By Jeffrey A.
Descriptive analytics has to do very heavily with business intelligence. It is often considered the first step in gathering business intelligence because of its relation to big data, which is large collections of information gathered by corporations or other entities. This is often done for the purpose of developing reports or creating forecasts, but it is not possible without accurate and proper data collection methods. Other forms of analytics include predictive and inquisitive analytics that deal with different areas of analyzing data. Descriptive analytics is not to be confused with these though because they deal more with data after it has been organized and formatted. Descriptive analytics is the most important form of analysis when gathering business intelligence.
Descriptive analytics is very well described in an article by Bertolucci Big Data Analytics: Descriptive Vs. Predictive Vs. Prescriptive. Bertolucci defines descriptive analytics and its simplistic importance by saying “The purpose of descriptive analytics is to summarize what happened. Wu estimated that more than 80% of business analytics — most notably social analytics — are descriptive.” Not only is it the simplest but it is also the most basic and the other forms of analytics are vitally dependent on it. According to an article by Shankar V titled Business analytics driven students likings on social media there are many ways social media utilizes descriptive analytics. It is directly written “SNS contains exponential amount of user generated data which helps business analytics to analyze, summarize information for displaying proactive alerts in dashboards.” It gathers data through surveys or through monitoring habits of its users. Using this raw data, it can formulate specific advertisements for users that will appear on their webpages while they browse. It allows them a more responsive way to interact with users. It can also collect data on usage of certain web applications and can better help monitor for errors or malfunctions that could cause irritation for the user. Another article titled Big data in Government Services gives examples of how government agencies collect data and how they use it. The many uses include combatting terrorism and crime prevention by gathering data from convicts. “IBM has a big data analysis platform known as IMB Watson Foundation that has the capability to create solution of all data related to many government duties like threat prediction and protection, social program fraud, tax compliance, and crime prediction and prevention.” The IBM Watson Foundation provides a perfect example on what descriptive analytics can provide to the world. This massive collection of formulated data causes tremendous good, and it genuinely benefits the world.
Other forms of business intelligence are incredibly important, such as predictive analytics, inquisitive analytics, and prescriptive analytics. Each has an important part in gathering information for businesses, though they offer less importance in the big picture. Descriptive analytics allows businesses to firmly address the issues and the questions, and without a firm understanding other forms of analytics can do very little. It takes great understanding to make an informed decision and that is precisely what descriptive analytics specializes in.
Shankar, V. (2014). Business analytics driven students likings on social media. Advances in Management, 7(12), 22.