DATA, ANALYTICS, AND INSIGHTS: THE DIFFERENCE AND THE MEANING
Source – https://www.analyticsinsight.net/
Understanding how to differentiate between data, analytics, and insights and how they work.
Data. Analytics. Insights. These three are the most important food for the soul of business today. The current scenario is more transformational and technology-dependent, where data is known as the digital currency. Data is driving business intelligence through advanced analytics and by deriving intelligent insights. These three aspects are interconnected and they build off the process of generating insights from data. Without data, analytics cannot be performed and hence, insights cannot be interpreted. However, several times people confuse these terms, using them interchangeably. This might dissolve the actual significance of the terms and what they stand for. Hence, here is an effort to distinguish them and understand their meanings interdependent of each other.
Data: The Cornerstone of Business Intelligence
Business intelligence and digital transformation sound snazzy and stylish since it involves cutting-edge technologies like Artificial Intelligence and Data Science. In order to start a transformation, you need to lay the groundwork, and data does that job. Today, there is an abundance of data that are obtained from a wide variety of sources. A singular data point might seem not useful, but when it is presented collectively, it is possible to define patterns and meaning from them. Big data is the exponentially growing huge amount of data that has become the foundation of businesses across industries. This includes data from consumers, users, clients, general audience, internet, media, and many other data points.
Businesses collect data differently according to their niche and needs. Hence, data should have a context so that meanings can be derived. Business organizations should deploy smart infrastructures and experts to collect and process the unstructured, raw data. Maintaining a data flow and storing the huge loads of data have become great challenges these days.
Analytics: Discovering the Meaning
We discussed how singular data without a context can be senseless. Analytics steps in here. It enables us to find patterns and meanings from the huge datasets and makes it sensible. Disruptive technologies have made analytics more advanced to gain better business decisions. Unlocking the real value from data is not possible without analytics. Analytics experts help in processing the collected data and translating it into a comprehensible form. With analytics, an organization can understand how it is performing over time and deliver patterns of consumer behavior and market trends. Arriving at important marketing and business decisions is impossible without analytics.
Let us take an example of a business trying to sell a product. For this, they have to first identify the demographic they are going to serve, then find their interests and behavior patterns, establish a strategy to get the product into the market, and later measure its impacts and effects. All this is possible by deploying analytics on the data collected. For online websites, measuring traffic is a significant step today and analytics completes this demand.
Insights: Taking Actions with Decisions
Let us continue from the same example. The same product that you were planning to launch has now been provided with analytical insights. It now shows what are the unique customer behaviors, the perfect time to launch your product in the market, and highlights the risk elements involved in the process. These are called insights, or analytics insights. They are the value derived from combining data and analytics. These are powerful comprehensions that can enhance business growth, customer traction, and predict risks.
Insights are like the edible form of food you get after you add the ingredients and cook them in specific directed conditions. Here, the ingredients are data and the preparation process is the analytics performed on them.
Data-Driven Business Intelligence
Data and analytics will seem invaluable if they cannot deliver meaningful insights. Disruptive technologies like AI and machine learning play a potential role in enabling data-driven business intelligence. Insights should be comprehensible and actionable, which can improve the business and accelerate its transformation. These data-driven insights are the reason behind banks being able to detect frauds, healthcare providers being able to diagnose from medical images, manufacturers being able to smartly manage the supply chains, etc.
Data intelligence is entering into new horizons with the help of disruptive technologies providing new avenues for businesses. Today’s customer-centric businesses are surviving on the data insights to understand and engage with their customers. Businesses need to find the meaning and decisions from data analytics and the insights they derive. As the great American mathematician, John Wilder Tukey has said, “The greatest value of a picture is when it forces us to notice what we never expected to see.”