There are different categories of Data Analytics used for different purposes. The best type of data analytics for a company to rely on depends on their particular stage of development. There are 4 major types of data analytics categorised based on the phase of workflow and the kind of analysis required.
Predictive analytics is a commonly used category of data analytics to identify trends, correlations, and causation. As the name suggests, it tells what is likely to happen It is further broken down into predictive modelling and statistical modelling which go hand in hand. Despite its numerous advantages, predictive analytics requires careful treatment and continuous optimization.
Prescriptive analytics is to literally prescribe what action to take to eliminate a future problem or take full advantage of a promising trend with the help of AI and big data. It is further broken down into optimization and random testing.
Diagnostic data analytics is to examine data to understand cause and event. It gives in-depth insights into a particular problem. Drill-down, data discovery, data mining, and correlations are a few of the techniques that are implemented.
Descriptive analytics is treated as the backbone of reporting which addresses how many, when, where, and what questions. This is further categorised into two categories: ad hoc reporting and canned reports. Canned reports are designed previously and contain information around a given subject. Ad hoc reports usually aren’t scheduled but are more in-the-moment.
Descriptive and diagnostic analytics offer a reactive approach, predictive and prescriptive analytics enable proactiveness. Choose what works best for your business needs.