FIGURING OUT WHAT THE DATA MEANS
Simply collecting data has no effect on performance.Data needs to be analyzed.Data analytics refers to the specialized software, capabilities, and components all geared toward exploring huge volumes of data to provide greater insight and intelligence— and doing so quickly.Why is it important to analyze quickly? One reason is to be able to know how a particular sale or marketing campaign has influenced sales. The processes needed to prepare for and conduct data analytics are complex and expensive—and require expertise in statistics and modeling.Data analytic processes include: 1. Locating and collecting reliable data from multiple sources that are in various formats. 2. Preparing the data for analysis. Collected data is not usable until it has been organized,standardized,duplicates are removed (called deduping),and other datacleansing processes are done. 3. Performing the correct analyses, verifying the analyses, and then reporting the findings in meaningful ways. In the early 2000s,the ability to perform data analytics in real time,or near-real time,improved when vendors and consulting companies started offering it as a service.In the 2010s,vendors offered pre-built,hosted analytics and advanced analytics solutions that reduced total cost of ownership (TCO) and made it feasible for companies to implement data analytics. Macys’ and other large retailers used to spend weeks reviewing their last season’s sales data.With data analytic capabilities,they can now see instantly how an e-mailed discount code or flash sale for athletic wear played out in different regions.Charles W. Berger,CEO of ParAccel (ParAccel.com),a data analytics provider said:“We have a banking client that used to need four days to make a decision on whether or not to trade a mortgage-backed security.They do that in seven minutes now.”Data analytics is used by Wal-Mart stores to adjust its inventory levels and prices;and by FedEx for tweaking its delivery routes.IT at Work 1.1 identifies other users of data analytics.