It is quite common to use the words Analysis and Analytics usage inter changingly. But there are some subtle differences between these two.
Analysis is the discovery of insights in to the data. Most of the time it uses statistical techniques. These insights then are communicated to various stakeholders along with recommendation.
Analytics on the other hand consists of entire cycle of insights generation, communication and recommendation. From the definition, analysis is the part of analytics.
Business analytics is also the skills and technologies. It focuses on developing insights from the data and validating it. It helps in business planning and data based decision making. Extensive usage of statistics and predictive modeling techniques are evident in business analytics. Computer programming is also an essential part of the Analytics. This can run on human intervention and input for fully automated decisions.
Analytics is especially valuable in areas rich with information. With the current scenario around the world on the generation of data we discussed in the earlier post, more the analytics uses, more the benefits the organization can reap.
Domains within Analytics
Analytics consists of entire methodology of Data Analyses, Insights generation and Communication. This can be used in any of the domains where data is available. Even though I am naming few here, there are endless list of possibilities. Name an industry and there is an opportunity up for grabs.
- Retail sales analytics
- Risk & Credit analytics
- Marketing analytics
- Behavioral analytics
- Collections analytics
- Fraud analytics
- Pricing analytics
- Supply Chain analytics
- Cohort Analytics
- Web analytics
Analytics as an industry is growing at a rapid pace of 35% CAGR. There are many big names in the industry. In fact it is assumed there will be shortage of about 2,000,000 people with analytics knowledge by as early as 2017. It is the next big thing which is happening around the world. Umpteen studies are happening in this field. The skills needed are Statistics, knowledge of predictive analytics. the Major thing needed is the statistical thinking.