Analytics is the discovery, interpretation, and communication of meaningful patterns in data. Organizations may apply analytics to business data to describe, predict, and improve business performance. This section may be confusing conjoin bitcoin mining unclear to readers.
In particular, it is still not clear what the difference between analytics and analysis is. Please help us clarify the section . Analytics focuses on why it happened and what will happen next. There is extensive use of computer skills, mathematics and statistics, the use of descriptive techniques and predictive models to gain valuable knowledge from data. The insights from data are used to recommend action or to guide decision making rooted in business context. Marketing has evolved from a creative process into a highly data-driven process.
Marketing organizations use analytics to determine the outcomes of campaigns or efforts and to guide decisions for investment and consumer targeting. Demographic studies, customer segmentation, conjoint analysis and other techniques allow marketers to use large amounts of consumer purchase, survey and panel data to understand and communicate marketing strategy. Web analytics allows marketers to collect session-level information about interactions on a website using an operation called sessionization. Google Analytics is an example of a popular free analytics tool that marketers use for this purpose.
Analysis techniques frequently used in marketing include marketing mix modeling, pricing and promotion analyses, sales force optimization and customer analytics e. Web analytics and optimization of web sites and online campaigns now frequently work hand in hand with the more traditional marketing analysis techniques. People Analytics is using behavioral data to understand how people work and change how companies are managed. People analytics is also known as workforce analytics, HR analytics, talent analytics, people insights, talent insights, colleague insights, human capital analytics, and HRIS analytics. HR analytics is the application of analytics to help companies manage human resources. However, there are key differences between people analytics and HR analytics. People Analytics looks at the work and its social organization.
Ben Waber, MIT Media Lab Ph. A common application of business analytics is portfolio analysis. In this, a bank or lending agency has a collection of accounts of varying value and risk. The least risk loan may be to the very wealthy, but there are a very limited number of wealthy people. On the other hand, there are many poor that can be lent to, but at greater risk. Some balance must be struck that maximizes return and minimizes risk.