DATA ANALYSIS

DEFINITION

 Data analysis is the process of collecting, modelling, and analysing

data to extract insights that support decision-making.
 Data analysis is the science of examining data to conclude the
information to make decisions or expand knowledge on various
subjects.
IMPORTANCE OF DATA ANALYSIS
 IMPORTANCE OF DATA ANALYSIS

 Make faster and more informed business decisions backed by facts.

 Identify performance issues that require action.
 Gain a deeper understanding of customer requirements, which creates better business
relationships.
 Increase awareness of risks to implement preventive measures.
 Visualize different dimensions of the data.
 Gain competitive advantage.
 Better understand the financial performance of the business.
 Identify ways to reduce costs and thus increase profits.
DATA ANALYSIS PROCESS

 When we talk about

analyzing data there is an
order to follow in order to
extract the needed
conclusions. The analysis
process consists of 5 key
stages.
STAGES OF DATA PROCESS

 Identify

The identification is the stage in which you establish the questions you
will need to answer. For example, what is the customer's perception of
our brand? Or what type of packaging is more engaging to our potential
customers? Once the questions are outlined you are ready for the next
step.
 STAGES OF DATA PROCESS

 Collect

As its name suggests, this is the stage where you start collecting the needed
data. Here, you define which sources of information you will use and how you
will use them. The collection of data can come in different forms such as
internal or external sources, surveys, interviews, questionnaires, focus groups,
among others. An important note here is that the way you collect the
information will be different in a quantitative and qualitative scenario.
 STAGES OF DATA PROCESS

 Clean

Once you have the necessary data it is time to clean it and leave it ready for
analysis. Not all the data you collect will be useful, when collecting big amounts
of information in different formats it is very likely that you will find yourself
with duplicate or badly formatted data. To avoid this, before you start working
with your data you need to make sure to erase any white spaces, duplicate
records, or formatting errors. This way you avoid hurting your analysis with
incorrect data.
 STAGES OF DATA PROCESS

 Analyze

With the help of various techniques such as statistical analysis, regressions,

neural networks, text analysis, and more, you can start analyzing and
manipulating your data to extract relevant conclusions. At this stage, you find
trends, correlations, variations, and patterns that can help you answer the
questions you first thought of in the identify stage. Various technologies in the
market assists researchers and average business users with the management of
their data. Some of them include business intelligence and visualization software,
predictive analytics, data mining, among others.
 STAGES OF DATA PROCESS

 Interprete

This stage is where the researcher comes up with courses of action based on the
findings. For example, here you would understand if your clients prefer
packaging that is red or green, plastic or paper, etc. Additionally, at this stage,
you can also find some limitations and work on them.
 TYPES OF DATA ANALYSIS

 Descriptive Analysis
Descriptive data analysis provides the “What happened?” when analyzing quantitative
data. It is the most basic and most common form of data analysis concerned with
describing, summarizing, and identifying patterns through calculations of existing data,
like mean, median, mode, percentage, frequency, and range.
Descriptive analysis is usually the baseline from which other data analysis begins.
However, as it is only concerned with statistical analysis and absolute numbers, it can’t
provide the reason or motivation for why and how those numbers developed.
 TYPES OF DATA ANALYSIS

 Inferential Analysis
Inferential analysis generalizes or hypothesizes about “What happened?” by comparing
statistics from groups within an entire population: the population of a country, existing
customer base, patients in a medical study, etc.
Inferential analysis is used widely in market research, to compare two variables in an
attempt to reach a conclusion: money spent by female customers vs. male or among
different age groups, for example. Or it can be used to survey a sample set of the
population in an attempt to extrapolate information about the entire population. In this
case it is necessary to properly calculate for a representative sample of the population.
 TYPES OF DATA ANALYSIS

 Diagnostic Analysis
Diagnostic analysis, also known as root cause analysis, aims to answer “Why did 'X' happen?”.
It uses insights from statistical analysis to attempt to understand the cause or reason behind
statistics, by identifying patterns or deviations within the data to answer for why.
Diagnostic analysis can be helpful to understand customer behavior, to find out which
marketing campaigns actually increase sales, for example. Or let’s say you notice a sudden
decrease in customer complaints: Why did this happen?
Perhaps you fired a certain employee or hired new ones. Maybe you have a new online
interface or added a particular product feature. Diagnostic analysis can help calculate the
correlation between these possible causes and existing data points.
 TYPES OF DATA ANALYSIS

 Predictive Analysis

Predictive analysis uses known data to postulate about future events. It is

concerned with “What is likely to happen.” Used in sales analysis, it often
combines demographic data and purchase data with other data points to predict
the actions of customers. For example, as the demographics of a certain area
change, this will affect the ability of certain businesses to exist there. Or as the
salary of a certain customer increases, theoretically, they will be able to buy more
of your products.
 TYPES OF DATA ANALYSIS

 Prescriptive Analysis
Prescriptive analysis is the most advanced form of analysis, as it combines all of your data and analytics,
then outputs a model prescription: What action to take. Prescriptive analysis works to analyze multiple
scenarios, predict the outcome of each, and decide which is the best course of action based on the
findings.
Artificial intelligence is an example of prescriptive analysis that’s at the cutting edge of data analysis. AI
allows for prescriptive analysis that can ingest and break down massive amounts of data and effectively
teach itself how to use the information and make its own informed decisions.
AI used to require huge computing power, making it difficult for businesses to implement. However,
with the rise of more advanced data analysis tools, there are many exciting options available.
DATA ANALYSIS TOOLS

 Data analysis tools make is easier for

users to process and manipulate
data, analyze the relationships and
correlations between data sets, and
it also helps to identify patterns and
trends for interpretation.
TOOLS OF DATA ANALYSIS

 MonkeyLearn – No-code machine learning platform that provides a full suite of text analysis tools and a
robust API. Easily build custom machine learning models in a point and click interface.
 KNIME: – Open-source platform for building advanced machine learning solutions, and visualizing data.
 RapidMiner – For data analytics teams that want to tackle challenging tasks and handle large amounts
of data.
 Microsoft Excel – Filter, organize, and visualize quantitative data. The perfect tool for performing simple
data analysis. Explore common functions and formulas for data analysis in Excel.
 Tableau – A powerful analytics and data visualization platform. Connect all your data and create
interactive dashboards that update in real-time.
 R – A free software environment for statistical computing and graphics. Learning R is relatively easy,
even if you don’t have a programming background.
 Python – The preferred programming language for machine learning. Use it to build data analysis
solutions for various use cases.