what is data analytics 
the term data analytics refers to the science of analyzing raw data to make conclusions about information many of the techniques and processes of data analytics have been automated into mechanical processes and algorithms that work over raw data for human consumption data analytics can be used by different entities such as businesses to optimize their performance and maximize their profits this is done by using software and other tools to gather and analyze raw data understanding data analyticsdata analytics is a broad term that encompasses many diverse types of data analysis any type of information can be subjected to data analytics techniques to get insight that can be used to improve things data analytics techniques can reveal trends and metrics that would otherwise be lost in the mass of information this information can then be used to optimize processes to increase the overall efficiency of a business or system for example manufacturing companies often record the runtime downtime and work queue for various machines and then analyze the data to better plan workloads so the machines operate closer to peak capacity data analytics can do much more than point out bottlenecks in production gaming companies use data analytics to set reward schedules for players that keep the majority of players active in the game content companies use many of the same data analytics to keep you clicking watching or re organizing content to get another view or another click data analytics is important because it helps businesses optimize their performances implementing it into the business model means companies can help reduce costs by identifying more efficient ways of doing business a company can also use data analytics to make better business decisions and help analyze customer trends and satisfaction which can lead to new and better products and services steps in data analysisthe process involved in data analysis involves several steps types of data analyticsdata analytics is broken down into four basic types data analytics underpins many quality control systems in the financial world including the ever popular six sigma program it s nearly impossible to optimize something if you aren t properly measuring it whether it s your weight or the number of defects per million in a production line the sectors that have adopted the use of data analytics include the travel and hospitality industry where turnarounds can be quick this industry can collect customer data and figure out where problems if any lie and how to fix them healthcare combines the use of high volumes of structured and unstructured data and uses data analytics to make quick decisions similarly the retail industry uses copious amounts of data to meet the ever changing demands of shoppers the information that retailers collect and analyze can help them identify trends recommend products and increase profits the average total pay for a data analyst in the united states was just over 90 000 in april 2024 1 although data analytics doesn t have a separate listing under the bureau of labor statistics s bls handbook the responsibilities fall under the category of data scientist the agency estimates as many as 59 400 jobs created in this field between 2022 and 2032 at a rate of 35 which is much faster than average 2data analytics techniquesdata analysts can use several analytical methods and techniques to process data and extract information some of the most popular methods include data analytics toolsdata analytics has rapidly evolved in technological capabilities in addition to a broad range of mathematical and statistical approaches to crunching numbers data analysts have a broad range of software tools to help acquire data store information process data and report findings data analytics has always had loose ties to spreadsheets and microsoft excel data analysts also often interact with raw programming languages to transform and manipulate databases data analysts also have help when reporting or communicating findings both tableau and power bi are data visualization and analysis tools used to compile information perform data analytics and distribute results via dashboards and reports other tools are also emerging to assist data analysts sas is an analytics platform that can assist with data mining apache spark is an open source platform useful for processing large sets of data data analysts have a broad range of technological capabilities to further enhance the value they deliver to their company the role of data analyticsdata analytics can enhance operations efficiency and performance in numerous industries by shining a spotlight on patterns implementing these techniques can give companies and businesses a competitive edge let s take a look at the process of data analysis divided into four basic steps as the name suggests this step involves collecting or gathering data and information from across a broad spectrum of sources various forms of information are then recreated into the same format so they can eventually be analyzed the process can take a good bit of time more than any other step data requires a database to contain manage and provide access to the information tht has been gathered the next step in data analytics is therefore the creation of such a database to manage the information while some people or organizations may store data in microsoft excel spreadsheets excel is limited for this purpose and is more a tool for basic analysis and calculations such as in finance relational databases are a much better option than excel for data storage they allow for the storage of much greater volumes of data and allow for efficient access the relational structure allows for tables to easily be used together structured query language known by its initials sql is the computer language used to work on and query from relational databases created in 1979 sql allows for easy interaction with relational databases enabling datasets to be queried built and analysized 3the third step is statistical analysis it involves the interpretation of the gathered and stored data into models that will hopefully reveal trends that can be used to interpret future data this is achieved through open source programming languages such as python more specific tools for data analytics like r can be used for statistical analysis or graphical modeling the results of the data analytics process are meant to be shared the final step is formatting the data so it s accessible to and understandable by others particularly those individuals within a company who are responsible for growth analysis efficiency and operations having access can be beneficial to shareholders as well importance and uses of data analyticsdata analytics provide a critical component of a business s probability of success gathering sorting analyzing and presenting information can significantly enhance and benefit society particularly in fields such as healthcare and crime prevention but the uses of data analytics can be equally beneficial for small enterprises and startups that are looking for an edge over the business next door albeit on a smaller scale 