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Emmanuel C. Onyema
Emmanuel C. Onyema

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A Beginner's Guide to Data Analytics: Understanding the Fundamentals

In today's data-driven world, data encompasses a wide range of data types and sources. Businesses, organizations, and various industries of all sizes rely on data as a key to making informed and sound business decisions, uncovering hidden insights, generating higher revenue, and driving innovation. Therefore, this article will unravel the fundamentals of data analytics, paving the way for your journey into this exciting field.

What is Data Analytics?

Data analytics refers to the entire process through which a data analyst collects data, examines it, refines and standardizes it, analyzes it, and interprets it for the purposes of uncovering patterns, drawing conclusions, improving processes, identifying opportunities and trends, launching new products, providing great customer service, and making sound, thoughtful decisions. The list literally goes on.

Why is Data Analytics Important?

The importance and benefits of data analytics are numerous and extend across several sectors, industries, and use cases, some of which include, but are not limited to:

Informed Decision-Making: Data analytics empowers individuals and organizations to enhance their marketing strategy, and make decisions based on evidence and facts, rather than gut feelings, intuition or guesswork.

Business Growth: It helps businesses understand customer behavior, optimize operations, and gain a competitive edge.

Problem Solving: Data analytics identifies issues and inefficiencies, allowing for effective remedies.

Operational Efficiency: Businesses may discover problems in their prior performance and try to improve them with a full report of their past performance.

What are the Processes of Data Analytics?

Data analytics involves a series of interconnected processes that transform raw data into valuable insights. These processes provide a structured approach to understanding, analyzing, and deriving meaningful information from data. Here are the key stages in the data analytics process:

  • Data Collection.
  • Data Cleaning and Preparation.
  • Data Exploration (Exploratory Data Analysis - EDA).
  • Data Analysis.
  • Interpreting Results.
  • Data Visualization.
  • Communication and Reporting.

The data analytics process is iterative, which means that when new data becomes available or issues emerge, the process is examined to provide new insights and enhance decision-making on a constant basis. It is a dynamic field that demands both technological competence and subject understanding to optimize the value generated from data.

What are the Types of Data Analytics?

Data analytics encompasses various types, each serving different purposes and focusing on specific aspects of data analysis. The four primary types of data analytics are:

Descriptive Analytics: Descriptive analytics aims to summarize historical data to provide insights into what has happened in the past. It focuses on understanding and characterizing data.

Common techniques include calculating summary statistics (mean, median, standard deviation), creating data visualizations (bar charts, histograms, scatter plots), and generating reports and dashboards.

Use Cases: Descriptive analytics is used for tracking key performance indicators (KPIs), monitoring business metrics, and providing a snapshot of the current state of affairs.

Diagnostic Analytics: Diagnostic analytics seeks to answer "why" certain events or trends occurred by examining historical data. It aims to identify the root causes of specific outcomes.

This type of analysis involves advanced exploration techniques such as regression analysis, root cause analysis, and correlation analysis. It helps uncover relationships and dependencies in data.

Use Cases: Diagnostic analytics is valuable for identifying the reasons behind changes in performance metrics or anomalies, enabling organizations to address underlying issues.

Predictive Analytics: Predictive analytics uses historical data to make predictions about future events or trends. It focuses on forecasting and understanding how variables will behave over time.

Machine learning algorithms, time series analysis, and statistical modeling are commonly used in predictive analytics. These techniques enable the creation of predictive models to make forecasts.

Use Cases: Predictive analytics is applied in various domains, including sales forecasting, demand planning, fraud detection, and risk assessment. It helps organizations make proactive decisions.

Prescriptive Analytics: Prescriptive analytics goes beyond prediction by suggesting the best course of action to optimize a desired outcome. It provides actionable recommendations based on predictive models.

Prescriptive analytics leverages optimization algorithms, decision trees, and simulation modeling to identify the most favorable actions or interventions.

Use Cases: Organizations use prescriptive analytics to optimize supply chain operations, make personalized recommendations to customers, and determine optimal pricing strategies.

