Our chances of success increase the faster we can process valuable information.
This is especially true in business, where the ability to make quick, informed decisions can mean the difference between a thriving company and one that quickly falls behind the competition.
But what if the information we need to make those decisions isn’t readily available? What if it’s buried in mountains of data?
Analytics can help you sift through that data and find the nuggets of information that can help you make better decisions. But not all analytics are created equal. Some are more effective than others at helping you quickly understand complex data sets.
Here are four types of analytics that can help you make quick, informed decisions:
- Descriptive Analytics – answer the question, “What happened?” They help us understand what has happened in the past and can be used to identify trends.
- Diagnostic Analytics – answer the question, “Why did it happen?” They help us understand why something happened and can be used to identify root causes.
- Predictive Analytics – answer the question, “What will happen?” They help us understand what is likely to happen in the future and can be used to make decisions that will improve outcomes.
- Prescriptive Analytics – analytics answer the question, “What should we do?” They help us understand what the best course of action is and can be used to make decisions that will optimize results.
Not all analytics are equally effective at helping you make quick, informed decisions. Descriptive, diagnostic, predictive, and prescriptive analytics can all play a role in helping you understand complex data sets and make better decisions.
Which type of analytics do you find most helpful in making quick, informed decisions?
