What is data analysis? The simplest definition of analysis is "the science of analysis". However, a practical definition would be how an entity, for example a business, reaches an optimal or realistic decision based on existing data. Business managers may choose to make decisions based on past experience or general rules, or there may be other qualitative aspects of decision-making, but unless the data is considered, it would not be an analytical decision-making process.

Analytics has been used in business since the time management exercises started by Frederick Winslow Taylor in the late 19th century. Henry Ford measured the pace of the assembly line, thus revolutionizing manufacturing. But analytics began to draw more attention in the late 1960s, when computers were used in decision support systems. Since then, analytics have evolved with the development of enterprise resource planning (ERP) systems, data warehouses, and a wide variety of other hardware and software tools and applications.

Today, companies of all sizes use analytics. For example, if you ask my fruit vendor why he stopped serving our road, he will tell you that we try to negotiate a lot and therefore lose money, but on the street next to mine he has some great customers for who provides excellent service. . This is the heart of analytics. Our fruit vendor TESTED my street service and realized I was losing money; within a month he stopped taking care of us, and even if we ask him, he won't appear. How many companies today know who their MOST PROFITABLE CUSTOMERS are? Do you know who are your clients that generate more costs? And given the knowledge of the most profitable customers, how should you focus your efforts to ACQUIRE THE MOST PROFITABLE customers?

Large companies use analytics to drive the entire organizational strategy. Some examples include:
• Capital One, a credit card company in the USA. In the USA, it uses analytics to differentiate customers based on credit risk and match customer characteristics with the right product offerings.
• Harrah's Casino, another US company, identified that against popular belief, its most profitable customers are those who play slot machines. To take advantage of this idea, they have created marketing programs to attract and retain their MOST PROFITABLE CUSTOMERS.
• Netflicks, the online movie service, identifies the most logical movies to recommend based on past behavior. This model has increased its sales because movie options are based on customer preferences, and therefore the experience is personalized for each individual.

Common analytics applications include studying business data using statistical analysis to discover and understand historical patterns with the goal of predicting and improving future business performance. Also, some people use the term to denote the use of mathematics in business. Others argue that the field of analytics includes the use of operations research, statistics, and probability; however, it would be wrong to limit the field of analytics to just statistics and mathematics.

While the concept is simple and the notion is intuitive, the common leverage of analytics to drive business is in its infancy. Stay tuned to learn more about the Science of Analytics in the second part of this article.

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This model has increased its sales because movie options are based on customer preferences, and therefore the experience is personalized for each individual.