Data analysis is a major aspect of any business or organization. It is the activity of analyzing large chunks of data to test theories and guide decisions, a key component of the data analytics field. Chances are you’ve watched a tennis match where players were overruled. The play is reviewed using the Hawk-Eye system, and the situation is clarified. Data analysis works in the same way. According to Eric Chapson, founder of Phalanx Analysis Group, “Data is the foundation of the Digital Age. Statistical advice should be obtained at every stage of the product’s development, from its initial planning to the way it is positioned in the market once launched”.
Is there anything else you should know about data analytics? Here are some interesting things to note.
Data analysis brings about many benefits
Business organizations are the ones that benefit from the collection and interpretation of significant amounts of data. The reason why data analytics is so important in business is obvious. The information extracted is used to enhance management and business operations. Companies get relevant insight, leading to the ability to predict trends and behaviors and make effective decisions. Other benefits of data analysis include:
· Cost savings – smart and efficient technology is capable of stringing large amounts of data.
· New products and services – understanding customer’s needs and optimizing their experience.
The process of extracting, gathering, and modeling raw data is useful for corporations, especially those who are looking to gain a competitive advantage.
Data analysis isn’t exactly new
The foundation of big data was laid a long time ago, so you can’t argue that it’s a new age invention. The fact is that people have been storing and analyzing data since the dawn of time. For example, Paleolithic tribes used to monitor their activities by marking notches onto sticks. However, information storage systems didn’t appear until the 1960s, when statistics started to be carried out. Last but not least, the term “Big Data” emerged in 2007. How about the present? Nowadays, you can get infrastructure for big data analysis at a reasonable price. What is more, everything takes place in the cloud.
Collecting data is difficult
Although it may sound simple, it is not easy to collect large pieces of information. It is necessary to figure out what kind of data has to be obtained from the resources at hand. This means that you have to determine what problems you have. For example, if you have a lot of headcount, you need to find a way to reduce the staff without compromising quality. The actual process of collecting data isn’t hard. You can make observations or conduct interviews, or even use computer tools. However, can we be sure that the information is correct? If the information is corrupt or inaccurate, you can’t do anything with it.
As you can see, there are both benefits and challenges to data analysis. Nevertheless, data analytics remains a valuable way for enterprises to get the information they need to make decisions. Information volumes are just too large sometimes, and it can’t hurt to condense and summarize it through the use of data tools.
Shruti Gupta is a writer, digital marketer and outreaching expert .She writes about technology, startups & other niches. She has contributed to a number of famous websites like Thenextweb, Deccanchronicle and Crazyegg. Stay tuned with her at:@shruti_gupta01 or via Skype : shrutigupta2811
