UNIT III DESCRIPTIVE ANALYTICS 9

Introduction to Descriptive analytics - Visualising and Exploring Data - Descriptive Statistics -

Sampling and Estimation - Probability Distribution for Descriptive Analytics - Analysis of
Descriptive analytics

Descriptive Analytics is the examination of data or content, usually manually performed, to answer the
question “What happened?” (or What is happening?), characterized by traditional business intelligence
(BI) and visualizations such as pie charts, bar charts, line graphs, tables, or generated narratives.

Descriptive analytics is a field of statistics that focuses on gathering and summarizing raw data to be
easily interpreted. Generally, descriptive analytics concentrate on historical data, providing the context
that is vital for understanding information and numbers. The field is used across a variety of industries
and needs, and can cover a diverse range of purposes, from inventory tracking to benchmarking yearly
revenues and sales. The field usually serves as a preliminary step in the business intelligence process,
creating a foundation for further analysis and understanding. Essentially, descriptive analytics seeks
answers about what happened, without performing the more complex analyses required in diagnostics and
predictive models. In business intelligence, descriptive analytics is usually the first step and will result in
visualizations like pie charts, line graphs, bar charts, and other simpler graphical displays.
The field usually employs simpler mathematics and statistical tools (such as arithmetic, averages, and
percent changes) instead of more complex calculations that predictive and prescriptive analytics perform.
It also includes the initial stages of data aggregation and data mining in most data analytics software.

How does descriptive analytics work?

Descriptive analytics uses two key methods, data aggregation and data mining (also known as data
discovery), to discover historical data. Data aggregation is the process of collecting and organising data to
create manageable data sets. These data sets are then used in the data mining phase where patterns, trends
and meaning are identified and then presented in an understandable way.
descriptive analytics process into five broad steps:
 Business metrics are decided. First, metrics are created that will effectively evaluate performance
against business goals, such as improving operational efficiency or increasing revenue. The success of
descriptive analytics heavily relies on KPI (key performance indicator) governance. „Without
governance,‟ he writes, „there may not be consensus regarding what the data means, thus guaranteeing
analytics a marginal role in decision making.‟
 The data required is identified. Data is sourced from repositories such as reports and databases. „To
measure accurately against KPIs,‟ Vesset says, „companies must catalogue and prepare the correct data
sources to extract the needed data and calculate metrics based on the current state of the business.
 The data is collected and prepared. Data preparation – depublication, transformation and cleansing, for
example – takes place before the analysis stage and is a critical step to ensure accuracy; it is also one of
the most time-consuming steps for the analyst.
 The data is analysed. Summary statistics, clustering, pattern tracking and regression analysis are used to
find patterns in the data and measure performance.
 The data is presented. Finally, charts and graphs are used to present findings in a way that non-analytics
experts can understand.

What can descriptive analytics tell us?

Descriptive analytics is frequently used in the day-to-day operations of an organisation. Company reports
– such as those on inventory, workflow, sales and revenue – are all examples of descriptive analytics that
provide a historical review of an organisation‟s operations. Data collected by these kinds of reports can be
easily aggregated and used to create snapshots of an organisation‟s operations.
According to online learning platform DeZyre, social analytics are almost always an example of
descriptive analytics. The number of followers, likes and posts can be used to determine the average
 number of replies per post, the number of page views and the average response time, for example. The
comments that people post on Facebook or Instagram are also examples of descriptive analytics and can
be used to better understand user attitudes.
Descriptive analytics does not, however, attempt to go beyond the surface data and analysis; additional
investigation falls outside the domain of descriptive analytics, and insights learned from descriptive
analysis are not used for making inferences or predictions. What this methodology can reveal, though, are
patterns and meaning through the comparison of historical data. An annual revenue report, for example,
may appear to be financially reassuring in isolation until it is compared to the same reports from previous
years, and together they reveal a downward trend.

