TYPES OF DATA

ANALYTICS
UNIT-1
BIG DATA

Presented by:
Priyanka Rahi
 REPORTING V/S ANALYTICS
Reporting Analytics
Summarize and present data for informational Unearth insights and patterns for strategic decision-
Purpose
purposes. making.
Enables informed decision-making, tracks
In addition, analytics helps you understand why
Benefits performance trends, and fosters transparency and
things are happening and know what to do next.
accountability.
Primarily data analysts, data scientists, and
Users Primarily operational managers and executives.
executives.
In addition, analytics may employ advanced
Focus on simplicity and clarity, using visual aids to
Data Presentation statistical methods and models for more in-depth
convey information efficiently.
analysis.
Typically relies on structured data from established May encompass a broader range including
Data Source & Type
sources. unstructured, big data, and real-time data.
Data collection, organization, and presentation. Plus,
Process Data collection, organization, and presentation. data exploration, hypothesis testing, and advanced
analysis.
Reporting tools are usually user-friendly and Self-service analytics tools are user-friendly but
Tool Complexity straightforward, making them accessible to a wide advanced analysis and predictive modeling can
range of users without extensive technical training. require a higher level of technical expertise.
 REPORTING
 Reporting primarily involves the presentation of data in a structured format.
 Its purpose is to provide a snapshot of specific metrics or KPIs over a defined period.
 Reports are instrumental in summarizing information for stakeholders and are often automated
and scheduled on a regular basis.
 Data visualizations help identify trends, patterns, and anomalies more intuitively.
 Dashboards play a crucial role in presenting real-time data to stakeholders for quick decision-
making.
 ANALYTICS
 Analytics goes beyond summarizing data.
 Its primary purpose is to uncover meaningful insights and patterns within the data.
 Analytics aims to answer questions like ‘why’, ‘how’, and ‘what next’, by offering a deeper
understanding of the underlying factors driving performance.
 By leveraging advanced statistical techniques, analytics uncovers patterns, correlations, and
trends, shedding light on the underlying factors influencing business performance.
 TYPES OF DATA ANALYTICS
 There are four major types of data analytics:
1) Predictive (forecasting)
2) Descriptive (business intelligence and data mining)
3) Prescriptive (optimization and simulation)
4) Diagnostic analytics
 DESCRIPTIVE ANALYTICS
 Descriptive analytics refers to data that can be easily read and interpreted. This data helps create reports and visualize
information that can detail company profits and sales.
 This is the simplest form of analytics, where data is analyzed for general assessment and summarization. For example, in
sales reporting, an organization can analyze the efficiency of marketing from such data.
 The descriptive model quantifies relationships in data in a way that is often used to classify customers or prospects into
groups. Unlike a predictive model that focuses on predicting the behavior of a single customer, Descriptive
analytics identifies many different relationships between customer and product.
 Example: During the pandemic, a leading pharmaceutical company conducted data analysis on its offices and research
labs. Descriptive analytics helped them identify consolidated un-utilised spaces and departments, saving the company
millions of pounds.
 Descriptive analytics looks at data and analyze past event for insight as to how to approach future events. It looks at past
performance and understands the performance by mining historical data to understand the cause of success or failure in the
past. Almost all management reporting such as sales, marketing, operations, and finance uses this type of analysis.
 Common examples of Descriptive analytics are company reports that provide historic reviews like:
 Data Queries
 Reports
 Descriptive Statistics
 Data dashboard
 DIAGNOSTICS ANALYTICS
 Diagnostics analytics helps companies understand why a problem occurred. Big data technologies and
tools allow users to mine and recover data that helps dissect an issue and prevent it from happening in
the future.
 Example: An online retailer’s sales have decreased even though customers continue to add items to
their shopping carts. Diagnostics analytics helped to understand that the payment page was not
working correctly for a few weeks.
 This refers to analytics that determine why a problem occurred. For example, this could include
gathering and studying competitor pricing data to determine when a product's sales fell off because the
competitor undercut it with a price drop.
 In this analysis, we generally use historical data over other data to answer any question or for the
solution of any problem. We try to find any dependency and pattern in the historical data of the
particular problem.
 Common techniques used for Diagnostic Analytics are:
 Data discovery
 Data mining
 Correlations
 PREDICTIVE ANALYTICS
 Predictive analytics looks at past and present data to make predictions. With artificial intelligence (AI), machine learning,
and data mining, users can analyze the data to predict market trends.
 Example: In the manufacturing sector, companies can use algorithms based on historical data to predict if or when a piece of
equipment will malfunction or break down.
 This refers to analysis that predicts what comes next. For example, this could include monitoring the performance of
machines in a factory and comparing that data to historical data to determine when a machine is likely to break down or
require maintenance or replacement.
 Predictive analytics turn the data into valuable, actionable information. Predictive analytics uses data to determine the
probable outcome of an event or a likelihood of a situation occurring. Predictive analytics holds a variety of statistical
techniques from modeling, machine learning, data mining, and game theory that analyze current and historical facts to make
predictions about a future event.
 Techniques that are used for predictive analytics are:
 Linear Regression
 Time Series Analysis and Forecasting
 Data Mining

 Basic Cornerstones of Predictive Analytics

 Predictive modeling
 Decision Analysis and optimization
 Transaction profiling
 PRESCRIPTIVE ANALYTICS
 Prescriptive analytics goes beyond predicting future outcomes by also suggesting action benefits from the
predictions and showing the decision maker the implication of each decision option.
 Prescriptive Analytics not only anticipates what will happen and when to happen but also why it will
happen. Further, Prescriptive Analytics can suggest decision options on how to take advantage of a future
opportunity or mitigate a future risk and illustrate the implication of each decision option.
 Example: Within the energy sector, utility companies, gas producers, and pipeline owners identify factors
that affect the price of oil and gas to hedge risks.
 This form of analysis follows diagnostics and predictions. After an issue has been identified, it provides a
recommendation of what can be done about it. For example, this could include addressing inconsistencies
in supply chain that are causing pricing problems by identifying suppliers whose performance is
unreliable, suggesting their replacement.
 Prescriptive Analytics automatically synthesize big data, mathematical science, business rule, and machine
learning to make a prediction and then suggests a decision option to take advantage of the prediction.
 For example, Prescriptive Analytics can benefit healthcare strategic planning by using analytics to leverage
operational and usage data combined with data of external factors such as economic data, population
demography, etc.