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Discover the Art of Business Analytics: Unraveling the Four Essential Type
Are you curious about how businesses use analytics to tackle problems and reach their goals? The answer lies in the four primary types of analytics: descriptive, diagnostic, predictive, and prescriptive.
Each serves a distinct purpose and plays a vital role in shaping a company’s decision-making process. Let’s dive into each type and explore real-life examples.
Descriptive Analytics: The Backbone of Business Insights
Descriptive analytics is the most commonly practiced form of data analysis. It focuses on revealing trends and relationships within current and historical data. By utilizing basic math, statistics, and visual aids like graphs and charts, descriptive analytics provides a clear picture of a company’s performance.
Example: The Walt Disney Company uses descriptive analytics to share its financial performance with investors, offering insights into its revenue and business operations.
Diagnostic Analytics: The Detective of Data
Taking a step further, diagnostic analytics investigates why something is happening in the data. It helps businesses identify underlying issues and reasons behind trends. This type of analysis is crucial for understanding the root causes of problems and finding…