Examples of descriptive analytics

Descriptive analytics helps organisations measure performance to ensure goals and targets are being met.
And if they aren‟t being met, descriptive analytics can identify areas that require improvement or change.
Some examples of how descriptive analytics can be used include the following:
 Summarising past events such as sales and operations data or marketing campaigns
 Social media usage and engagement data such as Instagram or Facebook likes
 Reporting general trends
 Collating survey results
 Tracking course enrollments, course compliance rates,
 Recording which learning resources are accessed and how often
 Summarizing the number of times a learner posts in a discussion board
 Tracking assignment and assessment grades
 Comparing pre-test and post-test assessments
 Analyzing course completion rates by learner or by course
 Identifying length of time that learners took to complete a course

Advantages of descriptive analytics

When learners engage in online learning, they leave a digital trace behind with every interaction they
have in the learning environment.
This means that descriptive analytics in online learning can gain insight into behaviours and performance
indicators that would otherwise not be known.
Here are some advantages to utilizing this information:
 Quickly and easily report on the Return on Investment (ROI) by showing how performance
achieved business or target goals.
 Identify gaps and performance issues early - before they become problems.
 Identify specific learners who require additional support, regardless of how many students or
employees there are.
 Identify successful learners in order to offer positive feedback or additional resources.
 Analyze the value and impact of course design and learning resources.
What is Data Visualization?
Like the term suggests, data visualizations is taking the data you have and converting it into a more visual
form. Instead of having to look at numbers and spreadsheets, you get a picture that represents that
information. While descriptive statistics can break data down into something more digestible, data
visualization goes even further, taking that data and creating a visual that instantly communicates a story.
If you‟ve ever seen a pie graph (and that‟s probably a given), then you know what this looks like in
action. Pie graphs are very simple examples of visualization, but they‟re very effective in what they do.
Think of bar charts, line graphs, spider charts, scatter plots, and diagrams and all the information they can
convey in a moment. Think of it like the ultimate visual aid. It‟s easy to see why data visualization is a
key ingredient in interpreting data.

The Importance of Data Visualization

From a business perspective, data visualization is indispensable. Data scientists may be able to look at
raw data and discover key findings, but communicating what data says to those who lack expertise in data
science will always be needed. If you need to get a point across in a short amount of time, data
visualization is the way to do it. It makes the data clear and cohesive, eliminating the fluff and showing
the most important points. With good data visualization, there will be no dispute over what the data is,
rather the only discussion would be what to do with the data presented.

Data Visualization and Descriptive Statistics in Business

Combining both descriptive statistics and data visualization transforms them into a valuable asset for any
company. One of the most important functions they serve is to help company leaders in making key
business decisions. Data has normally been used when coming to a crucial business decision and the use
of descriptive statistics and data visualization only amplifies that effectiveness.
There are many ways in which the two are used to inform business decisions. Through data visualization,
it‟s easier to notice patterns and identify how various data points relate to each other. Business leaders can
also look at recent historical trends and determine where those trends might go and how best the company
can capitalize on them. With raw data, many of these instances would be hard to figure out, but after
employing descriptive statistics and utilizing data visualization, the correlations can quickly become
evident.
With these vital pieces, businesses suddenly become much more versatile. With the data visually
displayed for everyone to understand, companies can identify untapped markets where their products or
services might flourish. They can determine which parts of a company‟s operations can be made more
efficient, thus cutting down on costs and optimizing overall performance. They may also identify ways to
improve the customer experience by getting real time feedback from customers. Businesses can even
prepare for future growth or possible downturns, keeping organizations ahead of the curve and ready to
handle all the opportunities and challenges that await them.

The Right Data Visualization Tool

All of this requires the use of an effective and versatile data visualization tool, the exact kind that
Import.io provides. With this tool, you can become proficient in understanding the data that you collect. A
good data visualization tool like this is extremely helpful in turning abstract data into something much
easier to grasp. As part of turning data into a visual element, the data gets cleaned, shaping into a
manageable item and filtering out data values that may unnecessarily interfere with the message
communicated through the information. Only through this process does data visualization turn data into
something you can use to help strategize and plan ahead.

Use Data Today

Data analysis, descriptive statistics, and data visualization should become part of a business‟s arsenal.
Data has so much to offer in terms of informing business decisions and planning business strategies.
Missing out on these capabilities means missing out on possibilities and opportunities to grow and find
greater success that‟s sustainable.