Hello, this time I make the analogy of the patient (business company) and the doctor (data analyst) to explain you, the 4 types of data analysis. Please read and share to your family or friends.
Don’t forget: Before starting any data analysis case, first choose the type(s) of data analysis you want to do.
Data analysis is the process of cleaning, modifying and processing raw data, and extracting actionable and relevant information that helps businesses make informed decisions.
The process helps to reduce the risks inherent in decision making by providing useful information and statistics, often presented in the form of graphs, images, tables.
The patient (the company) encounters many dysfunctions in its general state. He has tried to find remedies on his own but the pains do not go away. These pains are multiple: difficulties in selling his products, not understanding the customers, very low turnover, lack of customer engagement, ineffective marketing, loss of customers.
The patient (the company) then decides to consult a doctor (data analyst). The latter tells him: There are 4 types of remedies:
1- Statistical analysis
2- Diagnostic analysis
3- Predictive analysis
4- Prescriptive analysis
The patient curiously asks him to explain the 4 remedies (types of data analysis) first, then he will know which one or ones to take to get better.
The doctor accepts and asks him to listen carefully because many patients (companies) get lost and sometimes even die in the course of treatment (bankruptcy of the company).
1- First of all as a doctor (data analyst) I explain you the first remedy which is statistical analysis. It answers the question: What happened?
It covers the collection, analysis, modelling, interpretation and presentation of data using dashboards. It is composed of 2 subcategories: descriptive analysis and inferential analysis.
2- Next, you have dear patient (company), a diagnostic analysis that answers the question: Why did this happen?
With the knowledge gained through statistical analysis, you use diagnostic analysis to identify similar patterns that have existed in the past so that they can be used to solve current challenges.
3- Finally you have a predictive analysis that answers the question: What is more likely to happen?
Using patterns found in older data in addition to current events to predict future events.
Patient: Uh wait! You mentioned 4 types of data analysis when you only mentioned 3.
Doctor: you are right, know that the 4th type is prescriptive analysis. It is the combination of the other 3 types of data analysis.
Doctor: Never start a data analysis without having in mind the type(s) of analysis you want to perform. Choose objectively based on the business problem you want to solve.
Patient: thank you very much, thanks to you I understand the 4 remedies (types of data analysis) better. I will contact you to start a proper treatment.
😂🙏🏿 That ends this analogy. Sorry I created the story on a whim just to easily describe the 4 types of data analysis to you.
There are others too. But these 4 are very important to know for those starting out in data analysis. A data analyst is crucial in a company for strategic decision making.
I hope this article was interesting. Please share it with your family and friends.
Papa Ibra Diagne — Data Scientist & Business Intelligence Analyst
Founder of Shakur Analysis
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