{"id":4955,"date":"2021-08-12T16:40:00","date_gmt":"2021-08-12T11:10:00","guid":{"rendered":"https:\/\/www.saasworthy.com\/blog\/?p=4955"},"modified":"2021-08-17T15:56:22","modified_gmt":"2021-08-17T10:26:22","slug":"what-is-advanced-analytics","status":"publish","type":"post","link":"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics","title":{"rendered":"What Is Advanced Analytics: All You Need to Know"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/images.saasworthy.com\/blog_latest\/wp-content\/uploads\/2021\/08\/1-10-1024x538.png\" alt=\"\" class=\"wp-image-5002\" srcset=\"https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/1-10-1024x538.png 1024w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/1-10-400x210.png 400w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/1-10-143x75.png 143w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/1-10-150x79.png 150w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/1-10-450x236.png 450w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/1-10-768x403.png 768w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/1-10.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Advanced analytics helps you juice your data better. It encompasses various methods and tools that slice and dice data for insights. Some of these are not possible through traditional analytics. It can help forecast trends and events with a large number of variables. With predictive capabilities, advanced analytics helps businesses plan better.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#How_is_advanced_analytics_different_from_data_science\" title=\"How is advanced analytics different from data science?\">How is advanced analytics different from data science?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#What_are_common_examples_of_advanced_analytics\" title=\"What are common examples of advanced analytics?\">What are common examples of advanced analytics?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#What_are_different_types_of_advanced_analytics\" title=\"What are different types of advanced analytics?\">What are different types of advanced analytics?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#1_What_is_data_mining\" title=\"1. What is data mining?\">1. What is data mining?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#2_What_is_predictive_analytics\" title=\"2. What is predictive analytics?\">2. What is predictive analytics?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#3_What_is_prescriptive_analytics\" title=\"3. What is prescriptive analytics?\">3. What is prescriptive analytics?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#4_What_is_big_data_analytics\" title=\"4. What is big data analytics?\">4. What is big data analytics?<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#What_are_the_benefits_of_advanced_analytics_technologies\" title=\"What are the benefits of advanced analytics technologies?\">What are the benefits of advanced analytics technologies?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/dev.saasworthy.com\/blog\/what-is-advanced-analytics\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"how-is-advanced-analytics-different-from-data-science\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_advanced_analytics_different_from_data_science\"><\/span>How is advanced analytics different from data science?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Advanced analytics coupled with technology such as artificial intelligence and machine learning becomes data science. Data science analyses various data types, including both structured and unstructured data. Therefore, data science is a more specialized form of advanced analytics. Examples will help us understand the difference better.<\/p>\n\n\n\n<h2 id=\"what-are-common-examples-of-advanced-analytics\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_common_examples_of_advanced_analytics\"><\/span>What are common examples of advanced analytics?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the most common examples or use cases of advanced analytics is <a href=\"https:\/\/hbr.org\/1971\/07\/how-to-choose-the-right-forecasting-technique\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener nofollow\" class=\"ek-link\">retail trend forecasting<\/a>. It is used both by online and offline retailers.&nbsp;<\/p>\n\n\n\n<p>Retail forecasting relies on several internal and external variables. Internal variables include the availability of stock, manufacturing and logistical capabilities, number of outlets, and so on. External variables could be weather, new launches, competition, pricing, and alternatives, to name a few. <\/p>\n\n\n\n<p>With so many variables, a traditional analytics tool to predict sales might not work. You could discount a variable with maximum influence on sales. Consequently, you will end up with unsold inventory, which you will have to clear at a discount.<\/p>\n\n\n\n<p>Advanced analytics, on the other hand, runs several what-if scenarios and recommends the most optimum product mix, along with pricing. It does this using advanced machine-learning algorithms absent in traditional BI tools.<\/p>\n\n\n\n<p>Another well-known use case of advanced analytics is in digital marketing. Advertising platforms such as Google and Facebook use it to understand user behavior. Based on it, they show them relevant ads. <\/p>\n\n\n\n<p>For example, if you regularly watch travel shows and look up baby products, Google\u2019s advanced analytics targets you with a particular messaging. You wouldn\u2019t be surprised to see ads related to travel booking nudging you to take that weekend trip with family.