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3 Data Analytics Techniques

Data analytics involves analyzing raw data to extract meaningful insights that inform business decisions. It encompasses various methods and techniques, including regression analysis, factor analysis, and cohort analysis, to process different types of data, such as quantitative and qualitative. Understanding data analysis is essential for organizations to leverage big data effectively and enhance their business strategies.

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2 views17 pages

3 Data Analytics Techniques

Data analytics involves analyzing raw data to extract meaningful insights that inform business decisions. It encompasses various methods and techniques, including regression analysis, factor analysis, and cohort analysis, to process different types of data, such as quantitative and qualitative. Understanding data analysis is essential for organizations to leverage big data effectively and enhance their business strategies.

Uploaded by

Anant Barjatya
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Data Analysis Methods and

Techniques
Data analytics
• Data analytics is the process of analyzing raw data to draw out
meaningful insights.
• These insights are then used to determine the best course of action.
• When is the best time to roll out that marketing campaign?
• Is the current team structure as effective as it could be?
• Which customer segments are most likely to purchase your new
product?
• Ultimately, data analytics is a crucial driver of any successful business
strategy.
• But how do data analysts actually turn raw data into something
useful?
• There are a range of methods and techniques that data analysts use
depending on the type of data in question and the kinds of insights
they want to uncover.
Agenda
• In this lecture, we’ll explore some of the most useful data analysis
techniques.
• By the end, you’ll have a much clearer idea of how you can transform
meaningless data into business intelligence.
What is data analysis and why is it important?

• Data analysis is, put simply, the process of discovering useful


information by evaluating data.
• This is done through a process of inspecting, cleaning, transforming,
and modeling data using analytical and statistical tools, which we will
explore in detail in next lecture.
Why is data analysis important?

• Analyzing data effectively helps organizations make business


decisions.
• Nowadays, data is collected by businesses constantly: through
surveys, online tracking, online marketing analytics, collected
subscription and registration data (think newsletters), social media
monitoring, among other methods.
• These data will appear as different structures, including—but not
limited to—the following:
Big data
The concept of big data—data that is so large, fast, or complex, that it is difficult or
impossible to process using traditional methods—gained momentum in the early
2000s.
Then, Doug Laney, an industry analyst, articulated what is now known as the
mainstream definition of big data as the three Vs: volume, velocity, and variety.
• Volume: As mentioned earlier, organizations are collecting data constantly. In the
not-too-distant past it would have been a real issue to store, but nowadays
storage is cheap and takes up little space.
• Velocity: Received data needs to be handled in a timely manner. With the growth
of the Internet of Things, this can mean these data are coming in constantly, and
at an unprecedented speed.
• Variety: The data being collected and stored by organizations comes in many
forms, ranging from structured data—that is, more traditional, numerical data—
to unstructured data—think emails, videos, audio, and so on. We’ll cover
structured and unstructured data a little further on.
Metadata

• This is a form of data that provides information about other data,


such as an image. In everyday life you’ll find this by, for example,
right-clicking on a file in a folder and selecting “Get Info”, which will
show you information such as file size and kind, date of creation, and
so on.
Real-time data

• This is data that is presented as soon as it is acquired. A good example


of this is a stock market ticket, which provides information on the
most-active stocks in real time.
Machine data

• This is data that is produced wholly by machines, without human


instruction. An example of this could be call logs automatically
generated by your smartphone.
Quantitative and qualitative data

• Quantitative data—otherwise known as structured data— may


appear as a “traditional” database—that is, with rows and columns.
• Qualitative data—otherwise known as unstructured data—are the
other types of data that don’t fit into rows and columns, which can
include text, images, videos and more.
• https://careerfoundry.com/en/blog/data-analytics/difference-
between-quantitative-and-qualitative-data/
What is the difference between quantitative and
qualitative data?
• How you analyze your data depends on the type of data you’re
dealing with—quantitative or qualitative. So what’s the difference?
• Quantitative data is anything measurable, comprising specific
quantities and numbers. Some examples of quantitative data include
sales figures, email click-through rates, number of website visitors,
and percentage revenue increase.
• Quantitative data analysis techniques focus on the statistical,
mathematical, or numerical analysis of (usually large) datasets. This
includes the manipulation of statistical data using computational
techniques and algorithms. Quantitative analysis techniques are often
used to explain certain phenomena or to make predictions.
• Qualitative data cannot be measured objectively, and is therefore
open to more subjective interpretation. Some examples of qualitative
data include comments left in response to a survey question, things
people have said during interviews, tweets and other social media
posts, and the text included in product reviews. With qualitative data
analysis, the focus is on making sense of unstructured data (such as
written text, or transcripts of spoken conversations). Often,
qualitative analysis will organize the data into themes—a process
which, fortunately, can be automated.
Data Analytics Techniques

• There are several different analytical methods and techniques data analysts
can use to process data and extract information. Some of the most popular
methods are listed below.
• Regression analysis entails analyzing the relationship between dependent
variables to determine how a change in one may affect the change in
another.
• Factor analysis entails taking a large data set and shrinking it to a smaller
data set. The goal of this maneuver is to attempt to discover hidden trends
that would otherwise have been more difficult to see.
• Cohort analysis is the process of breaking a data set into groups of similar
data, often broken 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 model the probability of different outcomes
happening. 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.
• https://careerfoundry.com/en/blog/data-analytics/data-analysis-
techniques/

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