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What is Analytics?
The purpose of analytics is to take existing data collected from either a single source or multiple sources and use it to arrive at the optimal decision. Essentially, analytics can be best defined as a science of analysis. This is most commonly used in situations where realistic judgments are necessary. Past experiences collected and rule of thumb concepts can be added to the data to create a qualitative aspect of decision making. However, without adequate data sources culled from various factors of real information, the determination cannot be said to be made with the concept of analytics.
Commonly, one of the most frequent uses of analytics is in the field of business. Managers or researchers for an analytics company can use various data mining techniques combined with historical patterns to make predictions about the performance of a particular market or business. This is usually done in an effort to improve an already existing model of operations. Mathematics are highly important, with determinations being made through graphs or sheer numbers.
Statistical probability and operational research are two common forms of strategy analytics. This helps determine the long term frequency of an event or the proportion of which the event occurs, even within a large population or sample base. Modeling and the analysis of algorithms help to find the concepts of maxima and minima. Maxima is a definition for the ultimate yield or profit of a particular objective function, while minima defines the level of loss or risk. The entire process should use the scientific method.
Web analytics defines the collection, measurement and reporting of data from the Internet. Optimization and understanding of web usage is handled in two different ways: off-site and on-site analysis. Off-site analysis measures the potential of a particular concept within the Internet. For example, if a person has an idea for a website, off-site analysis will provide the researcher with information about the viability of the concept. On-site analysis determines the usage parameters and overall experience of a person actually online in the form of such details as keyword success or actionable links.
Another utilization of analytics is in the banking and financial sector, specifically in regards to a person's investments. Portfolios under management by a business or institution use various aspects of data collection to find the appropriate mix of finances for an individual or company. Balances, risks, income and expenditures can all be processed to determine the best way and time frame for the portfolio.
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![Many anayltical determinations are made through the use of graphs and charts.]()
By: Sergey NivensMany anayltical determinations are made through the use of graphs and charts. -
![Web analytics are important to anyone who cares about who visits their site and how they got there.]()
By: Eugenio MarongiuWeb analytics are important to anyone who cares about who visits their site and how they got there. -
![As computer sciences emerged during the 20th century, the concept of data mining methods developed in an effort to find hidden patterns in large swaths of collected data.]()
By: vgstudioAs computer sciences emerged during the 20th century, the concept of data mining methods developed in an effort to find hidden patterns in large swaths of collected data.
Discussion Comments
I like the acknowledgement of analytics as the evolution of data mining. That's easily forgotten these days, as is the importance data quality plays in the analytics discussion.
In terms of what you can get out of analytics, IBM published an infographic on the topic recently with some startling factoids on performance. --Brian
Looking at your personal finances and trying to improve on investments and how you balance expenditures with income can be a difficult task for any individual. Luckily, many banks are now offering free analytics software with their online banking services. This analytics tool can allow you to see what you are spending and where you are spending it. It allows for the creation of simple charts that can help you visualize your spending habits. This can give you a lot of power when it comes to controlling your finances.
In addition to all that, the analytics tool can also track your investment to see how they are growing and track interest rates.
If you are starting an online site a great idea is to make sure that you utilize the power of web analytics to your benefit. This can be done for free through various web sources online and will give you a picture of who is visiting your website, where they are from and how long they stay on each page.
If you are just starting to advertise this information can be invaluable because it can tell you how successful you are at driving new traffic to your site.
In the case of web site analytics, it also gives you the bounce rate of visitors, which can tell you whether or not people are staying on your site once they get to it, or just leaving immediately.
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