<\/p>\n\n\n\n<p>While these are most common advanced analytics examples, it has different types.<\/p>\n\n\n\n<h2 id=\"what-are-different-types-of-advanced-analytics\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_different_types_of_advanced_analytics\"><\/span>What are different types of advanced analytics?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/images.saasworthy.com\/blog_latest\/wp-content\/uploads\/2021\/08\/2-12-1024x538.png\" alt=\"\" class=\"wp-image-4996\" srcset=\"https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/2-12-1024x538.png 1024w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/2-12-400x210.png 400w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/2-12-143x75.png 143w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/2-12-150x79.png 150w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/2-12.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Source: <a href=\"https:\/\/www.freepik.com\/vectors\/business\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener nofollow\" class=\"ek-link\">freepik<\/a><\/figcaption><\/figure>\n\n\n\n<p>Advanced analytics is, admittedly, a broad term. You can break it into the following different types based on the purpose it serves &#8211;<\/p>\n\n\n\n<p>1. Data mining<\/p>\n\n\n\n<p>2. Predictive analytics<\/p>\n\n\n\n<p>3. Prescriptive analytics<\/p>\n\n\n\n<p>4. Big data analytics<\/p>\n\n\n\n<h3 id=\"1-what-is-data-mining\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_data_mining\"><\/span>1. What is data mining?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Data mining forms the core of advanced analytics. It mines knowledge from large databases. Knowledge here refers to insights, hidden patterns, and unnoticed trends. It uses machine-learning algorithms.<\/p>\n\n\n\n<p>Here are the most common data mining methods &#8211;<\/p>\n\n\n\n<p><strong>Cluster analysis \u2013<\/strong> It clusters datasets based on similarities. Ad platforms use it for identifying target segments for a given product.<\/p>\n\n\n\n<p><strong>Cohort analysis \u2013<\/strong> It segregates smaller related groups from a larger group based on specific attributes. The behavior patterns of smaller groups are then analyzed. For example, a fashion retailer may segment its female customer base into college-goers and working women. Cohorts may run deeper based on behavior patterns.<\/p>\n\n\n\n<p><strong>Anomaly detection \u2013<\/strong> It identifies outliers in the dataset. While detecting fraud is the most common use, it also tracks the immediate impact of high-spend ad campaigns.<\/p>\n\n\n\n<p><strong>Association rule (or Co-relation) mining \u2013<\/strong> It analyzes the relation between two or more variables. For example, few e-commerce companies use it to identify product bundles. If you buy a Kindle, you would most likely buy a sleeve too.<\/p>\n\n\n\n<p><strong>Regression analysis \u2013<\/strong> While co-relation analysis establishes a relationship between two variables, regression helps decide the direction and magnitude. For example, it helps establish the relationship between sales and each dollar reduced by the competition.&nbsp;<\/p>\n\n\n\n<h3 id=\"2-what-is-predictive-analytics\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_What_is_predictive_analytics\"><\/span>2. What is predictive analytics?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Traditional business intelligence tools rely on post-event analysis to understand what and why. It cannot predict the future impact with new variables. However, advanced analytics based on artificial intelligence learns from the changing data trends quickly. For example, during the pandemic, businesses using advanced analytics could predict sales with better accuracy than others.&nbsp;<\/p>\n\n\n\n<p>Predictive analysis uses data mining, machine learning, and predictive modeling techniques. It uses data from a variety of sources to arrive at a forecast. From <a href=\"https:\/\/www.saasworthy.com\/list\/crm-software\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">CRM<\/a> to macro-economic data, it factors in all information for a more accurate outcome. It finds a wide range of applications \u2013 predicting weather patterns, employee disengagement, infection rates, and so on.<\/p>\n\n\n\n<h3 id=\"3-what-is-prescriptive-analytics\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_What_is_prescriptive_analytics\"><\/span>3. What is prescriptive analytics?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The next step after getting the output from predictive analytics is to act on it. Even with all insights available, it can be tough to decide without knowing the outcome. A sub-optimal decision could severely impact revenues and profitability.&nbsp;<\/p>\n\n\n\n<p>Prescriptive analytics helps you decide better by proposing solutions and explaining their impact. Thus, it takes analytics one level deeper into the decision-making process. It has more advanced algorithms that require more computing power.<\/p>\n\n\n\n<p>Understandably, prescriptive analytics could prove expensive for smaller organizations. For large organizations, it saves a lot of money by making decision-making more efficient across the organization.<\/p>\n\n\n\n<h3 id=\"4-what-is-big-data-analytics\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_What_is_big_data_analytics\"><\/span>4. What is big data analytics?