It's worth noting that these types of data analytics are not mutually exclusive; they often complement each other in a data analysis workflow. For example, diagnostic analytics may help uncover the causes of a problem, while predictive analytics can be used to forecast future occurrences of the issue, and prescriptive analytics can provide recommendations on how to mitigate or exploit the situation.

How to Become a Data Analyst?

Becoming a data analyst involves a combination of education, technical and soft skill development, and practical experience. While some start with complementary degrees in math, data science, or other related disciplines, here's a guide on how to become a data analyst with or without a degree:

  • Get a foundational knowledge.
  • Develop your technical skills.
  • Work on projects.
  • Learn how to present your findings.
  • Develop a portfolio showcasing your data analytics projects.
  • Apply for entry-level data analyst jobs
  • Consider certification or an advanced degree.
  • Attend data-related meetups, conferences, and workshops to network with professionals in the field.
  • Stay up-to-date with the latest trends and technologies in data analysis through online courses, books, and professional development opportunities.

Remember that becoming a data analyst is a journey that requires continuous learning and adaptation. Building a strong foundation of technical and analytical skills, along with practical experience, will pave the way for a successful career in data analysis.

What Skills do I need to Become a Data Analyst?

To become a successful data analyst, data analysts may need a combination of technical, analytical, and soft skills, depending on the specific project, industry, and organization they work in. Here's a list of some skills required for the role:

1. Techincal Skills

Programming languages: Python / R

Data Visualization: Tableau / POWER BI / Matplotlib, Seaborn.

Data Cleaning, Transformation and Manipulation: SQL / Excel

Statistical Analysis: SPSS, SAS, and STATA

Machine Learning and Predictive Analytics

Version Control and Documentation

Data Storage and Database Management

2. Analytical Skills:

Critical Thinking: The ability to think critically and approach problems analytically, breaking them down into manageable components.

Problem-Solving: Strong problem-solving skills to identify issues, formulate hypotheses, and devise effective solutions.

Data Interpretation: The skill to interpret data and draw meaningful insights, recognizing patterns and trends within datasets.

Quantitative Analysis: Proficiency in quantitative analysis, including quantitative reasoning and mathematical modeling.

3. Soft Skills:


Attention to Detail

Time Management



4. Domain Knowledge:

Domain Expertise: Depending on the industry you work in, having domain knowledge (e.g., finance, healthcare, marketing) can be valuable for understanding context and making data-driven decisions.

5. Business Acumen:

Business Understanding: The ability to translate data insights into actionable business recommendations and align data analysis with organizational goals.
As the area of data analytics evolves, data analysts must often adapt to new tools and technologies in order to remain competitive and give relevant insights. As a result, adjust your skill development to the requirements of the specific data analyst profession you want to pursue. Having a solid foundation in these abilities and constantly strengthening them will help you flourish in the field of data analytics.


Online Courses and Learning Platforms:





Blogs and Websites:

Towards Data Science: A Medium publication with articles, tutorials, and insights on data science, data analysis, and machine learning.

FlowingData: Authored by statistician Nathan Yau, this blog covers data visualization and statistical analysis techniques.

YouTube Channels and Video Courses:

StatQuest with Josh Starmer: Offers clear and concise explanations of statistical concepts used in data analysis.

Data School: Provides video tutorials on Python, pandas, scikit-learn, and other data analysis tools.

AlexTheAnalyst: Provides video tutorials on the basic things you need as an analyst. I particularly recommend his free data analyst playlist bootcamp


Stack Overflow

Reddit's r/datascience


Google Data Analytics Professional Certificate

IBM Data Analyst Professtional Certificate

Remember that the best resources may differ depending on your individual data analytics aims and interests. To consistently expand your abilities as a data analyst, it's a good idea to mix formal courses with practical projects and continuing learning through books, blogs, and online groups.

Thank you

Thank you for taking the time to explore this article on Data Analytics. I hope you found it informative and insightful. If you have any questions, feedback, or would like to continue the conversation, I'd love to connect with you.

Feel free to reach out to me on LinkedIn, or Twitter if you'd like to stay updated on similar topics or if you have any professional inquiries. I'm always eager to engage with fellow enthusiasts in the field. Your thoughts and insights are valuable to me, and I look forward to connecting with you soon. Until then, happy reading and stay curious!

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