Data analytics help businesses optimize their performances. Implementing it into the business model means companies can help reduce costs by identifying more efficient ways of doing business and by storing large amounts of data. A company can also use data analytics to make better business decisions (DA) and help analyse customer trends and satisfaction, which can lead to new and better products and services.
There are four main type of data analytics. Descriptive analytics describes what has happened over a given period of time. Diagnostic analytics focuses more on why something happened. Predictive analytics moves to what is likely going to happen in the near future. Finally, prescriptive analytics suggests a course of action.
Decision analysis (DA) is a form of decision-making that involves identifying and assessing all aspects of a decision, and taking actions based on the decision that produces the most favourable outcome.The goal of decision analysis is to ensure that decisions are made with all the relevant information and options available. As a form of decision-making, the fundamentals of decision analysis can be used to solve a multitude of problems, from complex business issues to simple everyday problems.Decision analysis allows corporations to evaluate and model the potential outcomes of various decisions to determine the correct course of action. To be effective, the business needs to understand multiple aspects of a problem to result in a well-informed decision.The analysis entails understanding various goals, outcomes, and uncertainties involved, including the use of probabilities to measure the expected outcome of various decisions.