Data analysis is a process of searching for information that could be used to predict, understand, or support the courses of action taken by businesses.
Taking information as it is, studying it to draw a conclusion, using it as a basis for making decisions in the business world are all part of the science of data analytics. Data analytics is one technique under data analysis and is divided into several general parts, namely: confirmatory data analysis (CDA), qualitative data analysis (QDA), and the exploratory data analysis.
CDA also known as statistical hypothesis testing is used in arriving to decisions based on the outcomes of experiments. It tests a current statistic or theory and either makes it significant or insignificant.
EDA is in contrast with CDA. Its approach is descriptive – without preconceptions. Unlike the confirmatory data analysis, the exploratory data analysis derives a theory or hypotheses based on what is found in the research. The questions to be answered usually arise from the data gathered unlike CDA where there are already a set of questions needing specific answers.
QDA is the process of analyzing data from different angles, aspects, focuses or perspectives. For instance, two people may be looking at the same thing but have totally different thoughts about it. This concept applies to QDA. How the data will be interpreted would depend on the purpose. Qualitative data analysis focuses on information that cannot be contained in numbers but in what can be deduced from images, videos, people watching, behaviours, and so on.
That said, some might confuse data analytics with data mining, when both are quite different. As data analytics focuses on what is already known and seen, data mining digs deeper to find other patterns and connections not yet discovered.
Various businesses are investing in data analytics because it has already proven its necessity in the world of trade. It doesn’t matter if it’s about buying or selling goods or services, the business world is intertwined with data analytics.
To put it simply, data analytics is a systematic way to understand information at hand, and use it to further business ventures. It helps companies decide what the next step would be and if that step would take them forward, or not. It has come a long way in the years that have passed and due to technology; data analytics is faster and more efficient. With the use of computers, and other kinds of modern equipment, more can be accomplished in shorter amounts of time.
