Advantages Of Data Analytics

Following are the advantages of data Analytics:

➨It detects and correct the errors from data sets with the help of data
cleansing. This helps in improving quality of data and consecutively benefits
both customers and institutions such as banks, insurance and finance
companies.
➨It removes duplicate informations from data sets and hence saves large
amount of memory space. This decreases cost to the company.
➨It helps in displaying relevant advertisements on the online shopping
websites based on historic data and purchase behaviour of the users.
Machine learning algorithms are applied for the same. This helps in increasing
revenue and productivity of the companies.
➨It reduces banking risks by identifying probable fraudulent customers based
on historic data analysis. This helps institutes in deciding whether to issue
loan or credit cards to the applicants or not.
➨It is used by security agencies for surveillane and monitoring purpose based
on informations collected by huge number of sensors. This helps in preventing
any wrongdoings and/or calamities.

Data analytics assists organisations in making better

decisions.
Increase the work’s efficiency.
The analytics keeps you informed of changes in your
customers’ behaviour.
The analytics keeps you informed of changes in your
customers’ behaviour.

Improving product and service quality

Disadvantages Data Analytics
Following are the disadvantages of data Analytics:
➨This may breach privacy of the customers as their information such as
purchases, online transactions, subscriptions are visible to their parent
companies. The companies may exchange these useful customer databases
for their mutual benefits.
➨The cost of data analytics tools vary based on applications and features
supported. Moreover some of the data analytics tools are complex to use and
require training. This increases cost to the company willing to adopt data
analytics tools or softwares.
➨The information obtained using data analytics can also be misused against
group of people of certain country or community or caste.
➨It is very difficult to select the right data analytics tools. This is due to the
fact that it requires knowledge of the tools and their accuracy in analysing the
relevant data as per applications. This increases time and cost to the
company.
 Phases of data Analysis

1. Define the Problem or Research Question

2. Collect Data
3. Data Cleaning
4. Analyzing the Data
5. Data Visualization
6. Presenting Data
Each step has its own process and tools to make overall conclusions based
on the data.

1. Define the Problem or Research Question

In the first step of process the data analyst is given a problem/business task.
The analyst has to understand the task and the stakeholder’s expectations
for the solution. A stakeholder is a person that has invested their money and
resources to a project. The analyst must be able to ask different questions in
order to find the right solution to their problem. The analyst has to find the
root cause of the problem in order to fully understand the problem. The
analyst must make sure that he/she doesn’t have any distractions while
analyzing the problem. Communicate effectively with the stakeholders and
other colleagues to completely understand what the underlying problem is.
Questions to ask yourself for the Ask phase are:
 What are the problems that are being mentioned by my stakeholders?
 What are their expectations for the solutions?
2. Collect Data
The second step is to Prepare or Collect the Data. This step includes
collecting data and storing it for further analysis. The analyst has to collect
the data based on the task given from multiple sources. The data has to be
collected from various sources, internal or external sources. Internal data is
the data available in the organization that you work for while external data is
the data available in sources other than your organization. The data that is
collected by an individual from their own resources is called first-party data.
The data that is collected and sold is called second-party data. Data that is
collected from outside sources is called third-party data. The common
sources from where the data is collected are Interviews, Surveys, Feedback,
Questionnaires. The collected data can be stored in a spreadsheet or SQL
database.
A spreadsheet is a digital worksheet that contains rows and columns while a
database contains tables that have functions to manipulate the data.
Spreadsheets are used to store some thousands or ten thousand of data
while databases are used when there are too many rows to store. The best
tools to store the data are MS Excel or Google Sheets in the case of
Spreadsheets and there are so many databases like Oracle, Microsoft to
store the data.
3. Data Cleaning
The third step is Clean and Process Data. After the data is collected from
multiple sources, it is time to clean the data. Clean data means data that is
free from misspellings, redundancies, and irrelevance. Clean data largely
depends on data integrity. There might be duplicate data or the data might
not be in a format, therefore the unnecessary data is removed and cleaned.
There are different functions provided by SQL and Excel to clean the data.
This is one of the most important steps in Data Analysis as clean and
formatted data helps in finding trends and solutions. The most important part
of the Process phase is to check whether your data is biased or not. Bias is
an act of favoring a particular group/community while ignoring the rest.
Biasing is a big no-no as it might affect the overall data analysis. The data
analyst must make sure to include every group while the data is being
collected.
4. Analyzing the Data
The fourth step is to Analyze. The cleaned data is used for analyzing and
identifying trends. It also performs calculations and combines data for better
results. The tools used for performing calculations are Excel or SQL. These
tools provide in-built functions to perform calculations or sample code is
written in SQL to perform calculations. Using Excel, we can create pivot
tables and perform calculations while SQL creates temporary tables to
perform calculations. Programming languages are another way of solving
problems. They make it much easier to solve problems by providing
packages. The most widely used programming languages for data analysis
are R and Python.
5. Data Visualization
The fifth step is visualizing the data. Nothing is more compelling than a
visualization. The data now transformed has to be made into a visual (chart,
graph). The reason for making data visualizations is that there might be
people, mostly stakeholders that are non-technical. Visualizations are made
for a simple understanding of complex data. Tableau and Looker are the two
popular tools used for compelling data visualizations. Tableau is a simple
drag and drop tool that helps in creating compelling visualizations. Looker is
a data viz tool that directly connects to the database and creates
visualizations. Tableau and Looker are both equally used by data analysts
for creating a visualization. R and Python have some packages that provide
beautiful data visualizations. R has a package named ggplot which has a
variety of data visualizations. A presentation is given based on the data
findings. Sharing the insights with the team members and stakeholders will
help in making better decisions. It helps in making more informed decisions
and it leads to better outcomes.
6. Presenting the Data
Presenting the data involves transforming raw information into a format that
is easily comprehensible and meaningful for various stakeholders. This
process encompasses the creation of visual representations, such as charts,
graphs, and tables, to effectively communicate patterns, trends, and insights
gleaned from the data analysis. The goal is to facilitate a clear understanding
of complex information, making it accessible to both technical and non-
technical audiences. Effective data presentation involves thoughtful selection
of visualization techniques based on the nature of the data and the specific
message intended. It goes beyond mere display to storytelling, where the
presenter interprets the findings, emphasizes key points, and guides the
audience through the narrative that the data unfolds. Whether through
reports, presentations, or interactive dashboards, the art of presenting data
involves balancing simplicity with depth, ensuring that the audience can
easily grasp the significance of the information presented and use it for
informed decision-making.