views gone up? Are sales stronger this month than last?
  2. Diagnostic analysis focuses more on why something happened. This involves more diverse data inputs and a bit of hypothesizing. Did the weather affect beer sales? Did that latest marketing campaign impact sales?
  3. Predictive analysis moves to what is likely going to happen in the near term. What happened to sales the last time we had a hot summer? How many weather models predict a hot summer this year?
  4. Prescriptive analysis suggests a course of action. If the likelihood of a hot summer is measured as an average of these five weather models is above 58%, we should add an evening shift to the brewery and rent an additional tank to increase output.