“Data analysis is a process of inspecting, cleansing, transforming and modelling data with the goal of discovering useful information, informing conclusions and supporting decision-making.”
Data analysis, in simple terms, means drawing important conclusions after collecting and organising relevant data. The main purpose of data analysis is to extract useful data and make key informed decisions. This process of data analysis involves systematic application of statistical tools and logical reasoning to gain information and evaluate the data. This is relevant for businesses as they analyse past and future activities, performance, and decisions and transform information into initiatives for improvement.
Data-driven businesses have a tendency to make faster and better decisions. The International Data Corporation (IDC) has put forward a study which reveals that revenues from big data and business analytics will reach $274.3 billion by 2022.
With the help of business analytics solutions, Titan group added ₹800 crores to its attributable revenue in the last fiscal year. Also, data analytics helped the group to reach an accuracy rate of 93% in sales forecasting.
Data analysis makes it easier for users to interpret data to identify patterns and trends. There are different types of techniques used for data analysis and the method used depends upon the size and type of business. Some techniques are mentioned below:
- Text Analysis
- Statistical Analysis
- Diagnostic Analysis
- Predictive Analysis
- Prescriptive Analysis
- Descriptive Analysis
Data analysis helps the organisation to make the right choices and is used by businesses for market analysis, customer analysis, enterprise analysis, product analysis etc. Data integrity is an important component of analytics. The data used for this technology has to be reliable, complete, appropriate and accurate for absolute and relevant analysis.
The process of data analysis is based on extracting the information, preparing, integrating and finally consuming the data. It consists of the following:
- Requirement gathering
Data analytics technology is an aid for businesses to be more cohesive, efficient and informative than before. Businesses will be able to take useful actions when the quality of the collected data is checked and the analysis is thorough, precise and accurate.
Square Mile Global Consulting is a London-headquartered financial training and consulting company. We have partnered with the American Institute of Certified Public Accountants (AICPA) to offer certificate courses on Data Analysis, Cybersecurity and Blockchain.
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