Data Analytics

Data Analytics

Differences between Data Analytics and Statistics

Although data analytics and statistics bear many similarities, the two concepts differ. Critical differences between statistics and data analytics revolve around the tools and processes used to analyze data (Kozyrkov, 2019). On the one hand, statistical analysis involves using insights from a sample to represent a larger cohort. Analysts use inferences made from a cohort to represent an entire population. On the other hand, data analytics is the presentation of analysis outcomes so that non-technical people can understand them.

Analytical Tools

Descriptive Analytics

Descriptive analysis refers to the use of data, primarily historical, to explain what may have happened. While assessing historical data, an analyst identifies specific patterns portrayed and explains why they may repeat (Kalsbeek, 2020).

Predictive Analytics

Predictive analytics is the outcome of predictive analysis. They seek to explain what will happen in the future based on present patterns (Kalsbeek, 2020). Unlike descriptive data, predictive analysis is advanced and requires high-quality data.

Prescriptive Analytics

Prescriptive analytics is the most advanced, and it seeks to answer the question- what should be done? Complex scientific operations such as graph analysis, simulation, and complex event processing occur to come up with recommendations (Kalsbeek, 2020). It is the most complex analytical tool to apply.

Business Analytics

One of the ways to convert raw business data into operational information is through data visualization. For instance, converting data into graphical representation helps the organization acquire digestible information. For instance, if a business made $5 million, making graphs will help the organization realize what that means and its impact on the organization’s future.

Example

Tesla uses data analytics to guide the autopilot functionality in its autonomous vehicles. The cars are fitted with software to process vision, radar, and sonar. Consequently, the cars exchange such data whenever they pass each other on the road, improving road safety.

References

Kalsbeek, R. (2020). Where to Start With the 4 Types of Analytics. Https://Iterationinsights.com/. https://iterationinsights.com/article/where-to-start-with-the-4-types-of-analytics/

Kozyrkov, C. (2019). What’s the difference between analytics and statistics? Medium. https://towardsdatascience.com/whats-the-difference-between-analytics-and-statistics-cd35d457e17

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This week’s required readings explain the role that analytics plays in the modern business environment. Consider the following questions and respond in a minimum of 175 words:

Data Analytics

How is data analytics different from statistics?
Analytics tools fall into 3 categories:descriptive, predictive, and prescriptive. What are the main differences among these categories?
Explain how businesses use analytics to convert raw operational data into actionable information. Provide at least 1 example.
Consider the organization you work for (or another organization you’re familiar with). Does this organization use data analytics?If so, how is it used? If not, how could the organization use data analytics to improve its performance?