Data Science and Analytics Consulting
The digital revolution is becoming more popular in the consulting industry. The result is a lot of opportunities available to enhance the experience of the clients. Despite this, consultants have to gain new knowledge to remain ahead. There has been a global soar in how companies spend on analytics consulting. Investment is between spending on external consultants and creating capabilities in-house.
Data analytics is a method of extracting and drawing conclusions from data to make better decisions. This technology is fast rising. It uses artificial intelligence, statistics, and advanced market knowledge. Users gather this data to figure out essential patterns in large sets of data. Deploying smart analytics provides excellent insights into the performance metrics of a company. It also shows the complicated changes taking place there.
Types of Data Analytics
Generally, there are four types of data analytics. They are:
1. Descriptive Analytics
Descriptive analytics provides expository information. It answers the fundamental questions of what, who, where, when, and how many. It is not possible to have dashboards and Business Intelligence tools without it, because it is the backbone of reporting. We can further divide Descriptive Analytics into two groups: canned reports and ad hoc reporting. Canned reports contain information about a particular subject. An example is a monthly report providing information on ad performance. Ad hoc reporting is usually not scheduled. It is essential for getting better information about a particular issue. You can do this through social media by viewing the people that have interacted with your page. It also helps you get other demographic data. Ad hoc reporting is hypersensitive, and it provides a bigger picture of your audience.
2. Diagnostic Analytics
Diagnostic analytics answer the question of why something happened. It measures historical data against other kinds of data. A diagnostic analysis makes you drill down. It helps you to locate dependencies and find out patterns. Businesses make use of this analysis to get in-depth knowledge of a specific problem. Organizations need to have detailed data at all times. Otherwise, the collection of data may appear to be single for each challenge and consume more time. Diagnostic analytics gives you alerts before a potential issue arises. For example, it lets you know of employees who put in fewer working hours than they should.
3. Predictive Analytics
Predictive Analytics gives you information on what is likely to happen in the future. It makes use of the discoveries of both descriptive and diagnostic analytics. It helps you to discover clusters, tendencies, and exceptions. You can then predict trends likely to take place in the future. Thus, predictive analytics is a crucial forecasting tool. Despite its many advantages, forecasting only provides an estimate. Its accuracy depends on the quality of the data. Thus, it requires regular optimization and careful treatment.
4. Prescriptive Analytics
This type of analytics prescribes the action to take to prevent any future issues. It also makes use of all promising trends. This type of analytics is where big data and artificial intelligence come into play. Statistical modeling deals with assessing situations to prove or disprove a hypothesis. AI deals with predicting potential outcomes based on many variables.
Data science and analytics consulting are essential to all businesses. It can help them in creating new products. It also makes them more efficient for better performance and enhances the customer experience. It provides information for better decision-making and detects challenges and opportunities. It makes forecasts that can reduce labor and cost, thereby saving time.