Descriptive Analytics is the most basic section of Business Intelligence(BI) that does exactly what the term “Descriptive” suggest to “describe” or examining the raw data and make it something that is understood by humans.
Descriptive Analytics is an initial stage of data processing that provides historical insights to yield useful information and prepare the data for the further analysis process. Descriptive Analytics or statistics makes use of data aggregation and data mining to produce insights and answer the question “What happened?” They are the type of analytics that describes the past. The past refers to any point of time when an event has occurred, whether the event is one minute ago, or a year ago. Descriptive statistics are useful as they allow us to learn from past behaviours, and interpret how they might influence the future outcomes or events. Common examples include advertising or promotion, Return on Investment (ROI) measures, customer journey analysis, and customer satisfaction analysis.
Examples of descriptive analytics are reports that yield useful historical insights regarding:
- Company’s production