Collecting the information is just the first step in the process, and best practices need to be used to harness the full potential of the data.

Diagnostic analysis

Its objective is to carry out a broad and general verification of a certain situation that occurred in the past. This is where most companies are at, the very beginning stage. I like to call this type of analysis an “autopsy”, I know it doesn’t sound good, but it’s an association that fits.

In other words, this procedure uses the data to help with business planning, as the diagnoses made show patterns and general information.

Descriptive analysis

It mines data in real time, aiming to find quick and safe answers to the various questions that exist in the day-to-day of a company.

Realize that the study is made to support decisions in the present, not in the future.

Predictive analytics

Uses facts from the past to visualize and predict future events. Precisely for this reason, it is one of the most demanded techniques in the day-to-day of companies, helping them to protect themselves from risks and to take better advantage of opportunities.

To put it into practice, it is necessary to collect data from the most diverse sources to cross-reference information that will enrich the analysis and bring predictive and intelligent insights.

Prescriptive analytics

Can be confused with predictive, but despite the similarities, its objective is different: it does not focus on predicting the future, but on determining the consequences of the decisions taken. Like creating scenarios.

Its central idea, therefore, is to identify the best strategies, according to existing standards. In this way, through more assertive decisions, it contributes to the improvement of business performance.

Wrapping up!

In this way, while descriptive analysis follows sales in real time, a diagnosis of the previous month can be made to change something in the sales campaign that is being carried out this month. In parallel, the director may need predictive analysis to know the sales projects for the following months until the end of the year. If the results are not what you expect, you can ask for a prescriptive analysis, assuming 2–3 scenarios of price increases, greater investment in marketing and an increase in sales channels, to understand the consequences of each possibility.

Next, how to do each of these analyses.