Newsletter 04/2018 - Statistics in Decision Making, Article 4
2frame Analytics' newsletters are back!
This is the fourth in a series of several articles on Statistics in Decision Making: What is Analytics?
This question and similar are the ones we hear the most when introducing 2frame Analytics to new companies.
For this Newsletter, we found an interesting definition in the book "Competing on Analytics, Updated with a New Introduction: The New Science of Winning," by Thomas H. Davenport and Jeanne G. Harris.
The definition below is not extensive and represents a brief overview of what 2frame Analytics does for its clients during its projects.
Analytics is the extensive use of data, statistical analysis, quantitative analysis, mathematics, computer science, explanatory models, predictive models, and fact-based management to guide decisions and actions.
There are several types of analytics, and they can be used in an integrated way.
Descriptive Analytics (a.k.a. Business Intelligence [BI] or performance reports) uses current and/or historical, internal and external data from several sources, to alert, explore, and report.
Examples: BI reports that exist in most companies nowadays, which use software available in the market (from Excel to even Tableau, Microstrategy, Cognos).
Predictive/Prescriptive Analytics uses quantitative techniques (e.g., propensity, segmentation, network analysis, econometric forecasting, optimization) and quantitative technologies (such as models, rule-based systems, machine learning, recommendation systems) that use past data to predict the future and to specify optimal behaviors and actions.
Autonomous Analytics employs artificial intelligence or cognitive technologies (like machine learning) to create and perfect mechanisms without human hypotheses and less involvement of human analysts.
What about in your business, do you already use Analytics for your decision making?
Read more about the subject of this Newsletter:
1) "Competing on Analytics, Updated, with a New Introduction: The New Science of Winning", Thomas H. Davenport and Jeanne G. Harris, Harvard Business Review Press; Revised edition, 2017.
Originally posted on 10/10/2018