There are five types of data analysis to examine data from companies within the Data Analytics study. However, its study will depend on the specific situation you want to analyze. They are divided into:
1. Predictive analysis
Predictive analytics in Data Analytics allows us to prepare for actions that are likely to occur in the future. It is a type of analysis carried out by studying forecasts through probabilities. As a tool, data analytics uses techniques such as regression and progression analysis or pattern matching and various types of statistics.
It is an important way of examining any sector by companies. However, it is imperative in the equity and investment market and insurance companies. We can end fraud, reduce financial risks, or increase profits from predictive analyses.
2. Descriptive analysis
In this type of analysis, Data Analytics reflects what has been happening so far. This can refer to both the near past and the current present. With this type of descriptive analysis, companies can receive information on the losses of customers they have suffered, the sales values of a specific product, and the results of the campaigns carried out recently.
For descriptive analysis, Data Analytics uses reports and graphs to have a global vision of the process followed by the company. Thus, they can make immediate decisions with a high level of security since the analysis is based on factual and current data.
3. Diagnostic analysis
On the other hand, if the causes of a specific situation are sought, the diagnostic analysis will clarify why something has happened. This is related to the above analysis. However, in this case, the causes of the current situation are carefully searched. In this way, you will study and relate all the available data to find patterns of behaviour that explain the results obtained. This type of diagnostic analysis is vital to troubleshooting problems and preventing them from happening again in the future.
4. Cognitive analysis
Cognitive analytics uses cognitive technologies to bring all these data sources within reach of decision-making and business intelligence analytics procedures. It is one of the latest technology trends in information technology.
Cognitive analytics combines various intelligent technologies, including semantics, artificial intelligence algorithms, and different learning approaches such as deep learning and machine learning.
5. Prescriptive analysis
Last on the list of types of analytics; we have Prescriptive analysis. With prescriptive analysis, possible situations are studied and interpreted if specific measures are taken. Above all, it is used by the sales area. In this way, hypotheses with their corresponding effects are raised. All this is to search for a more significant benefit for the company. In turn, it is related to automation processes, A / B testing, the establishment of routes for vehicles to reduce times or costs in transport, supply, or distribution.
Data analytics is a very vast field and it is very important to know the high level classification of types of data analytics before entering into this fast-paced, exponentially-growing field. Thorough understanding of these 5 types of data analytics is of utmost importance!