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Even in the most data-driven organizations, most data lies in an unstructured form. It could be in the form of contracts, images, decks, pdf files, and audiovisual formats. Consequently, a good part of the data remains untapped.&nbsp;<\/p>\n\n\n\n<p>Big data deconstructs this data, quantifies, and analyses it. It opens up floodgates of business intelligence, which up until now were lying unused. Undoubtedly, it is expensive and hence used by big businesses. However, cheaper and more cost-effective options are also emerging. These offer similar benefits to smaller businesses at a lower cost.<\/p>\n\n\n\n<h2 id=\"what-are-the-benefits-of-advanced-analytics-technologies\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_advanced_analytics_technologies\"><\/span>What are the benefits of advanced analytics technologies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/images.saasworthy.com\/blog_latest\/wp-content\/uploads\/2021\/08\/3-11-1024x538.png\" alt=\"\" class=\"wp-image-5000\" srcset=\"https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/3-11-1024x538.png 1024w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/3-11-400x210.png 400w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/3-11-143x75.png 143w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/3-11-150x79.png 150w, https:\/\/dev.saasworthy.com\/blog\/wp-content\/uploads\/2021\/08\/3-11.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>Source: <\/em><a href=\"https:\/\/www.freepik.com\/vectors\/business\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener nofollow\" class=\"ek-link\">freepik<\/a><\/figcaption><\/figure>\n\n\n\n<p>From a business perspective, advanced analytics leverages data to earn a higher return on every dollar invested. It helps &#8211;<\/p>\n\n\n\n<p>\u2022 <strong>Equip the leadership team to make more accurate decisions<\/strong><\/p>\n\n\n\n<p>Data-driven decisions work best when the analytics solution minimizes the scope of guesswork. Advanced analytics provides decision-makers insight into not just data but also the possible impact of a decision. Analyzing several what-if scenarios helps decision-makers arrive at the most optimal decisions in time.<\/p>\n\n\n\n<p>\u2022<strong> Save time and effort<\/strong><\/p>\n\n\n\n<p>Traditional BI tools lack the flexibility to ingest new data points and predict possible outcomes quickly. There often, businesses lose time in decision-making, identifying mistakes, and course-correcting. Advanced analytics reduces the time spent on trial and error. It shortens the learning curve and allows time to find more creative solutions.<\/p>\n\n\n\n<p>\u2022 <strong>Broaden the scope for creative solutions<\/strong><\/p>\n\n\n\n<p>With the time saved in crunching data, strategy teams can focus on creative thinking for addressing a problem. Moreover, they can also predict the outcome of such decisions. It mitigates the chances of adverse impact and helps deliver a good ROI.<\/p>\n\n\n\n<p>\u2022 <strong>Provide a competitive edge and delivers ROI<\/strong><\/p>\n\n\n\n<p>An advanced analytics solution allows you to uncover insights, which most competitors wouldn\u2019t have access to. It helps you recognize trends faster, allowing enough time for planning and executing new strategies.&nbsp;<\/p>\n\n\n\n<h2 id=\"conclusion\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many organizations undergoing digital transformation are also creating large pools of business data. It includes data about customers, supply chain, operations, human resources, and more. Not tapping into this data, limits the growth of an organization. More so, in the current times.<\/p>\n\n\n\n<p>As businesses reel under the impact of uncertainties, the role of advanced analytics increases manifold. Investing in advanced analytics solutions, helps organizations tap into their data better. It saves time and helps them realize a better ROI.<\/p>\n\n\n\n<p>If you haven\u2019t already started leveraging the power of data, you must do it immediately. Here\u2019s a list of <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.saasworthy.com\/list\/predictive-analytics-software\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"ek-link\">top predictive analytics software<\/a> to help you get started.<\/p>\n\n\n\n<p><strong>Also read:<\/strong><\/p>\n\n\n\n<p>\u2022 <a href=\"https:\/\/dev.saasworthy.com\/blogwhat-is-computer-vision\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">What Is Computer Vision: An Introductory Guide<\/a><\/p>\n\n\n\n<p>\u2022 <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/dev.saasworthy.com\/blogunderstanding-predictive-analytics-software-and-its-uses\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"ek-link\">Understanding Predictive Analytics Software And Its Uses<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Check out this introductory guide to understand what is advanced analytics. The article talks about the subsets of data analytics as well as various use cases.<\/p>\n","protected":false},"author":6,"featured_media":5002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":5,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[199],"tags":[],"class_list":{"0":"post-4955","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-emerging-technology"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Advanced Analytics: All You Need to Know - SaaSworthy Blog | Top Software, Statistics, Insights, Reviews &amp; Trends in SaaS<\/title>\n<meta name=\"description\" content=\"Check out this introductory guide to understand what is advanced analytics. 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