Understand four basic types of business analytics
Data is the core determinant of the kind of analytics one can apply. But what also matters here is the kind of business problem or need that is being addressed with this data. Depending on these factors and the time spectrum of a decision’s relevance and impact, business analytics can be classified into three types:
- Descriptive – This type of tool helps decision-makers to analyze a scenario by mapping out intersections, correlation and interplay of different data
- Diagnostic – This type of tool helps to go deep into the real causes of a problem. It unveils the exact points where action and attention is required
- Prescriptive – This type of tool goes a step ahead and presents answers for the pain-points. It helps to suggest solutions for business problems based on data
- Predictive – This type of tool is the most far-sighted one as it enables decision-makers to visualize future problems, patterns and incidents by applying simulation, deep processing, and extrapolation