In today’s fast-paced world, businesses must stay competitive. However, every company needs insights to make the best business decisions. One way to achieve this is through data analytics. This process has become a crucial element that can drive business success.
Data analytics isn’t just a tool for looking at what has happened; it can also predict future trends and recommend actions to take. Given the many uses of data analytics, it’s a shame not to understand and maximize each type of data analytics available.
This article will discuss the types of data analytics, how it can benefit your business, and the best solutions available. Learn more below.
What is Data Analytics?
Data analytics is the process of analyzing raw data to make it more meaningful for businesses so that it can provide specific insights for decision-making by company stakeholders.
Beyond decision-making, data analytics can be useful for various purposes, such as identifying trends, evaluating past decisions, and more. Therefore, data analytics has become quite important in today’s business world.
4 Types of Data Analytics
Data analytics consists of several types, each with different functions. Here are four types of data analytics you need to know.
1. Descriptive Analytics
This is the most basic type of data analytics, used to identify what has happened or is currently happening, allowing you to analyze patterns or trends. Descriptive analytics is typically presented in monthly sales reports or customer retention reports.
2. Diagnostic Analytics
Diagnostic analytics is more in-depth, as it examines data to understand the causes of specific issues. For example, once you see a particular trend or pattern in the data, you can understand why it occurred.
3. Predictive Analytics
As the name suggests, predictive analytics is used to anticipate what will or might happen based on existing data. You can perform this analysis by examining historical data and industry trends.
4. Prescriptive Analytics
Lastly, prescriptive analytics not only predicts outcomes but also recommends actions the company should take.
Now that you know the different types of data analytics and their functions, the next question is, what are the benefits for your business? Learn more below.
Why is Data Analytics Important for Businesses?
Data analytics plays a crucial role, especially in formulating strategies in modern businesses. With the right business analysis, companies can make more profitable decisions. Here are some reasons why data analytics is essential for your business.
1. Accurate Decision Making
With data analytics, you can make data-driven decisions that tend to be more accurate.
2. Business Operational Efficiency
Data can reveal areas that need improvement, allowing you to optimize operations more effectively.
3. Market Trend Predictions
You can more clearly see market trend predictions for better demand anticipation or service adjustments.
4. Discover New Opportunities
Analyzing market and competitor data can help you find opportunities for expanding or innovating products or services.
5. Simplified Statistical Calculations
Data analytics can simplify statistical calculations that are typically done manually.
6. Increased Profitability
With the ability to identify trends, opportunities, and more, you can outperform competitors and significantly increase profits.
4 Steps to Perform Data Analytics
To gain all these benefits, you need to follow the proper data analytics steps correctly.
1. Define the Right Questions
Before you begin analyzing existing data, the first step is to determine business objectives and problems. After that, create a series of questions you want to answer, such as which products you should develop, and more.
2. Gather Data
After identifying the questions, you need to collect data from various sources and find out which is most relevant to your business.
3. Process the Data
The data you’ve collected is raw and disorganized. Clean or process the data properly before analyzing it.
4. Analyze the Data
Finally, once the data is cleaned and organized, you can analyze it using the type of data analytics explained earlier.
After understanding the steps above, it’s time to choose the best data analytics solution for your business. We recommend Amazon QuickSight from AWS and Pentaho Data Analytics Tools from Hitachi Vantara. Want to know how these two solutions can help you?
Data Analytics Solutions from AWS and Hitachi Vantara
Data analytics solutions from these two well-known brands each have their own advantages to help you analyze data more effectively.
Amazon QuickSight from AWS
Amazon Web Services offers a variety of data analytics services, including Amazon QuickSight, a machine learning-based analytics service. QuickSight’s Amazon Q feature enables users to create, discover, and share insights within seconds.
The benefits of using Amazon QuickSight include reducing Business Intelligence (BI) solution costs by up to 74% over three years, increasing BI analytics adoption by 300%, and achieving a 275% ROI.
The features are designed for enterprise-level workloads and provide embedded analytics for every application.
Advantages:
- Insights in the form of dashboards, reports, natural language queries, and embedded analytics
- Faster development through a unified platform
- Automatically scale without the need to provision, manage, and maintain your own servers
- Serverless, so no need for software patches or hardware upgrades
Also Read: Amazon QuickSight dan Q: Solusi Analisis Data Generative BI dari AWS
Pentaho Data Analytics Tools from Hitachi Vantara
Pentaho’s data analytics tools are known for reducing operational data load by up to 80%, speeding up graph rendering by seven times, and saving data scientists’ time in finding and evaluating data by up to 55%.
Key Features:
- Develop and maintain efficient pipelines
- Extensible platform
- Accelerate data onboarding with metadata ingestion
- Executable with flexibility
Advantages:
- Flexible data integration
- Intelligent data migration, allowing you to move across hybrid clouds
- Scale out with enterprise-grade data management
Consult Your Data Analytics Solution with CDT
Consult your data analytics solution with Central Data Technology (CDT) today. Our experienced IT team will assist you from deployment, maintenance, to after-sales support for the implementation of Amazon QuickSight from AWS and Pentaho Data Analytics Tools from Hitachi Vantara.
Ready to consult now? Contact us through this link
Author: Anggita Olivia Herman – Content Writer CTI Group
