MIS – DIFFERENT TYPES OF ANALYTICS

Date : 09-07-2019 Rishiraj Sengupta

Div A,
A035

Different types of Analytics used in the industry

1. Descriptive analytics : A preparatory stage in data processing that summarises data from
past periods to provide insights and prepare the gathered data for future analysis .
Descriptive Analytics Examples
For instance, a hotel chain would use descriptive analytics to determine the level of demand
for new VIP suites in a hotel. Similarly, an insurance company can use descriptive data
analytics to see what services are the most popular in a given season, while an online retailer
can find out the least popular products from new arrivals.

2. Diagnostic Analytics: A stage where the information gathered during descriptive analysis
is compared against other metrics to find out why something happened.
Diagnostic Analytics Examples
With diagnostic analytics, a hotel chain would compare the demand for VIP suites in
different regions or hotels in a region, while the insurance company would, for example, get
insights into what age group uses dental treatment the most in the target area. Meanwhile, an
online retail store might use diagnostic analytics to discern what regions ordered a particular
product from new arrivals more.
3. Predictive analysis: A data analysis type that allows companies to forecast problems that
might occur in future or a trend and how would be unfolding.
Predictive Analytics Examples
With this type of analysis, a hotel could predict how much a new promising guest service
would bring in revenue in a given region. A retailer could use in-depth data on their
customers and other metrics to forecast a reaction on a new store type.

Predictive analysis involves advanced tools and technologies and should be based on a big
amount of solid data (internal and external) to yield a reliable result. 

4. Prescriptive analysis: A data analysis type that uses advanced technology heavily to find
the best solution based on data provided from predictive analytics. Thus, prescriptive
analytics would determine what a company could do with a problem or trend foreseen by
predictive analytics. Like predictive analytics, prescriptive analysis needs its own business
logic and algorithms.

Prescriptive Analytics Examples

From one side, prescriptive analytics techniques can be used to gain highly rich insights in
customer behaviour across industries. On the other, machine learning algorithms can be
trained to analyse stocks markets and automate human decision making by presenting
 MIS – DIFFERENT TYPES OF ANALYTICS

decisions based on large amounts internal and external data. In any case, prescriptive
analytics are a costly investment