Let’s start with the general definition of the two words, analysis is the division of a whole into small components, whereas analytics is the science of logical analysis.
If looking at the fundamental difference it turns out to be quite simple, analysis is looks back over time considering historical data while analytics incorporates this analyzed information to predict what may happen, in other words forecasting to make business decisions.
Let’s dive a little deeper into these concepts and identify key differences while I have your attention.
- Data analysis is a process involving the collection, manipulation, and examination of data for getting a deep insight. Data analytics is taking the analyzed data and working on it in a meaningful and useful way to make well-versed business decisions.
- Data analysis helps design a strong business plan for businesses, using historical data that tell about what worked, what did not, and what was expected from a product or service. Data analytics helps businesses in utilizing the potential of past data and in turn identify new opportunities that would help them plan future strategies. It helps in business growth by reducing risks, costs, and making the right decisions.
- In data analysis, experts explore past data, break down the macro elements into micros with the help of statistical analysis, and draft a conclusion with deeper and more significant insights. Data analytics utilizes different variables and creates predictive and productive models to challenge in a competitive marketplace.
- Data analytics is more extensive in its scope and encompasses data analysis as a sub-component. The life cycle of data analytics also comprises data analysis as one of the significant steps.
- Data Analytics and data analysis, both are essential to understand the data as the first one is useful in estimating future demands and the second one is necessary for gaining insight by analyzing the details of past data. Data analysis is actually studying past data to understand ‘what happened?’ Whereas data analytics predicts ‘what will happen next or what is going to be next?’
In summary, data analysis is a component of data analytics, but data analytics encompasses a broader range of activities beyond just data analysis.
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