The Concept of Data and its Analysis

Data is defined as facts and statistics collected together for reference or analysis.

Analysis on the other hand is defined as a detailed examination of a structure to understand it's features. The main aim of analysis is to make reasonable conclusions/decisions.

Putting together what we know about Data and about analysis, we can define Data analysis as a detailed examination of facts and statistics in order to understand it's features and make good decisions.

The 'facts and statistics' here can be a tiny or large collection of information. This information is then examined for a proper understanding of it's features.

For example, let us consider the number of children in your city, their gender, their ages, and the name of their schools. We shall assume that there are about 10,000 children in the city.

Lots of reasonable observations can be made from the data in this example. By just analysing it, we can observe the following:

1. The ratio of male children to female children in the city.

2. The number of males and females in the city that are above 12 years old.

3. The school with the highest attendance of male or female children in the city.

These observations are beautiful, but, there is something interesting that can be done with them. We can make quality business decisions from the observations.

Data is analysed in order to provide a basis for quality business decisions. That is the central idea behind analysis. That, also, is the aim of this exposition.

Let's go through our observations keenly and make some business decisions.

1. For our first business decision, let's combine the first two observations. If we have more females than males in the city, and most of the females are above 12 years old, supplying sanitary pads to retail shops and supermarkets in the city will be a lucrative business.

2. If there is a new brand of sanitary pads produced by a recently established company, how can the company quickly introduce it's new sanitary pad and grow it's customer base? A very productive approach will be to host a seminar on feminine hygiene in each of the schools in the city, during which they introduce the new brand of sanitary pads.

You guessed right, they will have to start with the school with the highest number of female children above 12 years of age.

More business decisions can be made with more data and more analysis. For example, if we know the prices that other sanitary pads are sold, and we know the average spending capacity of people in the city, we can easily decide on the price at which the new brand of sanitary pad can be sold.

These are quality business decisions made based on our analysed data. This explains why the role of Data Analysts in companies cannot be overemphasized.

I always write quality and insightful articles like this. I previously wrote on Analysis and Science - the path to unravel data. Take a look at it by clicking on the link. Also follow me for more insightful contents.

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