Analytics

Analytics is the systematic computational analysis of data or statistics. It is used for the discovery, interpretation, and communication of meaningful patterns in data. It also entails applying data patterns toward effective decision-making. It can be valuable in areas rich with recorded information. Analytics relies on the simultaneous application of statistics, computer programming, and operations research to quantify performance.

Organizations may apply analytics to business data to describe, predict, and improve business performance. It may apply to a variety of fields such as marketing, management, finance, online systems, information security, and software services. Since analytics can require extensive computation (see big data), the algorithms and software used for analytics harness the most current methods in computer science, statistics, and mathematics.

Marketing optimization

Marketing organizations use analytics to determine the outcomes of campaigns or efforts, and to guide decisions for investment and consumer targeting. Demographic studies, customer segmentation, conjoint analysis and other techniques allow marketers to use large amounts of consumer purchase, survey and panel data to understand and communicate marketing strategy.

HR analytics

HR analytics is the application of analytics to help companies manage human resources. Additionally, HR analytics has become a strategic tool in analyzing and forecasting Human related trends in the changing labor markets, using Career Analytics tools. The aim is to discern which employees to hire, which to reward or promote, what responsibilities to assign, and similar human resource problems.

Risk analytics

Predictive models in the banking industry are developed to bring certainty across the risk scores for individual customers. Credit scores are built to predict an individual's delinquency behavior and are widely used to evaluate the credit worthiness of each applicant. Furthermore, risk analyses are carried out in the scientific world and the insurance industry.

Challenges

In the industry of commercial analytics software, an emphasis has emerged on solving the challenges of analyzing massive, complex data sets, often when such data is in a constant state of change. Such data sets are commonly referred to as big data. Whereas once the problems posed by big data were only found in the scientific community, today big data is a problem for many businesses that operate transactional systems online and, as a result, amass large volumes of data quickly.

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Analytics vs Analysis

Data Analysis focuses on the process of examining past data through business understanding, data understanding, data preparation, modeling and evaluation, and deployment. It is a subset of data analytics, which takes multiple data analysis processes to focus on why an event happened and what may happen in the future based on the previous data. Data analytics is used to formulate larger organization decisions.

Data Analytics is a multidisciplinary field. There is extensive use of computer skills, mathematics, statistics, the use of descriptive techniques and predictive models to gain valuable knowledge from data through analytics. There is increasing use of the term advanced analytics, typically used to describe the technical aspects of analytics, especially in the emerging fields such as the use of machine learning techniques like neural networks, decision trees, logistic regression, linear to multiple regression analysis, and classification to do predictive modeling.