Though the deluge of data nurtures a business with invaluable benefits, it comes with a myriad of challenges for a CIO to separate gems from the junk. Thanks to data analytics which enables technocrats in filtering and synthesizing the raw data and deducing the useful information, which equips C-suite managers with actionable insights.
Modern marketing practices rely on digital technologies and customer data to create value, but this has led to increasing privacy concerns among consumers and regulators. On the other hand, brands have dual responsibilities – taking care of people’s privacy as well as catapulting the data to meet business objectives.
Data analytics is a process that transforms raw data into actionable insights, enabling businesses to improve decision-making, foster growth, and gain a deeper understanding of their processes and services. It helps create personalized customer experiences, optimize operations, and increase employee productivity.
Top executives of a company need foundational data analytics knowledge to make informed decisions. These professionals can benefit from data analytics skills in marketing, product management, finance, and human resources. Understanding the four key types of data analytics can help managers gain the most insights from their company's data, allowing for meaningful changes within your organization.
Descriptive Analytics is the foundation of other types of analytics, allowing for the extraction of trends from raw data and explaining what happened. It helps in understanding the root cause of an issue, such as a surge in sales for a product like a video game console. On the other hand, Diagnostic Analytics focuses on identifying the reasons behind the trend, comparing coexisting trends, and determining causal relationships.
Predictive Analytics, the third type of data analytics, helps predict future trends or events by analyzing historical data and industry trends, providing informed predictions for the future. And the fourth one, Prescriptive Analytics suggests actionable takeaways, making data-driven decisions.
To make informed decisions, CIOs must use descriptive, diagnostic, predictive, and prescriptive analytics in tandem. These types help understand a company's current situation, determine its trajectory, and plan actionable strategies. Depending on the problem and goals, they can also use multiple types or all sequentially.
