Data Analytics?

Credits to: Jake Frankenfield with key takeaways on Algorithm by Lucas Downey

Data analytics is the science of analyzing raw data in order to make conclusions about that
information. Many of the techniques and processes of data analytics have been automated into
mechanical processes and algorithms that work over raw data for human consumption.

An algorithm is set of instructions for solving a problem or accomplishing a task. One common
example of an algorithm is a recipe, which consists of specific instructions for preparing a
dish/meal. Every computerized device uses algorithms to perform its functions.

• Computer algorithms make life easier by trimming the time it takes to manually do
things. In the world of automation, algorithms allow workers to be more proficient and
focused. Algorithms make slow processes more proficient. In many cases, especially in
automation, algos save companies money.

Data analytics techniques can reveal trends and metrics that would otherwise be lost in the mass
of information. This information can then be used to optimize processes to increase the overall
efficiency of a business or system.

In short, data analysis involves sorting through massive amounts of unstructured information and
deriving key insights from it. These insights are enormously valuable for decision-making at
companies of all sizes.

A quick note here: data analysis and data science are not the same. Although they belong to the
same family, data science is typically more advanced (a lot more programming, creating new
algorithms, building predictive models, etc.).

Data Analytics is sometimes used interchangeably with Data Analysis BUT the former is a broad
term that encompasses many diverse types of the latter. Any type of information can be subjected
to data analytics techniques to get insight that can be used to improve things.

The process involved in data analysis involves several different steps:

1. Define the question or goal behind the analysis: what are you trying to discover?

2. Determine the data requirements or how the data is grouped. Data may be separated by
age, demographic, income, or gender. Data values may be numerical or be divided by
category.
 3. The next step in data analytics is the process of collecting it. This can be done through a
variety of sources such as computers, online sources, cameras, environmental sources, or
through personnel. Collect the right data to help answer this question in 1.

4. Once the data is collected, it must be organized so it can be analyzed. Organization may
take place on a spreadsheet or other form of software that can take statistical data.

5. The data is then cleaned up before analysis. This means it is scrubbed and checked to
ensure there is no duplication or error, and that it is not incomplete. This step helps
correct any errors before it goes on to a data analyst to be analyzed.
• Perform data cleaning/data wrangling to improve data quality and prepare it for
analysis and interpretation–getting data into the right format, getting rid of
unnecessary data, correcting spelling mistakes, etc.

• Manipulate data using Excel or Google Sheets. This may include plotting the data
out, creating pivot tables, and so on.

6. Analyze and interpret the data using statistical tools (i.e. finding correlations, trends,
outliers, etc.).

7. Present this data in meaningful ways: graphs, visualizations, charts, tables, etc. Data
analysts may report their findings to project managers, department heads, and senior-
level business executives to help them make decisions and spot patterns and trends.

[Important: Data analytics focuses on coming to conclusions based on what the analyst
already knows.]

Key Takeaways

• Data analytics is the science of analyzing raw data in order to make conclusions about
that information.
• The techniques and processes of data analytics have been automated into mechanical
processes and algorithms that work over raw data for human consumption.
• Data analytics help a business optimize its performance.

Why Data Analytics Matters

Data analytics is important because it helps businesses optimize their performances.
Implementing it into the business model means companies can help reduce costs by identifying
more efficient ways of doing business and by storing large amounts of data.

A company can also use data analytics to make better business decisions and help analyze
customer trends and satisfaction, which can lead to new—and better—products and services.
Types of Data Analytics
Data analytics is broken down into four basic types.

1. Descriptive analytics

• Describes what has happened over a given period of time.

• Have the number of covid cases gone up?
• Are cases in the different regions stronger this month than last?

2. Diagnostic analytics

• focuses more on why something happened. This involves more diverse data inputs
and a bit of hypothesizing.
• Did the cold weather affect covid shoot – up cases?
• Did that latest health campaign impact covid cases?

3. Predictive analytics

• moves to what is likely going to happen in the near term…

• What happened to covid number the last time we had a cold December? How
many weather models predict a cold December this year?

4. Prescriptive analytics

• suggests a course of action. If the likelihood of a cold December is measured as

an average of five weather models is above 60%, we should add an evening shift
to the hospitals and rent an additional billeting hotels to accommodate increase
patients.