What is data analytics

• Data analytics is the process of collecting, analyzing, and interpreting

data to find patterns, trends, and correlations. It's a multidisciplinary
field that uses a variety of tools and techniques, including math,
statistics, and computer science.

• Data analytics can be used by different entities, such as businesses, to

optimize their performance and maximize their profits. This is done by
using software and other tools to gather and analyze raw data.
• Data analytics is a multidisciplinary field that involves the collection,
transformation, and organization of data to draw conclusions, make
predictions, and drive informed decision-making.
• It encompasses a wide range of techniques from mathematics,
statistics, and computer science to extract insights from data sets.
•Data analytics is the science of analyzing raw data to make conclusions about
that information.

•Data analytics help a business optimize its performance, perform more

efficiently, maximize profit, or make more strategically-guided decisions.

•The techniques and processes of data analytics have been automated into
mechanical processes and algorithms that work over raw data for human
consumption.

•Various approaches to data analytics include descriptive analytics, diagnostic

analytics, predictive analytics, and prescriptive analytics.

•Data analytics relies on a variety of software tools including spreadsheets, data

visualization, reporting tools, data mining programs, and open-source
languages.
For example, manufacturing companies often record the
runtime, downtime, and work queue for various machines
and then analyze the data to better plan workloads so the
machines operate closer to peak capacity.
Data analytics can do much more than point out bottlenecks
in production.

Gaming companies use data analytics to set reward schedules

for players that keep the majority of players active in the
game. Content companies use many of the same data
analytics to keep you clicking, watching, or re-organizing
content to get another view or another click.
• Data analytics is important because it helps businesses optimize their
performances. Implementing it into the business model means
companies can help reduce costs by identifying more efficient ways of
doing business.
• A company can also use data analytics to make better business
decisions and help analyze customer trends and satisfaction, which
can lead to new and better products and services.
Steps in Data Analysis
The process involved in data analysis involves several steps:
1.Determine the data requirements or how the data is
grouped. Data may be separated by age, demographic,
income, or gender. Data values may be numerical or divided
by category.
2.Collect the data. This can be done through a variety of
sources such as computers, online sources, cameras,
environmental sources, or through personnel.
3.Organize the data after it's collected so it can be analyzed.
This may take place on a spreadsheet or other form of
software that can take statistical data.
4.Clean up the data before it is analyzed. This is done by
scrubbing it and ensuring there's no duplication or error and
that it is not incomplete. This step helps correct any errors
before the data goes on to a data analyst to be analyzed.
Types of Data Analytics:

• Data analytics is broken down into four basic types:

• Descriptive analytics: This describes what has happened over a given period of time.
Have the number of views gone up? Are sales stronger this month than last?
• Diagnostic analytics: This focuses more on why something happened. It involves more
diverse data inputs and a bit of hypothesizing. Did the weather affect beer sales? Did
that latest marketing campaign impact sales?
• Predictive analytics: This moves to what is likely going to happen in the near term.
What happened to sales the last time we had a hot summer? How many weather
models predict a hot summer this year?
• Prescriptive analytics: This suggests a course of action. For example, we should add an
evening shift to the brewery and rent an additional tank to increase output if the
likelihood of a hot summer is measured as an average of these five weather models
and the average is above 58%,
• Data Analytics Techniques
• Data analysts can use several analytical methods and techniques to
process data and extract information. Some of the most popular
methods include:
• Regression Analysis: This entails analyzing the relationship between
one or more independent variables and a dependent variable. The
independent variables are used to explain the dependent variable,
showing how changes in the independent variables influence the
dependent variable.
• Factor Analysis: This entails taking a complex dataset with many
variables and reducing the variables to a small number. The goal of
this maneuver is to attempt to discover hidden trends that would
otherwise have been more difficult to see.
• Cohort Analysis: This is the process of breaking a data set into groups
of similar data, often into a customer demographic. This allows data
analysts and other users of data analytics to further dive into the
numbers relating to a specific subset of data.
• Monte Carlo Simulations: Models the probability of different
outcomes happening. They're often used for risk mitigation and loss
prevention. These simulations incorporate multiple values and
variables and often have greater forecasting capabilities than other
data analytics approaches.
• Time Series Analysis: Tracks data over time and solidifies the
relationship between the value of a data point and the occurrence of
the data point. This data analysis technique is usually used to spot
cyclical trends or to project financial forecasts.
• Time Series Analysis: Tracks data over time and solidifies the
relationship between the value of a data point and the occurrence of
the data point. This data analysis technique is usually used to spot
cyclical trends or to project financial forecasts.
Data Analytics Tools:

• Data analysts have a broad range of software tools to help acquire data, store
information, process data, and report findings.
• Microsoft Excel and Power BI
• Google Charts
• Tableau
• Hadoop
•R
• Python
• SAS(Statistical Analysis System)
• Apache Spark
Who uses data analysis tools?

• Data analysts: Data analysts use data analysis tools to uncover trends and insights
from complex data, which companies can use to guide better decision-making and
increase profits.
• Business analysts: Business analysts leverage these tools to help businesses optimize
operations and profitability based on data-driven decisions and strategies.
• Project managers: Project managers use data analysis tools for diverse tasks, from
budget management to problem-solving and enhancing team productivity.
• Digital marketers: Digital marketers use data analysis tools to craft effective marketing
strategies and campaigns, ensuring promotional activities hit the right target.
• Data scientists: Data scientists employ these tools to build new models and processes,
enabling data analysts to perform their jobs effectively and helping businesses
interpret complex data and resolve intricate problems.
• Tableau
• Primary use: Data visualization and business intelligence
• Tableau stands out as a leading data visualization software, widely utilized in
business analytics and intelligence.
• Google Charts
• Primary use: Data visualization
• Google Charts is a free online tool that excels at producing a wide array of
interactive and engaging data visualizations. Its design caters to user-friendliness,
offering a comprehensive selection of pre-set chart types that can be embedded
into web pages or applications. The versatile nature of Google Charts allows its
integration with a multitude of web platforms, including iPhone, iPad, and Android,
extending its accessibility.
• Microsoft Excel and Power BI
• Primary use: Business intelligence
• Microsoft Excel, fundamentally a spreadsheet software, also has noteworthy data
analytics capabilities. Because of the wide enterprise-level adoption of Microsoft
products, many businesses find they already have access to it.
• Google Analytics
• Primary use: Business intelligence
• Google Analytics is a tool that helps businesses understand how people interact with
their websites and apps. This code collects information when someone visits your
website, like which pages they see, what device they’re using, and how they found your
site. It then sends this data to Google Analytics, where it is organized into reports. These
reports help you see patterns, like which products are most popular or which ads are
bringing people to your site.
 Data analytics skills

Data analytics requires a wide range of technical data skills to

be performed effectively. Approaching the skills listed below
methodically—for example, by learning a little bit each day—
can help lead to mastery.
•Structured Query Language (SQL): a programming
language commonly used for databases
•Statistical programming languages:
R and Python are commonly used to create
advanced data analysis programs
•Machine learning: a branch of artificial intelligence
that involves using algorithms to spot data
patterns
•Probability and statistics: in order to better
analyze and interpret data trends
•Data management: the practices around
collecting, organizing and storing data
•Data visualization: the ability to use charts and
graphs to tell a story with data
•Econometrics, or the ability to use data trends to
create mathematical models that forecast future