๐—ง๐˜†๐—ฝ๐—ฒ๐˜€ ๐—ผ๐—ณ ๐——๐—ฎ๐˜๐—ฎ ๐—”๐—ป๐—ฎ๐—น๐˜†๐˜๐—ถ๐—ฐ๐˜€

Data alone does not create value. You must understand what it means to make better decisions.

Organizations use four types of analytics to move from simple reports to smart actions.

  1. Descriptive Analytics This answers: What happened? It summarizes past events using historical data. โ€ข Monthly sales reports โ€ข Revenue growth tracking โ€ข Website traffic numbers Tools: Excel, Power BI, Tableau.

  2. Diagnostic Analytics This answers: Why did it happen? It looks for root causes and patterns. โ€ข Finding why website traffic dropped โ€ข Identifying why sales decreased โ€ข Analyzing correlations between variables Tools: Data mining, drill-down analysis.

  3. Predictive Analytics This answers: What will happen next? It uses historical patterns to forecast the future. โ€ข Predicting next month sales โ€ข Estimating customer churn โ€ข Detecting potential fraud Tools: Machine Learning, Python, Statistical modeling.

  4. Prescriptive Analytics This answers: What should we do? It suggests the best course of action. โ€ข Recommending delivery routes โ€ข Suggesting budget changes to increase profit โ€ข Automating decision workflows Tools: AI, Optimization algorithms.

The progression works like this: Descriptive โž” Diagnostic โž” Predictive โž” Prescriptive

As you add AI, these processes get faster. AI can detect patterns and recommend actions without manual work.

The companies that win will not just collect data. They will use it to act.

Source: https://dev.to/raju_ashokit_8ce772fb366a/types-of-data-analytics-descriptive-diagnostic-predictive-and-prescriptive-1b7c