What Do You Mean by Data Analytics? A Beginner-Friendly Guide
What Do You Mean by Data Analytics?
Data analytics is the science of analyzing raw data to make informed decisions. It helps organizations uncover patterns, trends, and insights that lead to better strategies — from marketing to operations and everything in between.
Whether you’re curious about becoming a data analyst or just want to understand how companies use data, this guide has you covered.
What Are the 4 Types of Data Analytics?
There are four core types of data analytics:
- Descriptive Analytics – What happened? (e.g., Monthly sales reports)
- Diagnostic Analytics – Why did it happen? (e.g., Sales dropped due to weather)
- Predictive Analytics – What could happen next? (e.g., Sales forecasts)
- Prescriptive Analytics – What should we do? (e.g., Automated pricing suggestions)
Read more: IBM – Four Types of Analytics
What Do You Mean by Data Analysis?
Data analysis refers to the process within data analytics — collecting, cleaning, interpreting, and presenting data in a meaningful way. It helps businesses reduce risks, improve operations, and identify opportunities.
What Are the Basics of Data Analytics?
To start with data analytics, you need to understand:
- Data collection (from websites, apps, sensors, etc.)
- Data cleaning (removing errors or duplicates)
- Statistical analysis
- Data visualization (charts, dashboards)
- Reporting tools (like Excel, Google Data Studio, or Power BI)
What Is Analytics in Simple Words?
In simple terms, analytics is the art of turning numbers into decisions.
Imagine this: A pizza shop tracks sales and finds that more orders come in on rainy Fridays. That’s data analytics — observing a pattern and making smarter choices (like offering discounts on rainy Fridays!).
What Does a Data Analyst Do?
A data analyst:
- Gathers and organizes data
- Runs statistical tests and reports
- Builds visualizations (charts, graphs)
- Helps businesses make evidence-based decisions
They often use tools like:
- Excel / Google Sheets
- SQL
- Python or R
- Tableau / Looker / Power BI
Related: Coursera – What Does a Data Analyst Do?
What Is an Example of Data Analysis?
Example: A retail store reviews their sales data and notices that red shirts sell better in summer. They increase summer stock for red shirts, boosting revenue. That’s data analysis in action!
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About the Author
Muhammad Hamid Nazir
Co-Founder & CTO, Ecom Pro Support Ltd
With over a decade of experience in business intelligence, data automation, and cloud solutions, Hamid helps brands and agencies unlock powerful insights through customized dashboards and real-time analytics tools.
