Analytics and Business Intelligence

Types of Analytics in Business Intelligence

• Descriptive Analytics

  • Describes past and present data.

  • Answers the question: What happened?

• Diagnostic Analytics

  • Explains reasons behind past events.

  • Answers the question: Why did this happen?

• Predictive Analytics

  • Focuses on forecasting future outcomes.

  • Answers the question: What is likely to happen?

• Prescriptive Analytics

  • Suggests best actions to achieve specific goals.

  • Answers the question: What should we do?

Summary of Analysis Techniques

• Descriptive vs Predictive

  • Descriptive: Looks at the present/past.

  • Predictive: Anticipates future events.

Application Examples

• Predictive Analytics: Forecasts like election outcomes or future behavior trends.

• Descriptive Analytics: Current market conditions or performance metrics.

• Diagnostic Analytics: Investigates causes of changes in market performance.

• Prescriptive Analytics: Evaluates strategies to maximize profit.