The Role of Data Analysts

Organizations seek help from data analysts for multiple reasons. When it comes to making major business decisions, their role is like that of a key for lock; you cannot take the next step or open the door of success without relying on them. Whether you have to identify a problem, make a new investment, come up with a solution, introduce or develop a new product, or even select the right target audience, data and data analysts are required to achieve your purpose. Data Analysts provide you with numerical information and values which you need for important business functions. In this article, we will discuss the role of data analysts and touch upon the areas in which you can specialize. So, let’s begin!

What do Data Analysts do?

A Data Analyst does not only gather information but also cleans, analyzes and interprets large data sets using various statistical techniques and later communicates their data driven insights with the organization's stakeholders such as managers or executives. It requires both their empirical and theoretical knowledge to predict the future and make sound decisions on that basis. Data analysts closely study the current trends using the computer systems. If you want to pursue a career in this field, you can specialize in the below mentioned areas:

1.      Descriptive Analytics: Here the analysts identify trends by looking at the current and historical data. They find out what changes have occurred in a business by analyzing the yearly website traffic and engagement, revenues per month and sales etc. They examine the visuals such as bar charts, tables, graphs or pie charts and they are more concerned with "What has happened or is happening."

2.      Diagnostic Analytics: In diagnostic analytics, you dug deeper into the data to find the reason or identify the cause behind specific results. Here your focus is on the correlation between the variables and this process can be performed using statistical software. Data analysts provide answers to the questions i.e. "What led to this or why did it happen?"

3.      Predictive Analytics: Predictive analysis depends on both descriptive and diagnostic analytics. These data analysts predict the probability of a certain result by using Artificial Intelligence, Machine Learning, Statistics and various other techniques. It helps in demand forecasting, identifying frauds and foretelling consumer behavior. Here the question that comes in is "What will happen?" So, by forecasting potential scenarios companies can take effective measures.

4.      Prescriptive Analytics: Here, advanced tools, technologies and complex algorithms are used in order to determine the best course of action. In easy words, prescriptive analysts have to think about what should happen in future and how they can make that happen. 

All in all, data analysts have to extract and analyze data and simultaneously work with the management to make the best business decision.