In modern times, businesses are functioning in a scenario with slight or almost no error-making margins. Modern-day businesses face cutthroat competition due to too many players in almost all segments and therefore they need an edge or the utmost advantage that they can get. The other challenges faced by them are changing market trends, uncertain economic landscapes, fluctuating political agendas, short-lived customer attitudes, and the global pandemic situations too.
All the business setups who wish to thrive and stay ahead in this rat race can improve their chances of doing better by inculcating the habit of data analytics and knowing its significance in making more aware and informed decisions.
Data analysis is nothing but collecting relevant and useful information, analyzing the risks involved, the outcome, and its consequences. Data analysis is nothing but a strategy for taking better decisions with a strong basis and careful thinking. All business concerns need data and based on that, they derive useful information, hence the entry of data analysis into the picture. Data analysis is simply common sense which is applicable in personal life too.
Big Data is a term used in connection with data analysis and it plays a major role in the conversion of raw data into useful information.
The meaning of data analysis
Data Analysis involves filtering, modifying and customising raw data to extract useful and relevant information which assists in making well informed decisions involving lower risks. The analysis of information gives a better insight and provides statistical information presented in the form of charts, tables, bar graphs and images. Data analysis can be termed as the process of detailed analysis of the past and the future as we do in our daily lives before arriving at a conclusion and take a decision based on it.
Importance of data analysis
Better focus on customer base– Data analysis gives a clear picture of the customers to be targeted, so that a company can work on their advertising and promotion campaigns with more precision and use its resources to the optimum level. The company can invest its time and money to promote its business amongst the group that shows interest and can become a potential customer.
Know the potential customers better– Data analysis is a method which helps to track how a company’s advertisements and promotion is affecting its target customer base by studying their spending trends, their disposable income and their likes and dislikes. This analysis helps a company to fix prices, decide on the duration of ad campaigns and also estimate the projected quantity of goods in demand.
Cut down operational cost– This analysis shows which area needs more investment in terms of resources and money and the non-productive areas which can be eliminated.
Improved and safer problem solving techniques
Derivation of precise and accurate data
Data Analysis: the process
The process involves the following steps:
- Determine the motive for collecting data known as Data Gathering
- Collect important data known as Data collection
- Filter out the irrelevant data known as Data Cleaning
- Study the given data known as Data analysis
- Arrive at a conclusion based on the data known as Data interpretation
- Graphically represent data known as Data Visualisation
Data Analysis and research
This analysis plays an important role sifting through the information and eliminating the unnecessary information to arrive at more precise and relevant data which facilitates research work through the usage of various techniques mainly quantitative analysis, inferential analysis and descriptive statistics.
Data Analysis and its various forms
- Diagnostic Analysis- It answers the question “ Why did it occur?”
- Predictive Analysis-It answers the question “What is the most likely outcome?”
- Prescriptive Analysis-It gives a summary of the outcomes of each of the other analysis
- Statistical Analysis-It gives an answer to the question ”What happened?”. It has two components descriptive and inferential -depending on how the data is being used as a sample.
- Text Analysis- Another name for it is “Data Mining” and it transforms collected data into useful information.
Data Analytics as a career
Data Analytics is a broad term which encompasses the various steps, tools, methods and techniques used to transform raw data into useful business information and it is being applied to almost all the industries these days. Irrespective of the company size, data analytics is playing a major role in assisting businesses to assess their customer needs to make their business expand further. Data analysts are in great demand these days and it’s a fast paced career option.
Artificial Intelligence is in great demand and it works as an important tool in the realm of data analysis and when it works in conjunction with mathematics and statistics it works wonders and produces excellent outcomes. Therefore, Data Analytics is an upcoming career choice in the modern times.
