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ANALYTICS - by - Debdeep Ghosh

This document provides an overview of the four main types of data analytics: descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. For each type, it gives a definition, example using a scenario of patients going to an emergency room, and some applications. Descriptive analytics describes past trends, diagnostic analytics finds the causes of past events, predictive analytics forecasts future events, and prescriptive analytics recommends courses of action.

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Debdeep Ghosh
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204 views5 pages

ANALYTICS - by - Debdeep Ghosh

This document provides an overview of the four main types of data analytics: descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. For each type, it gives a definition, example using a scenario of patients going to an emergency room, and some applications. Descriptive analytics describes past trends, diagnostic analytics finds the causes of past events, predictive analytics forecasts future events, and prescriptive analytics recommends courses of action.

Uploaded by

Debdeep Ghosh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NATIONAL INSTITUTE OF FASHION

TECHNOLOGY
KOLKATA

DATA ANALYTICS & R


ASSIGNMENT-1

DATA ANALYTICS AND ITS TYPES

BY:
Debdeep Ghosh
(BFT/17/184)
DATA ANALYTICS
Analytics is the discovery and communication of meaningful patterns in data.
Especially, valuable in areas rich with recorded information, analytics relies on
the simultaneous application of statistics, computer programming, and
operation research to qualify performance. Analytics often favors data
visualization to communicate insight.
Firms may commonly apply analytics to business data, to describe, predict, and
improve business performance. Especially, areas within include predictive
analytics, enterprise decision management, etc. Since analytics can require
extensive computation(because of big data), the algorithms and software used
to analytics harness the most current methods in computer science.
There are four type of data analytics:

1. Descriptive (business intelligence and data mining)


2. Diagnostic analytics
3. Predictive (forecasting)
4. Prescriptive (optimization and simulation)

DESCRIPTIVE ANALYTICS
Descriptive analytics looks at data statistically to tell you what happened in the past. Descriptive
analytics helps a business understand how it is performing by providing context to help stakeholders
interpret information. This can be in the form of data visualizations like graphs, charts, reports, and
dashboards.

For example, in a healthcare setting, say that an unusually high number of people are admitted to
the emergency room in a short period of time. Descriptive analytics tells you that this is happening
and provides real-time data with all the corresponding statistics (date of occurrence, volume, patient
details, etc.).
Descriptive analytics can serve as that starting point or base for building your analytics strategy, with
some professionals estimating that 80% of business analytics involve descriptions based on
aggregations of past performance. Techniques like data aggregation, data mining, clustering and/or
summary statistics all serve to provide analytics that describe a past state—descriptive analytics.
APPLICATIONS

• It can help analyse Reports that are prepared to provide insight using descriptive tools, data
visualization tools to understand the distribution of data.
• It helps by Uncovering data about consumer behaviors,
• Customer engagements (helpful in targeted
• marketing)
• It also helps in Service improvement
• It can Extract important information such as central tendencies
and dispersion.
• Moreover, we can use them to describe the association
between several variables.

DIAGNOSTIC ANALYTICS
Diagnostic analytics takes descriptive data a step further and provides deeper analysis to answer the
question: Why did this happen? Often, diagnostic analysis is referred to as root cause analysis. This
includes using processes such as data discovery, data mining, and drill down and drill through.

In the healthcare example mentioned earlier, diagnostic analytics would explore the data and make
correlations. For instance, it may help you determine that all of the patients’ symptoms—high fever,
dry cough, and fatigue—point to the same infectious agent. You now have an explanation for the
sudden spike in volume at the ER.

Diagnostic analytics can provide guidance by helping to:


Identify outliers. For example, a sudden drop in sales or an explosion in website traffic that can’t be
explained may indicate a need for additional examination.
Isolate patterns. Analysts may need to look outside the existing dataset to identify the source of the
pattern. For example, a sudden drop in sales may have stemmed from the launch of
a disruptor.
Uncover relationships. Using more complex analytics, analysts may employ probability theory,
regression analysis, or time series to isolate cause and effect relationships.
To determine a “why” from your data, applying such techniques as principle components analysis,
sensitivity analysis and training algorithms for classification and regression analysis can all provide a
diagnosis—diagnostic analytics.
APPLICATIONS

• In a time series data of sales, diagnostic analytics


would help you understand why the sales have
decreased or increased for a specific year.
• It Provides understanding of relationships between
variables.
• A few techniques that uses diagnostic analytics include
attribute importance, principle components analysis,
sensitivity analysis, and conjoint analysis.
• Training algorithms for classification and regression
also fall in this type of analytics.

PREDICTIVE ANALYTICS
Predictive analytics takes historical data and feeds it into a machine learning model that considers
key trends and patterns. The model is then applied to current data to predict what will happen next.

Back in our hospital example, predictive analytics may forecast a surge in patients admitted to the
ER in the next several weeks. Based on patterns in the data, the illness is spreading at a rapid rate.

With predictive analytics, a data analyst uses quantitative analysis of the dataset and establishes
predictions, often called predictive modeling. This is a broader approach, which aims to characterize
predictions, examining models for their accuracy. Confidence intervals, T statistics, K-S statistics and
P values are all part of the umbrella of predictive analytics, applied in machine learning algorithms,
classification models and regression models, to name some examples.
APPLICATIONS

• Existing data is extrapolated to predict its future occurrence.


• Forecasts in sales and marketing.
• Predict the occurrence of an event such as 6s in an over by a
Batsman.
• sentiment analysis …….where opinions posted on social media
are collected and analyzed (existing text data) to predict the
person’s sentiment on a particular subject as being- positive,
negative or neutral (future prediction).

PRESCRIPTIVE ANALYTICS
Prescriptive analytics takes predictive data to the next level. Now that you have an idea of what will
likely happen in the future, what should you do? It suggests various courses of action and outlines
what the potential implications would be for each.

Back to our hospital example: now that you know the illness is spreading, the prescriptive analytics
tool may suggest that you increase the number of staff on hand to adequately treat the influx of
patients.
Prescriptive analytics models are constantly “learning” through feedback mechanisms to
continuously analyze action and event relationships and recommend the optimal solution.Artificial
intelligence, machine learning and neural network algorithms are often employed to
support prescriptive analytics by helping to make specific suggestions based on nuanced patterns
and perceptions of organizational goals, limitations and influencing factors.
APPLICATIONS

• Find the best solution under given choices.


• Empowers companies to make decisions based on optimization.
• It has direct hands in Quality improvements with correct quality prescription.
• It ensures Service improvements based on its analysis.
• It helps in Cost reduction and high efficiency.
• Increasing productivity and capacity

THANK YOU

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