Different types of the analytics process
From the past years, the data becomes up for grabs in the daily operation of the business. When the data come into the picture with analytics, it becomes efficient for companies to make decisions. And companies must consider the analytic tools to get more out of data/information for better performance. To understand where the business currently stands, the data should be collected and metrics should be identified as a target.
Types of Analytics:
There are mainly three types of analytics. Generally, analytics starts with the simplest one and go further with the sophisticated types. The more complex analytics the more it brings value to the business.
Descriptive Analytics:
It is the most basic one. In simple words, we can say that descriptive analytics means “What happened in the past”. According to the book, It shows what was the trend in the past and how our past decisions affect the business i.e., to get valuable insides of the past and identify possible trends in data. With the help of statistical techniques and visualization tools, we can identify trends. Some popular visualization tools are Tableau, PowerBI, Excel.
Predictive Analytics:
Predictive analytics is nothing but “What is going to happen in the future?” In this type of analytics predictive models are built to predict future trends. With the help of Machine Learning (regression/time series forecasting) techniques, we can build predictive models. We cannot say that exactly this trend is going to happen in the future, but that might can happen.
Prescriptive analytics:
“What should be done?”- this is prescriptive analytics. The main purpose of prescriptive analytics, after analyzing past data and future behavior, what action should be taken to get a more desired outcome by optimally allocating the resources. The prescriptive analytics model is constantly “learning” through feedback (from predictive analytics) to get the optimal solutions.
This blog was originally written by Jigna Chandarana. She is working as a Machine Learning Intern at Beneath Analytics Pvt Ltd. She is having expertise in building highly scalable and advanced level Machine learning models.
