Data analytics involves the systematic computational analysis of data or statistics. Its goal is to find meaningful patterns and communicate them for effective decision-making.
For example, knowing that video game console sales spike every October and November could help you plan your marketing strategy. Data analytics can also make predictions about future trends, like a decline in sales.
Cloud-based storage
Using cloud storage in data analytics allows you to store a large volume of data and access it at anytime. This makes it easier for you to analyze your data and improve performance. It also eliminates the need to purchase expensive hardware and software for a “just in case” scenario.
A reputable cloud storage solution will provide redundancy by saving copies of your files on servers that are distributed across the world. This helps protect against human errors, equipment failure, and natural disasters. It can also manage peaks in data use.
Many organizations are relying on third-party managed cloud storage to support their business data. However, it is important to keep in mind that these third-party vendors must comply with IT security, audit and governance requirements. It is also important to review the terms of service and ensure they meet your IT requirements. This includes data retention policies, storage quotas, backup and recovery procedures, and other compliance requirements.
Big data
Big data is a huge collection of information that needs to be analyzed for valuable insights. This information can be used to improve operations, provide personalized customer service and make strategic business decisions. Companies that use big data have a competitive advantage over those that don’t.
Businesses use big data to analyze the buying behavior of their customers, track trends and anticipate demand. They also use it to make operational efficiency improvements and develop new products. For example, Netflix uses data on users’ reading, viewing and listening habits to create a personalized experience for each user. Procter & Gamble analyses its own and competitors’ products to predict which ones will sell best.
To use big data effectively, organizations need to have the right infrastructure and software in place. These include data integration tools and data processing systems. They also need to implement a robust data governance program and ensure that the data is accurate and reliable.
Machine learning
The process of data analytics begins with identifying which information to collect and how it will be used. This may involve a combination of manual processes and software tools. For example, an IT department might use software to record data on machine performance, or a team of data scientists may work with raw programming languages to transform databases and create graphical models.
The next step is to analyze the collected information to identify meaningful trends and metrics. Data analytics can help businesses optimize their systems and processes to save time, money, and effort. This can be done by using various methods, including predictive analysis and prescriptive analytics.
Advanced forms of data analytics include machine learning, which uses automated algorithms to sort through large data sets at a much faster pace than humans can. This allows for faster, more accurate results. For example, machine learning can be used to recommend products or detect fraud in credit card transactions or login attempts.
Data visualization
Data visualization is a vital part of the data analytics process. It can help you understand the relationships between different variables, make patterns easier to detect and understand, and more. Choosing the right visualization technique can be difficult, however. A poorly designed graph can be hard to interpret or may not convey the right message.
Data visualizations are also crucial for communicating your findings to others, whether they’re business stakeholders who can take action based on your insights or members of the public who are interested in your topic area. To be effective, they should be clear and concise, but also attractive and engaging.
Common data visualization techniques include line charts, scatter plots, and heatmaps. You can also use a population pyramid or treemap to show hierarchically organized data in a nested format. The leaf nodes of a treemap are represented by rectangles that are sized and colored according to their relative values.