Data analysis is an essential tool for companies that want to make precise investments, define actions focused on results, achieve strategic planning goals and improve their performance. In this article we’ll summarise a little about data analysis, its types and the benefits of its application.

What is data analysis?

Data analysis is the process of transforming qualitative and quantitative data into useful information for the business. This procedure turns numbers and elements of the operation into insights for appropriate and agile decision making. With this tool, the company uses information and data to guide strategies, refute or confirm hypotheses, create opportunities, define actions, solve problems and maximise results.

Purpose of data analysis

Data analysis transforms raw material (scattered information) into decisionmaking aids. Its main objective is to be an ally of management in decision-making and the development of strategic planning.

Types of data analysis

Descriptive Analysis

• It provides insights into the company’s current status and makes it easier to monitor the business in real time. In this way, it supports decisions that are necessary for the moment – and not for future projects.

Predictive Analysis

• In this analysis model, the company makes projections and, by improving its understanding of future scenarios, it can make better decisions. In Predictive Analysis, data is used to determine patterns and identify trends.

Prescriptive Analysis

• This is used to make projections, define strategies and estimate the possible success of an action. It is also used to assess the consequences of decisions to be made, reducing exposure to negative scenarios.

Diagnostic Analysis

• Diagnostic analysis investigates cause and effect. In this way, it helps to build behaviours, define marketing actions, sales strategies and develop products or services tailored to customer needs.

What are the benefits of analysing data?

Information is worth gold and in the face of rapid changes in the market, analysing data guarantees a series of benefits for the company, from cost reduction, decision arguments, visibility on market trends, risk management, understanding customer needs and what they are looking for, among others!

Want to know more? Access our complete e-book on data analysis and see how it can be a powerful tool for your company’s success!