{"id":9004111223742713,"date":"2022-08-16T10:55:20","date_gmt":"2022-08-16T14:55:20","guid":{"rendered":"https:\/\/www.pragmaticinstitute.com\/?post_type=resources&p=9004111223742713"},"modified":"2022-08-16T10:55:20","modified_gmt":"2022-08-16T14:55:20","slug":"4-types-of-data-analytics-to-improve-decision-making","status":"publish","type":"resources","link":"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/data\/4-types-of-data-analytics-to-improve-decision-making\/","title":{"rendered":"4 Types of Data Analytics to Improve Decision Making"},"content":{"rendered":"

Data analytics<\/span><\/a> is the science of evaluating raw data to make outcomes from the data at hand and is crucial for organizations to make informed decisions. Therefore, when data is utilized effectively, businesses gain knowledge from past performance and make better decisions about their future actions.<\/span>
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This article will go through the four primary types of data analytics and how organizations can use them efficiently to drive business outcomes. Each type has a different goal and place in the data analytics process. Understanding how to analyze and extract insights from the data is the primary driver of successful businesses.<\/span><\/p>\n

Essentially, descriptive and diagnostic analytics are based on analyzing past data, while predictive and prescriptive analytics are making decisions about the future data. It\u2019s important to ask the right <\/span>questions<\/span><\/a> for each type of analytics to make the most out of the data available and help your organization\u2019s long-term goals.\u00a0<\/span><\/p>\n

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Descriptive<\/b>\u00a0<\/span><\/h3>\n

What happened?<\/b><\/h4>\n

Descriptive analytics is designed to help organizations answer questions about what happened. It looks at data and analyzes insights from the past to apply in the future. Focused on learning from past performance, organizations develop key performance indicators (KPIs) as strategies to help track successes or failures for future decisions.\u00a0<\/span><\/p>\n

In addition, descriptive analytics can identify numerous relationships between the product and customers. It is also designed to give businesses the basics of who, what, where, when and how. It provides the key metrics and serves as a foundation to dive deeper into the data.<\/span><\/p>\n

Below are some common examples of reports organizations use that can provide historical data:\u00a0<\/span><\/p>\n