Deep Dive — Types of Business Analytics!
This blog aims to explain everything about the types of Business Analytics with their core & real-life examples. In addition to that, how much statistics knowledge is required for each analytics to perform is also been listed in this blog.
Business is been a very important part of this world, without business, no country can survive at present. Whether it be a business at an enterprise level, MNC level, or individual level, everyone wants to grow its business to maximize profit.
With the evolution of technologies, business analytics has emerged as a very important aspect for business. The reason behind the great success of business analytics is that it is a core skill that helps the business to grow exponentially.
In the current situation, where every business wants to grow, almost all the intermediate to advanced level businesses use the concept of Business Analytics to expand the business. Some small businesses are not able to use this concept, the reason behind that is they are unaware of the concept.
Since Business Analytics is a very famous & beneficial concept, that is why almost all businesses use it. But, it is very important to know all the types of Business Analytics, what they signify, & what are the areas where they are implemented.
Many people are confused among one or the other types of Business Analytics. Therefore, I have decided to publish this blog to make everyone comfortable with the topic. Having the right knowledge of this topic is very important. Now, that being said, let us begin with the actual concepts.
Types of Business Analytics
There exist 4 types in Business Analytics, everyone has their own implementation technique & importance. These analytics when used in combination can boost the performance of any business exponentially.
Types of Business Analytics are as follows:
- Descriptive Analytics
- Diagnostic Analytics
- Predictive Analytics
- Prescriptive Analytics
Let’s begin with the explanation of each type.
Descriptive Analytics
This is the part of the Business Analytics that is responsible for the observation of the events in the past. It tells that what happened in the past.
As it is clear from the name itself, this analytic is used for describing the events that occurred in the past. Using this business analytic, multiple insights can be gained that help the business in specific areas where improvement is required.
To excel in this area, an intermediate level of statistics is required.
For Example, If there is a restaurant, & by performing the descriptive analytics on the dataset of the restaurant, it is been found that the sales of the restaurant at a particular region are declined drastically a few months back. This is the insight that can be gained by using this business analytic.
Diagnostic Analytics
This is the part of the Business Analytics that is responsible for providing the reason behind the insights gained from the descriptive analytics. It tells that why some event occurred.
Using this business analytic, the reason behind the occurrence of an event can be identified, & then various actions can be taken accordingly.
To excel in this area, an intermediate level of statistics is required.
For Example, The reason behind the insight that is been gained from the descriptive analytics can be that the quality of food material used was degraded drastically.
Predictive Analytics
This is the part of Business Analytics that is responsible for predicting what can happen in the future. It predicts the events in the future.
Using this business analytic, future events can be predicted & accordingly arrangements can be done.
To excel in this area, an intermediate level of statistics is required.
For Example, In the future, by observing the track record of the employees, it is a possibility that the food quality may degrade again.
Prescriptive Analytics
This is the part of Business Analytics that is responsible for telling the ways that can help to influence the outcomes in the future. It has the capability that can either boost future events or stop their pace based on the event consequences on the business.
To excel in this area, an expert level of statistics is required.
For Example, if in the future, food quality may degrade again, preventive measures can be implemented or the security can be enhanced at the restaurant to prevent the food quality from being degraded.
I hope my article explains each and everything related to the topic with all the deep concepts and explanations. Thank you so much for investing your time in reading my blog & boosting your knowledge. If you like my work, then I request you to give an applaud to this blog & follow me on Medium & GitHub!
