Advanced Data Analytics: Techniques And Applications
Data analytics has become an indispensable tool in today’s business world. With the exponential growth of data, organizations are leveraging advanced techniques to extract valuable insights and drive informed decision-making.
Let’s get into some of the most popular Advanced Data Analytics Techniques used by businesses and their applications. This will help you choose a certificate in Business Analytics through which you can learn about data analytics.
Table of Contents
Cohort analysis plays a crucial role in optimizing promotional and advertising campaigns. It helps determine the optimal timing for sending reminders to maximize consumer interest.
The benefits of cohort analysis for businesses include:
- By improving customer retention, cohort analysis enhances the overall revenue earned from customers throughout their association with the business.
- Identifying loyal customers through cohort analysis enables targeted approaches to encourage their continued association with the business.
Cohort analysis simplifies the evaluation of new product designs by comparing the conversion rates of cohorts that have interacted with the new design versus those that have not.
Predictive analysis uses data mining, machine learning, and statistical models to predict future events accurately. It has gained popularity due to its ability to provide valuable insights for business planning.
Here’s how predictive analysis enhances business performance:
- Predictive analysis helps anticipate consumer responses to product changes, enabling businesses to attract and retain customers effectively.
- By accurately managing resources like inventory and staffing, predictive analysis improves operational efficiency and reduces costs.
- Behavioural predictive analytics identifies anomalies and patterns in real-time, aiding in fraud detection and addressing potential security threats.
- Predictive analysis assesses a buyer’s creditworthiness, predicting their payment reliability and reducing financial risks for businesses.
Cluster analysis is mainly used for categorizing data. It groups elements together based on their similarities within the group and differences from elements outside the group. Cluster analysis finds wide applications in marketing, insurance, and geology.
There are three types of cluster analysis mainly:
- Hierarchical Cluster method, creates multiple models starting from a cluster containing all elements and gradually forming smaller clusters. It helps analysing different types of data.
- K-Means Cluster, is suitable for clustering large datasets. Researchers define the number of clusters beforehand and test different models accordingly.
- Two-Step Cluster, combines K-means and hierarchical cluster analysis. It first performs pre-clustering using a cluster algorithm and then applies hierarchical methods. It is useful when traditional hierarchical analysis is not feasible for large datasets.
Machine learning is a key component of advanced data analytics, using computational methods to identify patterns and create statistical models.
There are different types of machine learning:
- Supervised learning: Machines learn from labelled data, seeking specific patterns in large datasets to make accurate predictions.
- Unsupervised learning: Algorithms group data based on similarities, finding correlations and anomalies without specific objectives.
- Semi-supervised learning: It combines labelled and unlabelled data, using the labelled subset to train the model and label the rest.
- Reinforcement learning: This newer approach involves trial and error, using rewards and penalties to make optimal choices and achieve objectives.
Complex Event Analysis:
Complex Event Analysis, also known as complex event processing (CEP), is an advanced data analytics technique that examines real-time data from multiple sources to identify cause-and-effect relationships and discover complex designs. Complex event analysis finds relevance in scenarios with high event volumes and low latency requirements.
It is commonly used in the following ways:
- Marketers can utilize complex event analysis to identify patterns in consumer behaviour and deliver personalized offers in real-time.
- By analysing complex events, this technique helps identify stock price patterns and triggers appropriate buying or selling actions.
- Manufacturing facilities can employ complex event analysis to continuously monitor data and detect patterns indicating the need for predictive maintenance, optimizing equipment performance.
In the emerging field of autonomous vehicles, CEP is used to gather and process data in real-time, enabling the system to identify traffic signs, calculate distances, and determine appropriate deceleration rates for safe driving.
The above mentioned techniques, when applied effectively, can yield significant benefits across various business domains (marketing, finance, operation, etc.). By harnessing the power of these techniques, businesses can navigate the complexities of the modern business world and make data-driven decisions that drive growth and success. Embracing data analytics is no longer a choice but a necessity in today’s fast-paced and data-centric environment. So, it is a good time to get a certificate in Business Analytics, for those looking to make their career in this field or to learn about data analytics.