Data Analysis is a key business tool that helps make decisions based on numbers and facts. Data analysts work with data sets, find patterns in them and turn them into useful information. In this article, we will understand what data analysis is, what types of it exist, and what skills are needed to become a successful specialist in this field.
Data analysis is the process of collecting, processing and interpreting data to solve business problems. Companies use analytics to understand what's happening in their business, why it's happening, and what steps they can take to improve results.
Exists four main types of data analysis:
Descriptive Analytics – answers the question “What happened?” These can be simple reports, summaries and graphs that show the company's current performance.
Diagnostic Analytics – helps to understand “Why did this happen?” It uses comparisons, cause-and-effect relationships, and exploration of factors that influence the outcome.
Predictive Analytics – defines “What might happen in the future?” Based on the use of statistical modeling, machine learning, artificial intelligence.
Prescriptive Analytics – answers the question “What to do next?” This is the most sophisticated level of analysis, involving automatic recommendations based on data.
Imagine that you work in an online store. You can:
Compose report about sales for the month (descriptive analytics).
Find out why sales of a certain product have decreased (diagnostic analytics).
Forecast demand for the next month (predictive analytics).
Offer discounts or advertising to increase sales (prescriptive analytics).
Or take a household example - you are looking at how to reduce the amount of household waste produced in your family. You can:
Collect statistics and categorize the types of waste produced (descriptive analytics).
Find out why volumes are high in certain categories, such as plastic waste (diagnostic analytics).
Forecast volumes for the next period (predictive analytics).
Suggest changes in the goods consumed, purchasing behavior, or methods of partial or complete disposal (prescriptive analytics).
A data analyst is a specialist who:
✔️ Collects data (from CRM systems, databases, Excel files and other sources).
✔️ Cleans and processes them, removing errors and repetitions.
✔️ Analyzes patterns and identifies important metrics.
✔️ Creates reports and visualizationsto make data understandable for business.
✔️ Draws conclusions and makes recommendations based on the analysis.
It is important for a novice analyst to master basic tools:
Excel – convenient for basic analytics and working with tables
SQL – a structured database query language, needed for data retrieval
BI systems (Tableau, Power BI, Pivot) – help create interactive reports
Python and R – useful for automation and complex calculations
Understand how to work with data, what types of analysis there are and what questions they help solve.
These are the main tools of work. Excel will help at first with clarity and a fast feedback loop, and without SQL it is impossible to work with databases when processing larger data sets.
Affordable and attractive graphs are important for decision makers. Start with Painting or Power BI.
Analytics is not just numbers. You need to understand how a business works and what indicators are important to it. What activities stand behind and influence these numbers.
You can participate in case studies of real projects, do test assignments, or analyze open data (for example, Kaggle).
Data analysis is a powerful tool that helps you make decisions based on the collected data. A data analyst is not just a person who works with numbers, but a specialist who helps a company find hidden opportunities and optimize processes.
If you want to master this profession, start with the basics: learn SQL, Excel and BI tools, practice analyzing data and interpreting results. The main thing is practice! The more problems you solve, the faster you will master the profession.
If you want to dive deeper into data analysis and master the profession under the guidance of an experienced mentor, we invite you to individual online course with data analysis expert – Max. This is a great chance to gain practical skills, analyze real cases and learn how to apply analytics in business and life. Sign up and start your journey in the world of data today!