The Basics of Data Analysis
Data analysis is the process of transforming raw data into insights that help you make better business decisions and operations. It starts by identifying the issue you want to solve, gathering the relevant data, and then analyzing it using various techniques of statistical analysis to find the root patterns or connections. In most cases, the result is greater efficiency or profit.
It is essential to first establish your goal. This could be as easy as setting a specific sales target or as complex as predicting the likelihood of customer churn. Then, you’ll need to decide on the type of data analysis will get you there. Diagnostic data analysis attempts to find known relationships between data points to explain the observations. Predictive modeling however utilizes past data to predict the outcome.
The next step is to collect the data, which can include collecting it from internal sources such as CRM software, internal archives and reports. It may also involve importing external data, which involves dealing with data from various sources in a variety of formats. Once you have your data you can begin preparing it for analyzation by cleaning, organizing and transforming it as necessary.
After the data has been examined, you must create a report that summarizes the results and presents them in a straightforward format for your readers. This may require you to write in a way that is accessible to lay people, or collaborate with a statistician in order to translate technical terms and procedures into usable information.